Question Details

Adams Co. uses the following standard to produce a single unit 



1. A company's flexible budget for 48,000 units of production showed variable overhead costs of $72,000
and fixed overhead costs of $64,000. The company incurred overhead costs of $122,800 while operating
at a volume of 40,000 units. The total controllable cost variance is:
A. $1,200 favorable.
B. $1,200 unfavorable.
C. $13,200 favorable.
D. $13,200 unfavorable.
E. $15,200 favorable.
2. Adams Co. uses the following standard to produce a single unit of its product: variable overhead (2 hrs.
@ $3/hr.) $6. Actual data for the month show variable overhead costs of $150,000, and 24,000 units
produced. The total variable overhead variance is:
A. $6,000F.
B. $6,000U.
C. $78,000U.
D. $78,000F.
E. $0.
3. Montaigne Corp. has the following information about its standards and production activity for November.

Actual total factory overhead incurred………………………	$ 28,175
Standard factory overhead: variable overhead………………	$3.10 per unit produced
Fixed overhead($12,000/6,000 estimated units to be produced)	$2 per unit 
Actual units produced…………………………………………	4,800 units

The volume variance is:
A. $1,295U.
B. $1,295F.
C. $2,400U.
D. $2,400F.
E. $3,695U.
4. Montaigne Corp. has the following information about its standards and production activity 

Actual total factory overhead incurred………………………	$ 28,175
Standard factory overhead: variable overhead………………	$3.10 per unit produced
Fixed overhead($12,000/6,000 estimated units to be produced)	$2 per unit 
Actual units produced…………………………………………	4,800 units

for November.
The controllable variance is:
A. $1,295U.
B. $1,295F.
C. $2,400U.
D. $2,400F.
E. $3,695U.
5. Regarding overhead costs, as volume increases:
A. Unit fixed cost increases, unit variable cost decreases.
B. Unit fixed cost decreases, unit variable cost increases.
C. Unit variable cost decreases, unit fixed cost remains constant.
D. Unit fixed cost decreases, unit variable cost remains constant.
E. Both unit fixed cost and unit variable cost remain constant.





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