CH11 - CH.11 1. Mattern Corporation applies manufacturing...

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CH.11 1. Mattern Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual fixed manufacturing overhead costs for the most recent month appear below: The company based its original budget on 6,100 machine-hours. The company actually worked 5,710 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 5,540 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month? A) $4,836 unfavorable B) $4,836 favorable C) $6,944 unfavorable D) $6,944 favorable Feedback: Fixed portion of the predetermined overhead rate = $75,640 6,100 machine-hours = $12.40 per machine-hour Volume variance = Fixed portion of the predetermined overhead rate x (Denominator hours - Standard hours allowed) = $12.40 x (6,100 - 5,540) = $6,944 U 2. The Tate Company uses a standard costing system in which manufacturing overhead is applied on the basis of standard direct labor-hours (DLHs). The company recorded the following costs and activity for September: The amount of fixed manufacturing overhead cost contained in the company's flexible budget for manufacturing overhead for September was:
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A) $61,400 B) $57,000 C) $60,000 D) $58,550 Feedback: Budgeted fixed overhead = 60,000 direct labor-hours x $0.95 = $57,000 3. Jessep Corporation has a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. The company has provided the following data concerning its fixed manufacturing overhead costs in March: The fixed manufacturing overhead budget variance is: A) $1,000 U B) $3,000 U C) $2,000 U D) $2,000 F Feedback: Budget variance = Actual fixed manufacturing overhead cost - Budgeted fixed manufacturing overhead cost = $48,000 - $45,000 = $3,000 U 4. Bullins Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month: What was the fixed manufacturing overhead budget variance for the month? A) $4,000 unfavorable B) $1,440 favorable C) $1,440 unfavorable D) $4,000 favorable 5. The general model for calculating a quantity variance is:
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A) actual quantity of inputs used x (actual price - standard price). B) standard price x (actual quantity of inputs used - standard quantity allowed for output). C) (actual quantity of inputs used at actual price) - (standard quantity allowed for output at standard price). D) actual price x (actual quantity of inputs used - standard quantity allowed for output). 6. A labor efficiency variance resulting from the use of poor quality materials should be charged to: A) the production manager. B) the purchasing agent.
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This note was uploaded on 07/10/2010 for the course ACCOUNTING 222 taught by Professor Cordes during the Spring '10 term at Johnson County Community College.

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CH11 - CH.11 1. Mattern Corporation applies manufacturing...

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