The Adlake Company makes and sells a single product and uses a standard cost

The adlake company makes and sells a single product

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33.The Adlake Company makes and sells a single product and uses a standard cost system.During October, the company budgeted $300,000 in manufacturing overhead cost at adenominator activity of 20,000 machine-hours. At standard, each unit of finished productrequires 5 machine-hours. The following cost and activity were recorded during October:Total actual manufacturing overhead cost incurred$294,000Units of product completed3,800Actual machine-hours worked19,422The amount of overhead cost that the company applied to work in process for October was:(M) a. $279,300.c. $294,000.b. $291,330.d. $285,000.G & N 9e117.Union Company uses a standard cost accounting system. The following factory O/H and production data are available for August?Standard fixed O/H rate per DLH$1Standard variable O/H rate per DLH$4Budgeted monthly DLH40,000Actual DLH worked39,500Standard DLH allowed for actual production39,000Overall O/H variance – favorable$2,000The applied factory O/H for August should be (E) 118.River Company uses a standard-cost accounting system. It applies overhead based on direct labor hours. The following overhead costs and production data are available for March:Standard fixed overhead rate per DLH $1.50Standard variable overhead rate per DLH $5.00Budgeted monthly DLH 30,000Actual DLH worked 28,000Standard DLH allowed for actual production27,500Overall overhead variance -- favorable $2,500What is the applied factory overhead for March? (M) 27.Overhead cost is applied to units based on direct labor hours. For April, total overhead costwas budgeted at $80,000 based on a denominator activity level of 20,000 direct labor hours forthe month. The standard cost card indicates that each unit of finished product requires 2 directlabor-hours. The following data are available for April's activity:Number of units produced 9,500Direct labor hours worked 19,500Actual total overhead cost incurred$79,500What amount of total overhead cost would have been applied to production for the month ofApril? (E) CMA EXAMINATION QUESTIONS Page 40 of 136
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MANAGEMENT ADVISORY SERVICESSTANDARD COSTS AND VARIANCE ANALYSIS 33.The Judd Company uses a standard cost system in which it applies manufacturing overheadto units of product on the basis of machine-hours. During May, the company budgeted$320,000 in manufacturing overhead cost at a denominator activity of 20,000 machine-hours.At standard, each unit of finished product requires 4 machine-hours. The following cost andactivity was recorded during May:Total actual manufacturing overhead cost incurred$335,500Units of product completed4,700Actual machine-hours worked21,000The amount of overhead cost that the company applied to Work in Process for May was: A.$336,000. C.$300,800.B.$335,500. D.$315,370. G & N 10eApplied Fixed Overhead
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