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
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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