46000 switches were produced although 40000 switches

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ACCT434 Quiz Week 1

1 .   Question : ( TCO 10 ) In selecting a cost allocation base for variable overhead , what criteria for the base is preferred ?
 Student Answer : Ease of acquiring reliable information for accurate allocations
 A cause - and - effect relationship between the cost and the activity level A single base that will simplify the allocation process
 One that has been used in the past
 <p>A cause-and-effect relationship between the cost and the activity level as a base for cost allocation is preferred because of its objectivity and acceptance by operating management.</p>
Answer:     <p>A cause-and-effect relationship between the cost and the activity level as a base for cost allocation is preferred because of its objectivity and acceptance by operating management.</p>
Question 2.   : ( TCO 10 ) Sebastian Company , which manufactures electrical switches , uses a standard cost system and carries all inventories at standard . The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below : Variable overhead ( 5 hours at $ 12 per direct manufacturing labor hour ) $ 60 Fixed overhead ( 5 hours at $ 15 per direct manufacturing labor hour , based on capacity of 200,000 direct manufacturing labor hours per month ) 75 Total overhead per switch $ 135 The following information is available for the month of December :  46,000 switches were produced , although 40,000 switches were scheduled to be produced .  225,000 direct manufacturing labor hours were worked at a total cost of $ 5,625,000 .  Variable manufacturing overhead costs were $ 2,750,000 .  Fixed manufacturing overhead costs were $ 3,050,000 . The total variable manufacturing overhead variance was
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Question 3 .   ( TCO 10 ) Sebastian Company , which manufactures electrical switches , uses a standard cost system and carries all inventories at standard . The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below : Variable overhead ( 5 hours at $ 12 per direct manufacturing labor hour ) $ 60 Fixed overhead ( 5 hours at $ 15 per direct manufacturing labor hour , based on capacity of 200,000 direct manufacturing labor hours per month ) 75 Total overhead per switch $ 135 The following information is available for the month of December :  46,000 switches were produced , although 40,000 switches were scheduled to be produced .  225,000 direct manufacturing labor hours were worked at a total cost of $ 5,625,000 .  Variable manufacturing overhead costs were $ 2,750,000 .  Fixed manufacturing overhead costs were $ 3,050,000 . What amount should be credited to the Allocated Manufacturing Overhead Control account for the month of December ?
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Question 5 .   ( TCO 10 ) Budgeted overhead costs rates can be expressed as an amount per unit of output or per unit of input .
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46,000 switches were produced, although 40,000 switches were scheduled to be produced. 225,000 direct manufacturing labor hours were worked at a total cost of $5,625,000. Variable manufacturing overhead costs were $2,750,000. Fixed manufacturing overhead costs were $3,050,000. The total variable manufacturing overhead variance wasStudent Answer:$10,000 F$10,000 U
$110,000 U$110,000 FInstructor Explanation:Total variable overhead variance = $50,000 U + $60,000 F = $10,000 F.
Question 3.(TCO 10) Sebastian Company, which manufactures electrical switches, uses a standardcost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below:Variable overhead (5 hours at $12 per direct manufacturing labor hour) $ 60Fixed overhead (5 hours at $15 per direct manufacturing labor hour,based on capacity of 200,000 direct manufacturing labor hours per month) 75Total overhead per switch $ 135The following information is available for the month of December: 46,000 switches were produced, although 40,000 switches were scheduled to be produced. 225,000 direct manufacturing labor hours were worked at a total cost of $5,625,000. Variable manufacturing overhead costs were $2,750,000. Fixed manufacturing overhead costs were $3,050,000. What amount should be credited to the Allocated Manufacturing Overhead Control account for the month of December?
Explanation:

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