Based on capacity of 200000 direct manufacturing

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Week1_Quiz_ACCT349.docx

Question 1   6 / 6 pts ( TCO 10 ) Which of the following statements is true about overhead cost variance analysis using activity - based costing ?
 Overhead cost variances are calculated for output - unit level costs only .
 Overhead cost variances are calculated for variable manufacturing overhead costs only .
 A 4 - variance analysis can be conducted .
 Activity - based costing uses input measures for all activities , resulting in the inability to do flexible budgets needed for variance analysis .
Question 2   6 / 6 pts ( 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 variable manufacturing overhead efficiency variance for December was $ 50,000 U $ 350,000 U
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Question 3   6 / 6 pts ( 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 4   6 / 6 pts ( TCO 10 ) The following information is for Pappillon Corporation ’s variable manufacturing overhead costs last month : favorable flexible - budget variance of $ 3,000 , unfavorable efficiency variance of $ 2,500 . The spending variance is
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Question 5   6 / 6 pts ( TCO 10 ) If variable overhead is underallocated , this means the flexible - budget variance for variable overhead is unfavorable .
 False
Answer:     True
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. The variable manufacturing overhead efficiency variance for December was$50,000 U$350,000 U
Question 36 / 6 pts(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) $ 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.

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