Russo corporation manufactured 17000 air conditioners

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Cornerstones of Cost Management
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Chapter 4 / Exercise 4.1
Cornerstones of Cost Management
Hansen/Mowen
Expert Verified
33) Russo Corporation manufactured 17,000 air conditioners during November. The overhead cost-allocation rate is $35.50 per machine-hour. The following variable overhead data pertain to November:ActualBudgetedProduction17,000 units19,000 unitsMachine-hours8,325 hours9,500 hoursVariable overhead cost per machine-hour:$35.00$35.50What is the variable overhead efficiency variance? A) $6,212.50 favorableB) $6,212.50 unfavorableC) $4,750.00 favorable D) $4,750.00 unfavorableAnswer: Explanation: [8,325 - (17,000 × 9,500/19,000) mh] × $35.50 = $6,212.50 favorable
A
Diff: 3Objective: 3AACSB: Analytical thinking34) Russo Corporation manufactured 21,000 air conditioners during November. The overhead cost-allocation base is $34.50 per machine-hour. The following variable overhead data pertain to November:ActualBudgetedProduction21,000 units23,000 unitsMachine-hours12,700 hours13,800 hoursVariable overhead cost per machine-hour:$34.00$34.50What is the total variable overhead variance?
C
Diff: 3Objective: 3AACSB: Analytical thinking
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Cornerstones of Cost Management
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Chapter 4 / Exercise 4.1
Cornerstones of Cost Management
Hansen/Mowen
Expert Verified
35) The variable overhead efficiency variance is computed ________ and interpreted ________the direct-cost efficiency variance.
BDiff: 2Objective: 3AACSB: Analytical thinking36) Mendel Company makes the following journal entry: Variable Manufacturing Overhead Allocated229,000Variable Manufacturing Overhead Efficiency Variance7,000Variable Manufacturing Overhead Control179,000Variable Manufacturing Overhead Spending Variance57,000Which of the following statements is true of the given journal entry?
DDiff: 2Objective: 3AACSB: Application of knowledge37) The balances in the variable overhead control account and the variable overhead control account are $120,000 and $125,000 respectively. The variable overhead spending variance is $6,000 and the variable overhead efficiency variance is $11,000. Which of the following entries would be required to record the variances in a standard costing system?A) Cost of Goods Sold $5,000Variable Overhead Spending$6,000Variable Overhead Efficiency Variance$11,000B) Work-in-Process$5,000Variable Overhead Spending$6,000Variable Overhead Efficiency Variance$11,000C) Variable Overhead Allocated $120,000Variable Overhead Spending Variance$11,000Variable Overhead Efficiency Variance$6,000Variable Overhead Control$125,000D) Variable Overhead Control$120,000Variable Overhead Spending Variance$11,000Variable Overhead Efficiency Variance$6,000Variable Overhead Allocated$125,000Answer:
CDiff: 2Objective: 3AACSB: Analytical thinking

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