Hours fixed overhead cost for march 244000 240000 3

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Accounting
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Chapter 23 / Exercise 8
Accounting
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6,000 hours Fixed overhead cost for March $244,000 $240,000 3) Fixed overhead is: A) overallocated by $4,000 B) underallocated by $4,000 C) overallocated by $44,000 D) underallocated by $44,000 Answer: Explanation: D) $244,000 - [10,000 × (6,000/12,000) × $40.00] = $44,000 underallocated D Diff: 3
Terms: production-volume variance Objective: 4 AACSB: Analytical skills Russo Corporation manufactured 16,000 air conditioners during November. The overhead cost- allocation base is $31.50 per machine-hour. The following variable overhead data pertain to November: Actual Budgeted Production 16,000 units 18,000 units Machine-hours 7,875 hours 9,000 hours Variable overhead cost per machine-hour: $31.00 $31.50 4) What is the actual variable overhead cost? A Diff: 1
Terms: variable overhead flexible-budget variance Objective: 3 AACSB: Analytical skills 5) What is the flexible-budget amount?
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Accounting
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Chapter 23 / Exercise 8
Accounting
Reeve/Warren
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B Diff: 3
Terms: variable overhead flexible-budget variance Objective: 3 AACSB: Analytical skills 6) What is the variable overhead spending variance? D
Diff: 3 Terms: variable overhead spending variance Objective: 3 AACSB: Analytical skills 7) What is the variable overhead efficiency variance? A) $3,937.50 favorable B) $3,937.50 unfavorable C) $4,500 favorable D) $4,500 unfavorable Answer: Explanation: A) [7,875 - (16,000 × 9,000/18,000) mh] × $31.00 = $3,937.50 favorable A Diff: 3
Terms: variable overhead efficiency variance Objective: 3 AACSB: Analytical skills

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