View the step-by-step solution to:

# Beres Corporation has developed the following flexible budget formula for annual indirect labor cost: Total costs = \$9,600 + \$0.

1. Beres Corporation has developed the following flexible budget formula for annual indirect
labor cost:
Total costs = \$9,600 + \$0.75 per machine hour
Operating budgets for the current month are based on 30,000 hours of planned machine
time. The amount of indirect labor costs included in this planned budget is
A. \$2,425.        C. \$23,300.
B. \$22,500.      D. \$32,100.
2. The Johns Company budgeted overhead at \$125,000 for the period for Department A
based on a budgeted volume of 50,000 direct labor hours. At the end of the period, the
factory overhead control account for Department A had a balance of \$126,000. The actual
(and allowed) direct labor hours were 52,000. What was the overapplied (underapplied)
overhead for the period?
A. \$(4,000)      C. \$(6,500)
B. \$4,000         D. \$6,500
3. The fixed overhead application rate is a function of a predetermined normal activity level.
If standard hours allowed for good output equal this normal activity level for a given period,
the volume variance will be
A. zero.
B. favorable.
C. unfavorable.
D. either favorable or unfavorable depending on the budgeted overhead.

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

### -

Educational Resources
• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents