Exercise 2) After reading chapter 15 test your conceptual knowledge for the material presented in the...
Exercise 2) After reading chapter 15 test your conceptual knowledge for the material presented in the chapter
a.The difference between total factory overhead cost incurred during a period and the total standard factory overhead cost assigned to production of the period is the ______________:
Multiple Choice
-
Flexible-budget variance
-
Production-volume variance
-
Total factory overhead variance
-
Overhead efficiency variance
-
Total overhead spending variance
b.The difference between the total actual overhead cost incurred
during a period and budgeted total factory overhead cost for the
actual quantity of the cost driver used to apply overhead is equal
to the:
Multiple Choice
-
Total overhead spending variance.
-
Total overhead efficiency variance.
-
Factory overhead production-volume variance.
-
Total overhead rate variance.
-
Total overhead variance.
Homework Answers
Answer
1.
Total factory overhead variance is the difference between total factory overhead cost incurred during a period and the total standard factory overhead cost assigned to production of the period.
Option C is Correct.
2.
Total overhead variance is the difference between the total actual overhead cost incurred during a period and budgeted total factory overhead cost for the actual quantity of the cost driver used to apply overhead.
Option D is correct.
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Exercise 2) After reading chapter 15 test your conceptual
knowledge for the material presented in the...
Exercise 1) After reading chapter 15 test your conceptual knowledge for the material presented in the...
Exercise 1) After reading chapter 15 test your conceptual knowledge for the material presented in the chapter a. Finding a single cost driver that changes in the same proportion as variable factory overhead costs is: Multiple Choice Simplified by breaking out the fixed portion of overhead cost. The first step in variable overhead cost assignment. Difficult but manageable using advanced statistical techniques. An important goal of effective cost system design. Difficult, if not impossible, because of the underlying nature of variable...
The difference between the total actual overhead cost incurred during a period and budgeted total factory...
The difference between the total actual overhead cost incurred during a period and budgeted total factory overhead cost for the actual quantity of the cost driver used to apply overhead is equal to the: Multiple Choice A: Total overhead spending variance. B: Total overhead efficiency variance. C: Factory overhead production-volume variance. D: Total overhead rate variance. E: Total overhead variance.
1.) When there is a standard batch size for production activity: Multiple Choice: (A) A modification...
1.) When there is a standard batch size for production activity: Multiple Choice: (A) A modification of the traditional approach to constructing the flexible budget for control purposes allows for a more detailed analysis of batch-related overhead costs. (B) It is not possible to construct a flexible budget for cost-control purposes. (C.) Standard cost variances for only the variable portion of batch-related manufacturing overhead costs can be calculated. (D) The variable portion of the total flexible-budget variance for batch-related costs...
Assume that machine hours is the cost driver for overhead. The difference between the actual variable...
Assume that machine hours is the cost driver for overhead. The difference between the actual variable overhead incurred and the applied variable overhead is the: Select one: a. spending variance. b. volume variance. c. efficiency variance. d. sum of the spending and efficiency variances. e. production variance.
Walkenhorst Company's machining department prepared its 2019 budget based on the following data: 40,000 units 2...
Walkenhorst Company's machining department prepared its 2019 budget based on the following data: 40,000 units 2 Practical capacity Standard machine hours per unit Standard variable factory overhead Budgeted fixed factory overhead $3.00 per machine hour $424,000 The department uses machine hours to apply factory overhead to production. In 2019, the department used 85,800 machine hours and incurred $689,000 in total manufacturing overhead cost to manufacture 42,070 units. Actual fixed overhead cost for the year was $437,000. Required: Determine for the...
Overhead information for Cran-Mar Company for October follows: $16,500 $4,900 Total factory overhead cost incurred Budgeted...
Overhead information for Cran-Mar Company for October follows: $16,500 $4,900 Total factory overhead cost incurred Budgeted fixed factory overhead cost Total standard overhead rate per machine hour (MH) 4.99 Standard variable factory overhead rate per MH 3.90 Standard MHs allowed for the units manufactured 4, 700 Required: 1. What is the standard fixed factory overhead rate per machine hour (MH)? 2. What is the denominator activity level that was used to establish the fixed factory overhead application rate? 3. Two-way...
Under a two-variance breakdown (decomposition) of the total factory overhead variance, the fixed overhead production volume...
Under a two-variance breakdown (decomposition) of the total
factory overhead variance, the fixed overhead production volume
variance, to the nearest whole dollar, is:
Multiple Choice
$400 favorable.
$600 unfavorable.
$1,400 favorable.
$1,400 unfavorable.
$2,000 favorable.
b.
Under a two-variance breakdown (decomposition) of the total
factory overhead variance, the total flexible-budget variance, to
the nearest whole dollar, is:
Multiple Choice
$400 favorable.
$600 unfavorable.
$1,400 favorable.
$1,400 unfavorable.
$2,000 favorable.
The following information for the past year is available from Thinnews...
Walkenhorst Company’s machining department prepared its 2019 budget based on the following data: Practical capacity 40,000...
Walkenhorst Company’s machining department prepared its 2019 budget based on the following data: Practical capacity 40,000 units Standard machine hours per unit 2 Standard variable factory overhead $3.00 per machine hour Budgeted fixed factory overhead $ 376,000 The department uses machine hours to apply factory overhead to production. In 2019, the department used 85,200 machine hours and incurred $637,000 in total manufacturing overhead cost to manufacture 42,010 units. Actual fixed overhead cost for the year was $386,000. Required: Determine for...
Walkenhorst Company's machining department prepared its 2019 budget based on the following data: Practical capacity Standard...
Walkenhorst Company's machining department prepared its 2019 budget based on the following data: Practical capacity Standard machine hours per unit Standard variable factory overhead Budgeted fixed factory overhead 40,000 units 2 $3.00 per machine hour $352,000 The department uses machine hours to apply factory overhead to production. In 2019, the department used 87,000 machine hours and incurred $619,000 in total manufacturing overhead cost to manufacture 42,190 units. Actual fixed overhead cost for the year was $371,000. Required: Determine for the...
Walkenhorst Company's machining department prepared its 2019 budget based on the following data: 40,000 units Practical...
Walkenhorst Company's machining department prepared its 2019 budget based on the following data: 40,000 units Practical capacity Standard machine hours per unit Standard variable factory overhead Budgeted fixed factory overhead $3.00 per machine hour $368,000 The department uses machine hours to apply factory overhead to production. In 2019, the department used 88,000 machine hours and incurred $636,000 in total manufacturing overhead cost to manufacture 43,000 units. Actual fixed overhead cost for the year was $380,000. Required: Determine for the year:...
Walkenhorst Company's machining department prepared its 2019 budget based on the following data: 40,000 units 2 Practical capacity Standard machine hours per unit Standard variable factory overhead Budgeted fixed factory overhead $3.00 per machine hour $424,000 The department uses machine hours to apply factory overhead to production. In 2019, the department used 85,800 machine hours and incurred $689,000 in total manufacturing overhead cost to manufacture 42,070 units. Actual fixed overhead cost for the year was $437,000. Required: Determine for the...
Overhead information for Cran-Mar Company for October follows: $16,500 $4,900 Total factory overhead cost incurred Budgeted fixed factory overhead cost Total standard overhead rate per machine hour (MH) 4.99 Standard variable factory overhead rate per MH 3.90 Standard MHs allowed for the units manufactured 4, 700 Required: 1. What is the standard fixed factory overhead rate per machine hour (MH)? 2. What is the denominator activity level that was used to establish the fixed factory overhead application rate? 3. Two-way...
Under a two-variance breakdown (decomposition) of the total
factory overhead variance, the fixed overhead production volume
variance, to the nearest whole dollar, is:
Multiple Choice
$400 favorable.
$600 unfavorable.
$1,400 favorable.
$1,400 unfavorable.
$2,000 favorable.
b.
Under a two-variance breakdown (decomposition) of the total
factory overhead variance, the total flexible-budget variance, to
the nearest whole dollar, is:
Multiple Choice
$400 favorable.
$600 unfavorable.
$1,400 favorable.
$1,400 unfavorable.
$2,000 favorable.
The following information for the past year is available from Thinnews...
Walkenhorst Company's machining department prepared its 2019 budget based on the following data: Practical capacity Standard machine hours per unit Standard variable factory overhead Budgeted fixed factory overhead 40,000 units 2 $3.00 per machine hour $352,000 The department uses machine hours to apply factory overhead to production. In 2019, the department used 87,000 machine hours and incurred $619,000 in total manufacturing overhead cost to manufacture 42,190 units. Actual fixed overhead cost for the year was $371,000. Required: Determine for the...
Walkenhorst Company's machining department prepared its 2019 budget based on the following data: 40,000 units Practical capacity Standard machine hours per unit Standard variable factory overhead Budgeted fixed factory overhead $3.00 per machine hour $368,000 The department uses machine hours to apply factory overhead to production. In 2019, the department used 88,000 machine hours and incurred $636,000 in total manufacturing overhead cost to manufacture 43,000 units. Actual fixed overhead cost for the year was $380,000. Required: Determine for the year:...
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