111.What is the amount of the variable factory overhead controllable variance?
a.$12,000 unfavorable
b.$12,000 favorable
c.$14,000 unfavorable
d.$26,000 unfavorable
112.Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a
a.quantity variance
b.controllable variance
c.volume variance
d.rate variance
113.The controllable variance measures
a.operating results at less than normal capacity
b.the efficiency of using variable overhead resources
c.operating results at more than normal capacity
d.control over fixed overhead costs
114.The unfavorable volume variance may be due to all of the following factors
except
a.failure to maintain an even flow of work
b.machine breakdowns
c.unexpected increases in the cost of utilities
d.failure to obtain enough sales orders
115.Favorable volume variances may be harmful when
a.machine repairs cause work stoppages
b.supervisors fail to maintain an even flow of work
c.production in excess of normal capacity cannot be sold
d.all of the answers are correct
116.The following data is given for the Bahia Company:
Budgeted production
|
1,000 units
|
Actual production
|
980 units
|
Materials:
|
|
Standard price per pound
|
$2.00
|
Standard pounds per completed unit
|
12
|
Actual pounds purchased and used in production
|
11,800
|
Actual price paid for materials
|
$23,000
|
Labor:
|
|
Standard hourly labor rate
|
$14 per hour
|
Standard hours allowed per completed unit
|
4.5
|
Actual labor hours worked
|
4,560
|
Actual total labor costs
|
$62,928
|
Overhead:
|
|
Actual and budgeted fixed overhead
|
$27,000
|
Standard variable overhead rate
|
$3.50 per standard direct labor hour
|
Actual variable overhead costs
|
$15,500
|
Overhead is applied on standard labor hours.
The fixed factory overhead controllable variance is
a.$65 unfavorable
b.$65 favorable
c.$540 unfavorable
d.$540 favorable
117.The following data is given for the Bahia Company:
Budgeted production (at 100% of normal capacity)
|
1,000 units
|
Actual production
|
980 units
|
Materials:
|
|
Standard price per pound
|
$2.00
|
Standard pounds per completed unit
|
12
|
Actual pounds purchased and used in production
|
11,800
|
Actual price paid for materials
|
$23,000
|
Labor:
|
|
Standard hourly labor rate
|
$14 per hour
|
Standard hours allowed per completed unit
|
4.5
|
Actual labor hours worked
|
4,560
|
Actual total labor costs
|
$62,928
|
Overhead:
|
|
Actual and budgeted fixed overhead
|
$27,000
|
Standard variable overhead rate
|
$3.50 per standard labor hour
|
Actual variable overhead costs
|
$15,500
|
Overhead is applied on standard labor hours.
The fixed factory overhead volume variance is
a.$65 unfavorable
b.$65favorable
c.$540 unfavorable
d.$540 favorable
The following data is given for the Zoyza Company:
Budgeted production (at 100% of normal capacity)
|
26,000 units
|
Actual production
|
27,500 units
|
Materials:
|
|
Standard price per ounce
|
$6.50
|
Standard ounces per completed unit
|
8
|
Actual ounces purchased and used in production
|
228,000
|
Actual price paid for materials
|
$1,504,800
|
Labor:
|
|
Standard hourly labor rate
|
$22 per hour
|
Standard hours allowed per completed unit
|
6.6
|
Actual labor hours worked
|
183,000
|
Actual total labor costs
|
$4,020,000
|
Overhead:
|
|
Actual and budgeted fixed overhead
|
$1,029,600
|
Standard variable overhead rate
|
$24.50 per standard labor hour
|
Actual variable overhead costs
|
$4,520,000
|
Overhead is applied on standard labor hours.
118.The fixed factory overhead controllable variance is
a.$73,250 favorable
b.$73,250 unfavorable
c.$59,400 favorable
d.$59,400 unfavorable
119.The fixed factory overhead volume variance is
a.$73,250 unfavorable
b.$73,250 favorable
c.$59,400 favorable
d.$59,400 unfavorable
The St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at 100% normal productioncapacity. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit.The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000 and actual variable overheadwas $170,000. Actual production was 11,700 units.
120.The fixed factory overhead controllable variance is
a.$9,000 favorable
b.$9,000 unfavorable
c.$5,500 favorable
d.$5,500 unfavorable