121. The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows:
Actual:
|
Variable factory overhead
|
$360,000
|
|
Fixed factory overhead
|
104,000
|
Standard hours allowed for units produced:
|
60,000 hours at $7.50
|
450,000
|
|
|
|
What is the amount of the factory overhead volume variance?
A. $12,000 unfavorable
B. $12,000 favorable
C. $14,000 unfavorable
D. $26,000 unfavorable
122. The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows:
Actual:
|
Variable factory overhead
|
$360,000
|
|
Fixed factory overhead
|
104,000
|
Standard hours allowed for units produced:
|
60,000 hours at $7.50
|
450,000
|
|
|
|
What is the amount of the factory overhead controllable variance?
A. $12,000 unfavorable
B. $12,000 favorable
C. $14,000 unfavorable
D. $26,000 unfavorable
123. 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
124. 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
125. The unfavorable volume variance may be due to all but the following factors:
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
126. 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. there are insufficient sales orders to keep the factory operating at normal capacity
127. The following data is given for the Bahia Company:
Budgeted production
|
1,000 units
|
Actual production
|
980 units
|
Materials:
|
|
Standard price per lb
|
$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 factory overhead controllable variance is:
65U
B. 65F
C. 540U
D. 540F
128. The following data is given for the Bahia Company:
Budgeted production
|
1,000 units
|
Actual production
|
980 units
|
Materials:
|
|
Standard price per lb
|
$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 factory overhead volume variance is:
A. 65U
B. 65F
540U
D. 540F
129. The following data is given for the Zoyza Company:
Budgeted production
|
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.
The factory overhead controllable variance is:
A. 73,250F
73,250U
C. 59,400F
D. 59,400U
130. The following data is given for the Zoyza Company:
Budgeted production
|
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.
The factory overhead volume variance is:
A. 73,250U
B. 73,250F
59,400F
D. 59,400U