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Hurren corporation makes a product with the following standard costs

19/03/2021 Client: saad24vbs Deadline: 2 Day

1. A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours. The company's choice of the denominator level of activity affects the Variable component of the predetermined overhead rate.

True

False

2. The budget variance represents the difference between the actual fixed manufacturing overhead cost incurred during a period and the budgeted fixed manufacturing overhead cost.

True

False

3. A volume variance and an efficiency variance are computed for fixed manufacturing overhead costs.

True

False

4. At the end of the year, actual manufacturing overhead costs were $210,000 and applied manufacturing overhead costs were $146,400. If the denominator activity for the year was 20,000 machine-hours, and if 24,000 standard machine-hours were allowed for the year's production, the predetermined overhead rate per machine-hour was: (Round your answer to 2 decimal places.)

$6.65

$6.10

$9.00

$9.50

5. Tidd Corporation makes a product with the following standard costs:

Inputs

Standard Quantity or Hours

Standard Price or Rate

Standard Cost Per Unit

Direct materials

4.5 grams

$5.00 per gram

$22.50

Direct labor

0.7 hours

$11.00 per hour

$7.70

Variable overhead

0.7 hours

$5.00 per hour

$3.50

The company reported the following results concerning this product in November.

Originally budgeted output

9,600

units

Actual output

9,700

units

Raw materials used in production

44,800

grams

Purchases of raw materials

47,290

grams

Actual direct labor-hours

7,860

hours

Actual cost of raw materials purchases

$132,430

Actual direct labor cost

$125,123

Actual variable overhead cost

$29,896

The company applies variable overhead on the basis of direct labor-hours. The direct materials price variance is computed when the materials are purchased.

The variable overhead efficiency variance for November is:

$5,350 U

$5,350 F

$6,099 F

$6,099 U

6. Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires three standard hours of direct labor for completion. The denominator activity for the year was based on budgeted production of 230,000 units. Total overhead was budgeted at $930,000 for the year, and the fixed manufacturing overhead rate was $1.20 per direct labor-hour. The actual data pertaining to the manufacturing overhead for the year are presented

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