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M8

The document provides information about variances for overhead costs, including fixed overhead budget variances, variable overhead spending variances, volume variances, and total overhead variances for multiple companies. It also provides information about a company that produces toy cars in batches, including that some setup overhead costs are variable and some are fixed with respect to the number of setup hours. Actual and budgeted amounts are given for units produced, batch size, setup hours, fixed setup costs, and variable setup costs.

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Kendrew Sujide
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137 views1 page

M8

The document provides information about variances for overhead costs, including fixed overhead budget variances, variable overhead spending variances, volume variances, and total overhead variances for multiple companies. It also provides information about a company that produces toy cars in batches, including that some setup overhead costs are variable and some are fixed with respect to the number of setup hours. Actual and budgeted amounts are given for units produced, batch size, setup hours, fixed setup costs, and variable setup costs.

Uploaded by

Kendrew Sujide
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Volume Variance 50. Katrina Inc.

had a $30,000 favorable fixed overhead budget variance, a $44,000


unfavorable variable overhead spending variance, and $44,000 total underapplied overhead. The
volume variance was (E) a. $30,000 overapplied. c. $58,000 overapplied. b. $30,000 underapplied. d.
$58,000 underapplied. L & H 10e 33. Acme had a $6,000 favorable fixed overhead budget variance, a
$2,500 unfavorable variable overhead spending variance, and $1,000 total overapplied overhead. The
volume variance was (E) a. $4,500 overapplied. c. $2,500 overapplied. b. $4,500 underapplied. d. $2,500
underapplied. L & H 10e 142.Acme had a P22,000 favorable fixed overhead budget variance, a P15,000
unfavorable variable overhead spending variance, and P2,000 total overapplied overhead. The volume
variance was a. P13,000 overapplied c. P5,000 overapplied b. P13,000 underapplied d. P5,000
underapplied Pol Bobadilla Comprehensive Questions 38 through 41 are based on the following
information. D, L & H 9e Alcatraz Company uses the equation $400,000 + $1.75 per direct labor hour to
budget manufacturing overhead. Alcatraz has budgeted 125,000 direct labor hours for the year. Actual
results were 110,000 direct labor hours, $397,000 fixed overhead, and $194,500 variable overhead. 38.
The total overhead variance for the year is (M) a. $2,000 c. $47,000 b. $3,000 d. $48,000 39. The variable
overhead spending variance for the year is (M) a. $2,000 c. $47,000 b. $3,000 d. $48,000 40. The fixed
overhead budget variance for the year is (E) a. $2,000 c. $47,000 b. $3,000 d. $48,000 41. The fixed
overhead volume variance for the year is (M) a. $2,000 c. $47,000 b. $3,000 d. $48,000 Questions 44
through 47 are based on the following information. D, L & H 9e Hughes Company uses the equation
$375,000 + $1.20 per direct labor hour to budget manufacturing overhead. Hughes had budgeted
75,000 direct labor hours for the year. Actual results were 81,000 direct labor hours, $397,000 fixed
overhead, and $94,500 variable overhead. 44. The total overhead variance for the year is (M) a. $2,700
c. $22,000 b. $10,700 d. $30,000 45. The variable overhead spending variance for the year is (M) a.
$2,700 c. $22,000 b. $10,700 d. $30,000 46. The fixed overhead budget variance for the year is (E) a.
$2,700 c. $22,000 b. $10,700 d. $30,000 47. The fixed overhead volume variance for the year is (M) a.
$1,400 c. $15,600 b. $13,000 d. $30,000 ACTIVITY-BASED COSTING Questions 116 thru 120 are based on
the following information. Horngren Munoz, Inc. produces a special line of plastic toy racing cars.
Munoz, Inc. produces the cars in batches. To manufacture a batch of the cars, Munoz, Inc. must set up
the machines and molds. Setup costs are batch-level costs because they are associated with batches
rather than individual units of products. A separate Setup Department is responsible for setting up
machines and molds for different styles of car. Setup overhead costs consist of some costs that are
variable and some costs that are fixed with respect to the number of setup-hours. The following
information pertains to June 2004. Actual Amounts Static-budget Amounts Units produced and sold
15,000 11,250 Batch size

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