09 - Ch 9 Extra Problems 1

pdf

School

Los Angeles Southwest College *

*We aren’t endorsed by this school

Course

COST ACCOU

Subject

Accounting

Date

Apr 3, 2024

Type

pdf

Pages

Uploaded by BrigadierWren1173

Direct cost variances - Entity Co [Fact Pattern #1] Entity Co. has the following standards costs for a unit of its product: Direct materials (50 liters × $3.00 per liter) $150 Direct labor (4 hours × $15 per hour) 60 Total overhead (4 hours × $9 per hour) 36 Total standard unit cost $246 The budgeted variable overhead rate is $5 per direct labor hour, and the budgeted fixed overhead is $32,000 per month. During September, Entity produced 2,100 units. (Normal capacity was 2,000 units.) The following are actual unit costs: Direct materials (purchased and used) -- 48 liters at $3.10 per liter $148.80 Direct labor -- 3.8 hours at $16 per hour 60.80 Overhead -- $79,800 for 2,100 units 38.00 Total actual unit cost $247.60 [1] ( Refers to Fact Pattern 1 ) The materials price variance is A. $9,600 unfavorable. B. $10,080 favorable. C. $10,500 unfavorable. D. $10,080 unfavorable. [2] ( Refers to Fact Pattern 1 ) The materials quantity variance is A. $7,980 unfavorable. B. $12,600 favorable. C. $10,080 unfavorable. D. $10,080 favorable. [3] ( Refers to Fact Pattern 1 ) The labor rate variance is A. $12,600 favorable. B. $5,800 unfavorable. C. $7,980 unfavorable. D. $2,100 unfavorable. © 2019 Gleim Publications Inc. Direct cost variances - Entity Co 1

[4] ( Refers to Fact Pattern 1 ) The flexible budget overhead variance is A. $5,800 unfavorable. B. $12,600 unfavorable. C. $3,360 unfavorable. D. $7,980 unfavorable. © 2019 Gleim Publications Inc. Direct cost variances - Entity Co 2

Direct labor variances - Noth [Fact Pattern #1] The standard direct labor cost to produce 1 pound of output for Noth Company is presented below. Related data regarding the planned and actual production activities for the current month for the company are also given below. (DLH = Direct Labor Hours) Direct Labor Standard: .4 DLH @ $12.00 per DLH Planned production 15,000 pounds Actual production 15,500 pounds Actual direct labor costs (6,250 DLH) $75,250 [1] ( Refers to Fact Pattern 1 ) Noth Company’s direct labor rate variance for the current month would be A. $10 unfavorable. B. $240 unfavorable. C. $248 unfavorable. D. $250 unfavorable. [2] ( Refers to Fact Pattern 1 ) Noth Company’s direct labor efficiency variance for the current month would be A. $600 unfavorable. B. $602 unfavorable. C. $2,400 unfavorable. D. $3,000 unfavorable. © 2019 Gleim Publications Inc. Direct labor variances - Noth 1

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

OH variances - Able [Fact Pattern #1] Able Control Company, which manufactures electrical switches, uses a standard-cost system and carries all inventory at standard. The standard factory overhead costs per switch are based on direct labor hours and are shown below. Variable overhead (5 hours at $8.00 per hour) $ 40 Fixed overhead (5 hours at $12.00* per hour) 60 Total overhead $100 *Based on capacity of 300,000 direct labor hours per month. The following information is available for the month of October: 56,000 switches were produced although 60,000 switches were scheduled to be produced. 275,000 direct labor hours were worked at a total cost of $2,550,000. Variable overhead costs were $2,340,000. Fixed overhead costs were $3,750,000. [1] ( Refers to Fact Pattern 1 ) The fixed overhead spending variance for October was A. $48,000 unfavorable. B. $150,000 unfavorable. C. $300,000 favorable. D. $390,000 unfavorable. [2] ( Refers to Fact Pattern 1 ) The variable overhead spending variance for October was A. $60,000 favorable. B. $110,000 unfavorable. C. $100,000 unfavorable. D. $140,000 unfavorable. [3] ( Refers to Fact Pattern 1 ) The variable overhead efficiency variance for October was A. $40,000 favorable. B. $60,000 favorable. C. $160,000 unfavorable. D. $210,000 unfavorable. © 2019 Gleim Publications Inc. OH variances - Able 1

OH variances - Nanjones [Fact Pattern #1] Nanjones Company manufactures a line of products distributed nationally through wholesalers. Presented below are planned manufacturing data for the year and actual data for November of the current year. The company applies overhead based on planned machine hours using a predetermined annual rate. Planning Data Annual November Fixed overhead $1,200,000 $100,000 Variable overhead $2,400,000 $220,000 Direct labor hours 48,000 4,000 Machine hours 240,000 22,000 Data for November Direct labor hours (actual) 4,200 Direct labor hours (plan based on output) 4,000 Machine hours (actual) 21,600 Machine hours (plan based on output) 21,000 Fixed overhead $101,200 Variable overhead $214,000 [1] ( Refers to Fact Pattern 1 ) The predetermined manufacturing overhead application rate for Nanjones Company is A. $5.00 B. $25.00 C. $50.00 D. $15.00 [2] ( Refers to Fact Pattern 1 ) Nanjones Company’s total amount of manufacturing overhead applied to production for November was A. $315,200 B. $315,000 C. $300,000 D. $324,000 [3] ( Refers to Fact Pattern 1 ) Nanjones Company’s amount of over- or underapplied variable manufacturing overhead for November was A. $6,000 overapplied. B. $4,000 underapplied. C. $20,000 overapplied. D. $6,000 underapplied. © 2019 Gleim Publications Inc. OH variances - Nanjones 1

[4] ( Refers to Fact Pattern 1 ) Nanjones Company’s variable manufacturing overhead spending variance for November was A. $2,000 favorable. B. $6,000 favorable. C. $14,000 unfavorable. D. $6,000 unfavorable. [5] ( Refers to Fact Pattern 1 ) Nanjones Company’s fixed manufacturing overhead volume variance for November 2003 was A. $1,200 unfavorable. B. $5,000 unfavorable. C. $5,000 favorable. D. $1,200 favorable. © 2019 Gleim Publications Inc. OH variances - Nanjones 2

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

OH variances - Franklin [Fact Pattern #1] Franklin Glass Works’ production budget for the year ended November 30 was based on 200,000 units. Each unit requires 2 standard hours of labor for completion. Total overhead was budgeted at $900,000 for the year, and the fixed overhead rate was estimated to be $3.00 per unit. Both fixed and variable overhead are assigned to the product on the basis of direct labor hours. The actual data for the year ended November 30 are presented as follows. Actual production in units 198,000 Actual direct labor hours 440,000 Actual variable overhead $352,000 Actual fixed overhead $575,000 [1] ( Refers to Fact Pattern 1 ) How many standard hours were allowed for actual production for the year? A. 247,500 B. 396,000 C. 400,000 D. 495,000 [2] ( Refers to Fact Pattern 1 ) Franklin’s variable overhead efficiency variance for the year is A. $33,000 unfavorable. B. $35,520 favorable. C. $66,000 unfavorable. D. $33,000 favorable. [3] ( Refers to Fact Pattern 1 ) Franklin’s variable overhead spending variance for the year is A. $20,000 unfavorable. B. $19,800 favorable. C. $22,000 unfavorable. D. $20,000 favorable. [4] ( Refers to Fact Pattern 1 ) Franklin’s fixed overhead spending variance for the year is A. $19,000 favorable. B. $25,000 favorable. C. $5,750 favorable. D. $19,000 unfavorable. © 2019 Gleim Publications Inc. OH variances - Franklin 1

[5] ( Refers to Fact Pattern 1 ) The fixed overhead applied to Franklin’s production for the year is A. $484,200 B. $575,000 C. $594,000 D. $600,000 [6] ( Refers to Fact Pattern 1 ) Franklin’s fixed overhead volume variance for the year is A. $6,000 unfavorable. B. $19,000 favorable. C. $25,000 favorable. D. $55,000 unfavorable. © 2019 Gleim Publications Inc. OH variances - Franklin 2