Thinnews Co., uses machine hours to allocate manufacturing overhead cost to outputs: Actual total overhead cost incurred Actual fixed overhead cost incurred Budgeted fixed overhead cost Actual machine hours Standard machine hours allowed for the units manufactured Denominator level - machine hours Standard variable overhead rate per machine hour 17) What is variable overhead spending variance? $960 favorable A) B) $1,000 favorable C) $1,200 favorable D) $1,400 unfavorable 18) What is variable overhead efficiency variance? $560 unfavorable A) $600 unfavorable B) C) D) 19) What is fixed overhead spending variance? $1,300 unfavorable $1,000 favorable A) B) C) D) $1,500 favorable $2,100 unfavorable $900 unfavorable $800 favorable $ 24,000 $ 10,200 $ 11,000 5,000 4,300 5,500 $ 3.00

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Answer questions 17-20 using the information below:
Thinnews Co., uses machine hours to allocate manufacturing overhead cost to outputs:
Actual total overhead cost incurred
Actual fixed overhead cost incurred
Budgeted fixed overhead cost
Actual machine hours
Standard machine hours allowed for the units manufactured
Denominator level-machine hours
Standard variable overhead rate per machine hour
17) What is variable overhead spending variance?
$960 favorable
A)
B)
$1,000 favorable
C)
$1,200 favorable
D)
$1,400 unfavorable
18) What is variable overhead efficiency variance?
A)
B)
C)
D)
$560 unfavorable
$600 unfavorable
A)
B)
C)
D)
$1,500 favorable
$2,100 unfavorable
19) What is fixed overhead spending variance?
$1,300 unfavorable
$1,000 favorable
$900 unfavorable
$800 favorable
20) What is production volume variance?
A) $1,000 unfavorable
B)
$1,400 unfavorable
C)
$2,400 unfavorable
D)
$3,600 unfavorable
$ 24,000
$ 10,200
$
11,000
5,000
4,300
5,500
$ 3.00
Transcribed Image Text:Answer questions 17-20 using the information below: Thinnews Co., uses machine hours to allocate manufacturing overhead cost to outputs: Actual total overhead cost incurred Actual fixed overhead cost incurred Budgeted fixed overhead cost Actual machine hours Standard machine hours allowed for the units manufactured Denominator level-machine hours Standard variable overhead rate per machine hour 17) What is variable overhead spending variance? $960 favorable A) B) $1,000 favorable C) $1,200 favorable D) $1,400 unfavorable 18) What is variable overhead efficiency variance? A) B) C) D) $560 unfavorable $600 unfavorable A) B) C) D) $1,500 favorable $2,100 unfavorable 19) What is fixed overhead spending variance? $1,300 unfavorable $1,000 favorable $900 unfavorable $800 favorable 20) What is production volume variance? A) $1,000 unfavorable B) $1,400 unfavorable C) $2,400 unfavorable D) $3,600 unfavorable $ 24,000 $ 10,200 $ 11,000 5,000 4,300 5,500 $ 3.00
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