## Web Company uses a standard cost system

41. Web Company uses a standard cost system in which manufacturing overhead is applied to units of

product on the basis of machine-hours. During February, the company used a denominator activity of

80,000 machine-hours in computing its predetermined overhead rate. However, only 75,000 standard

machine-hours were allowed for the month's actual production. If the fixed overhead volume variance for

February was \$6,400 unfavourable, then the total budgeted fixed overhead cost for the month was?

A. \$96,000.

B. \$98,600.

C. \$100,000.

D. \$102,400.

42. The Adlake Company makes and sells a single product and uses a standard cost system. During October,

the company budgeted \$300,000 in manufacturing overhead cost at a denominator activity of 20,000

machine-hours. At standard, each unit of finished product requires 5 machine-hours. The following cost

and activity were recorded during October:

The amount of overhead cost that the company applied to work in process for October was?

A. \$279,300.

B. \$285,000.

C. \$291,330.

D. \$294,000.

43. The predetermined overhead rate (variable and fixed) is \$7.50 per machine-hour and the denominator

activity level is 135,000 machine-hours. If the variable portion of the predetermined overhead rate is

\$3.00 per machine-hours, then the budgeted fixed factory overhead for the year is?

A. \$30,000.

B. \$405,000.

C. \$607,500.

D. \$1,012,500.

44. Mauve Company uses a standard cost system in which it applies manufacturing overhead to units of

product on the basis of direct labour-hours (DLHs). The following data pertain to last month:

The fixed overhead budget variance is:

A. \$300 U.

B. \$300 F.

C. \$400 U.

D. \$500 F.

45. Jaune Company uses a standard cost system in which it applies manufacturing overhead to units of

product on the basis of direct labour-hours (DLHs). The following data pertain to last month's operations:

The fixed overhead budget variance is?

A. \$500 U.

B. \$500 F.

C. \$1,700 U.

D. \$2,200 U.

46. Henley Company uses a standard cost system in which it applies manufacturing overhead to units of

product on the basis of direct labour-hours. For the month of January, the fixed manufacturing overhead

volume variance was \$2,220 favourable. The company uses a fixed manufacturing overhead rate of \$1.85

per direct labour-hour. During January, the standard direct labour-hours allowed for the month's output?

A. exceeded denominator hours by 1,000.

B. fell short of denominator hours by 1,000.

C. exceeded denominator hours by 1,200.

D. fell short of denominator hours by 1,200.

47. Patridge Company uses a standard cost system in which it applies manufacturing overhead to units of

product on the basis of direct labour-hours. The information below is taken from the company's flexible

budget for manufacturing overhead:

During the year, the company operated at exactly 80% of capacity, but applied manufacturing overhead to

products based on the 90% level. The company's fixed overhead volume variance for the year was?

A. \$6,000 unfavourable.

B. \$6,000 favourable.

C. \$12,000 unfavourable.

D. \$12,000 favourable.

48. Union Company uses a standard cost accounting system. The following overhead costs and production

data are available for August:

The total amount of overhead applied to work in process for August would be?

A. \$195,000.

B. \$197,000.

C. \$197,500.

D. \$199,500.

The Jimbob Co. uses a standard costing system in which manufacturing overhead is applied to units

of product on the basis of direct labour-hours (DLHs). The company recorded the following costs and

activity for May:

49. The amount of fixed overhead contained in the company's overhead flexible budget for May was?

A. \$64,125.

B. \$67,500.

C. \$68,400.

D. \$70,275.

50. The amount of fixed manufacturing overhead cost applied to work in process during May was?

A. \$42,750.

B. \$61,725.

C. \$62,700.

D. \$64,980.

Pending
01 Feb 2018
Due Date: 01 Feb 2018

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