166 the variable overhead rate variance may be caused by variances in the following 4310276

166) The variable overhead rate variance may be caused by variances in the following production inputs except

A) indirect materials.

B) indirect labor.

C) fixed manufacturing overhead.

D) None of the above impacts the variable overhead rate variance.

167) What does the variable overhead efficiency variance tell management?

A) How efficiently variable manufacturing overhead was used

B) How efficiently fixed manufacturing overhead was used

C) How efficiently employees applied manufacturing overhead to each unit

D) How much of the total variable manufacturing overhead variance is due to machine hours used given the actual volume of output

168) The ________ is the difference between total actual overhead costs and the flexible budget amount for overhead costs for actual production.

A) production volume variance

B) overhead flexible budget variance

C) overhead efficiency variance

D) both A and C

169) Which of the following statements would be true if actual units produced exceed the budgeted units to be produced?

A) Production volume variance is expected to be unfavorable.

B) Overhead flexible budget variance is expected to be favorable.

C) Production volume variance is expected to be favorable.

D) Overhead flexible budget variance is expected to be unfavorable.

170) The Laramie Corporation manufactures Product X that consumes a large amount of overhead. For the month of October Laramie produced 15,250 units of Product X and incurred actual overhead costs of $375,000. The standard costs developed for Product X by Laramie follow:

Standard direct labor hours per unit

2

Standard direct labor rate per hour

$15.00

Standard overhead hours per unit

6

Standard overhead rate per hour

$5.50

What was the total variable overhead variance for Product X in October?

A) $128,250 favorable

B) $128,250 unfavorable

C) $291,125 favorable

D) $291,125 unfavorable

171) Speaker City designs and manufactures high-end home theater speakers. Speaker City uses a standard overhead rate of 3.5 hours per unit at a cost of $9.50 per hour. Data for the month of June shows that Speaker City produced 500 units and recorded actual overhead costs of $19,500. What is the total variable overhead variance for the month of June?

A) $2,875 favorable

B) $14,750 unfavorable

C) $14,750 favorable

D) $2,875 unfavorable

172) Batchelder Manufacturing reported the following budgeted and actual figures for one of its products:

Standard overhead cost per unit (1 hour at $2.75 per hour)

$2.75

Actual overhead costs

$3,250

Budgeted units

725

Actual units produced

600

Given this data, what is the total variable overhead variance for this product?

A) $1,600 favorable

B) $1,600 unfavorable

C) $1,256 favorable

D) $1,256 unfavorable

173) Capital Manufacturing designs and manufactures bathtubs for home and commercial applications. Capital recorded the following data for its commercial bathtub production line during the month of March:

Standard DL hours per tub

3

Standard overhead rate per DL hour

$6.50

Standard overhead cost per unit

$19.50

Actual overhead costs

$22,750

Actual DL hours

3,250

Actual overhead cost per machine hour

$7.00

Actual tubs produced

1,100

What is the variable manufacturing overhead rate variance for March?

A) $1,625 unfavorable

B) $325 unfavorable

C) $1,625 favorable

D) $325 favorable

174) Capital Manufacturing designs and manufactures bathtubs for home and commercial applications. Capital recorded the following data for its commercial bathtub production line during the month of March:

Standard DL hours per tub

3

Standard overhead rate per DL hour

$6.50

Standard overhead cost per unit

$19.50

Actual overhead costs

$22,750

Actual DL hours

3,250

Actual overhead cost per machine hour

$7.00

Actual tubs produced

1,100

What is the variable manufacturing overhead efficiency variance for March?

A) $1,625 unfavorable

B) $325 unfavorable

C) $1,625 favorable

D) $325 favorable

175) The Chilton Corporation specializes in manufacturing one type of desk lamp. Chilton allocates variable manufacturing overhead costs on the basis of machine hours. Chilton budgeted .5 machine hours per lamp and allocates overhead at a rate of $1.80 per machine hour. Last year Chilton manufactured 23,000 lamps, used 13,800 machine hours and incurred actual overhead costs of $15,180.

What was Chilton's variable manufacturing overhead rate variance last year?

A) $4,140 favorable

B) $4,140 unfavorable

C) $9,660 favorable

D

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