Question 29 Lewis Company budgeted variable overhead for the year is $120,000. E
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Question
Question 29
Lewis Company budgeted variable overhead for the year is $120,000. Expected activity is 20,000 standard direct labor hours. The actual hours worked were 18,000 and the standard hours allowed for actual production were 19,500. The variable overhead efficiency variance is:
Answer
$0.
$12,000 F.
$3,000 F.
$9,000 F.
none of these.
Question 30
Figure 10-4.
Lewis Company calculates its predetermined rates using practical volume, which is 288,000 units. The standard cost system allows 2 direct labor hours per unit produced. Overhead is applied using direct labor hours. The total budgeted overhead is $3,168,000, of which $864,000 is fixed overhead. The actual results for the year are as follows:
Units produced: 280,000
Direct labor: 570,000 hours @ $9
Variable overhead: $2,320,000
Fixed overhead: $872,000
Refer to Figure 10-4. The predetermined fixed overhead rate is:
Answer
$3 per direct labor hour.
$1.50 per direct labor hour.
$5.50 per direct labor hour.
$4 per direct labor hour.
none of these.
Question 31
Figure 10-4.
Lewis Company calculates its predetermined rates using practical volume, which is 288,000 units. The standard cost system allows 2 direct labor hours per unit produced. Overhead is applied using direct labor hours. The total budgeted overhead is $3,168,000, of which $864,000 is fixed overhead. The actual results for the year are as follows:
Units produced: 280,000
Direct labor: 570,000 hours @ $9
Variable overhead: $2,320,000
Fixed overhead: $872,000
Refer to Figure 10-4. The predetermined variable overhead rate is:
Answer
$3.00 per direct labor hour.
$1.50 per direct labor hour.
$5.50 per direct labor hour.
$4.00 per direct labor hour.
none of these.
Question 32
Figure 10-4.
Lewis Company calculates its predetermined rates using practical volume, which is 288,000 units. The standard cost system allows 2 direct labor hours per unit produced. Overhead is applied using direct labor hours. The total budgeted overhead is $3,168,000, of which $864,000 is fixed overhead. The actual results for the year are as follows:
Units produced: 280,000
Direct labor: 570,000 hours @ $9
Variable overhead: $2,320,000
Fixed overhead: $872,000
Refer to Figure 10-4. Calculate the applied fixed overhead.
Answer
$840,000
$855,000
$864,000
$910,000
none of these
Question 33
Figure 10-4.
Lewis Company calculates its predetermined rates using practical volume, which is 288,000 units. The standard cost system allows 2 direct labor hours per unit produced. Overhead is applied using direct labor hours. The total budgeted overhead is $3,168,000, of which $864,000 is fixed overhead. The actual results for the year are as follows:
Units produced: 280,000
Direct labor: 570,000 hours @ $9
Variable overhead: $2,320,000
Fixed overhead: $872,000
Refer to Figure 10-4. Calculate the fixed overhead spending variance.
Answer
$32,000 F
$0
$8,000 U
$32,000 U
$8,000 F
Lewis Company budgeted variable overhead for the year is $120,000. Expected activity is 20,000 standard direct labor hours. The actual hours worked were 18,000 and the standard hours allowed for actual production were 19,500. The variable overhead efficiency variance is:
Answer
$0.
$12,000 F.
$3,000 F.
$9,000 F.
none of these.
Explanation / Answer
29. (19,500-18,000)* $6= $9,000 F 30. 864,000/288,000*2= $1.50 per hour 31. 2,304,000/288,000*2= $4.00 per hour 32. 570,000* $1.50= $855,000. 33. 872,000-(280,000*2*1.50)= 32,000U
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