Answer the following four questions using the information below:
Roberts Corporation manufactured 100,000 buckets during February. The overhead cost-allocation base is $5.00 per machine-hour. The following variable overhead data pertain to February:
Actual Budgeted
Production 100,000 units 100,000 units
Machine-hours 9,800 hours 10,000 hours
Variable overhead cost per machine-hour $5.25 $5.00
13) What is the actual variable overhead cost?
A) $49,000
B) $50,000
C) $51,450
D) None of these answers is correct.
14) What is the flexible-budget amount?
A) $49,000
B) $50,000
C) $51,450
D) None of these answers is correct.
15) What is the variable overhead spending variance?
A) $1,000 favorable
B) $1,450 unfavorable
C) $2,450 unfavorable
D) None of these answers is correct.
16) What is the variable overhead efficiency variance?
A) $1,000 favorable
B) $1,450 unfavorable
C)
$2,450 unfavorable
D) None of these answers is correct.
Information on Barber Company’s direct labor costs for the month of January is asfollows:Actual direct labor hours34,500Standard direct labor hours35,000Total direct labor payrollP241,500Direct labor efficiency variance – favorableP3,200What is Barber’s direct labor rate variance?A.P17,250 UC.P21,000 UB.P20,700 UD.P21,000 F
i.STA Company uses a standard cost system.The following information pertainsto direct labor costs for the month of June:Standard direct labor rate per hourP10.00Actual direct labor rate per hourP9.00Labor rate variance (favorable)P12,000Actual output (units)2,000Standard hours allowed for actual production10,000 hoursHow many actual labor hours were worked during March for STA Company?
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ii.Information of Hanes’ direct labor costs for the month of May is as follows:Actual direct labor rateP7.50Standard direct labor hours allowed11,000Actual direct labor hours10,000Direct labor rate variance – favorableP5,500What was the standard direct labor rate in effect for the month of May?
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Two-way overhead varianceiii.The overhead variances for Big Company were:Variable overhead spending variance: P3600 favorable.Variable overhead efficiency variance: P6,000 unfavorable.Fixed overhead spending variance:P10,000 favorable.Fixed overhead volume variance:P24,000 favorable.What was the overhead controllable variance?
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iv.Kent Company sets the following standards for 2007:Direct labor cost(2 DLH @ P4.50)P9.00Manufacturing overhead (2 DLH @ P7.50)15.00Kent Company plans to produce its only product equally each month.Theannual budget for overhead costs are:Fixed overheadP150,000Variable overhead300,000Normal activity in direct labor hours60,000In March, Kent Company produced 2,450 units with actual direct labor hoursused of5,050.Actual overhead costs for the month amounted to P37,245
2. Lion Company’s direct labor costs for the month of January were as follows:Actual total direct labor-hours...................20,000Standard total direct labor-hours................21,000Direct labor rate variance—unfavorable....$3,000Total direct labor cost.................................$126,000What was Lion’s direct labor efficiency variance?A) $6,000 favorableB) $6,150 favorableC) $6,300 favorableD) $6,450 favorable
3. Matt Company uses a standard cost system. Information for raw materials for Product RBI forthe month of October follows:Standard price per pound of raw materials..................$1.60Actual purchase price per pound of raw materials.......$1.55Actual quantity of raw materials purchased.................2,000poundsActual quantity of raw materials used.........................1,900poundsStandard quantity allowed for actual production.........1,800poundsWhat is the materials purchase price variance?
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4. Magno Cereal Corporation uses a standard cost system to collect costs related to theproduction of its “crunchy pickle” cereal. The pickle (materials) standards for each batch ofcereal produced are 1.4 pounds of pickles at a standard cost of $3.00 per pound. During themonth of August, Magno purchased 78,000 pounds of pounds at a total cost of $253,500. Magnoused all of these pickles to produce 60,000 batches of cereal. What is Magno’s materials quantityvariance for the month of August?
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