Q1: The standard costs and actual costs for factory overhead for the manufacture
ID: 2400113 • Letter: Q
Question
Q1:
The standard costs and actual costs for factory overhead for the manufacture of 2,700 units of actual production are as follows:
The amount of the fixed factory overhead volume variance is
$1,110 unfavorable
$1,387 unfavorable
$1,110 favorable
$0
Q2:
The standard costs and actual costs for factory overhead for the manufacture of 2,600 units of actual production are as follows:
The amount of the variable factory overhead controllable variance is
$0
$2,090 favorable
$2,612 favorable
$2,612 unfavorable
Q3:
ABC Corporation has three service departments with the following costs and activity base:
ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information are as follows:
What is the service department charge rate for the Accounting Department?
a.$250
b.$0.004
c.$625
d.$714
Q4:
ABC Corporation has three service departments with the following costs and activity base:
ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information are as follows:
How much service department cost will be allocated to the Micro Division?
a.$145,000
b.$200,000
c.$345,000
d.$60,000
Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit @ $0.73 per hour Variable overhead 3 hours per unit @ $2.03 per hourActual Costs Total variable cost, $18,000 Total fixed cost, $8,100
Explanation / Answer
Q 1. 0
Explanation: Fixed Overhead volume variance will be zero because standard production and budgeted production is same. Fixed Overhead Volume varaince is the differnce between standard and budgeted fixed overhead.
Q 2. $ 2612 unfavourable
Explanation:
3. $ 250
Explanation:
Total Cost of Accounting Department = $ 500,000
No of invoice processed (700+800+500) =2000
Rate =$ 500000/2000
= $ 250
4. C $ 3,45,000
Explanation:
Variable controllable variance Actual Factory Overhead-Budgeted allowance based on sthandard hours allowed 17900-(2600*3*1.96) 2612 unfavourableRelated Questions
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