I'm trying to complete these questions from my homework and I am having a very difficult time, please help.
Problem 1. The Chesterfield Company uses standard costing. Overhead is applied at $12 per machine hour. Data for the month of March follows:? Actual overhead costs $ 97,000
- Standard machine hours allowed for actual production 8,250
- Actual machine hours used 8,700
- Flexible budget overhead for standard hours allowed 104,400
The overhead volume variance is:
1. $2,000 favorable.
2. $7,400 favorable.
3. $5,400 unfavorable.
4. $7,400 unfavorable.
Problem 2. The Downtown Company uses standard costing. Variable overhead is applied at $8 per direct labor hour. Data for the month of September follows:? Actual variable overhead costs $78,000
- Standard hours allowed for actual production 10,000
- Actual labor hours worked 9,800
The controllable overhead spending variance is:
1. $ 400 unfavorable.
2. $ 400 favorable.
3. $2,000 unfavorable.
4. $2,000 favorable.
Problem 3. An automobile parts company has a standard labor rate of $12.50 per hour. In September the company produced 40,000 units using 100,000 labor hours. If the company experienced a favorable labor rate variance of $30,000 during the month, the actual labor rate per hour must be:
1. $12.80.
2. $12.20.
3. $11.75.
4. $12.50.
Problem 4. A manufacturing company uses standard costing and applies overhead on the basis of direct labor hours. The company experienced the following results in August:? Standard direct labor hours allowed for actual production 9,000
- Actual direct labor hours used 9,250
- Predetermined overhead rate (per direct labor hour) $45
- Flexible budget overhead for standard hours allowed $410,000
The overhead volume variance for the month is:
1. $5,000 unfavorable.
2. $5,000 favorable.
3. $11,250 unfavorable.
4. $6,250 favorable.
Problem 5. A manufacturing company uses standard costing and applies overhead on the basis of direct labor hours. The company experienced the following results in December:? Predetermined overhead rate per labor hour $15.00
- Standard direct labor hours allowed for actual production 14,000
- Actual overhead costs $200,000
If the overhead volume variance was $6,000 unfavorable, the flexible budget overhead for standard hours allowed is:
1. $216,000.
2. $206,000.
3. $194,000.
4. $204,000.
Problem 6. A manufacturing company uses standard costing and applies overhead on the basis of machine hours. The company experienced the following results in June:? Predetermined overhead rate per machine hour $7.50
- Standard machine hours allowed for actual production 1,500
- Actual machine hours used 1,800
If the controllable overhead spending variance was $3,500 favorable, actual overhead costs were:
1. $7,750.
2. $10,000.
3. $14,750.
4. $16,500.
Problem 7. A suit company has the following standards to make one suit: Standard Quantity Standard Price
Direct materials 4 yards per unit $9.50 per yard
Direct labor 2 hours per unit $12.00 per hour
The company purchased 4,000 yards of material in March for $40,000. The company used 3,800 yards in March in order to make 900 suits. The direct materials price variance is:
1. $2.000 favorable.
2. $1,900 unfavorable.
3. $2,000 unfavorable.
4. $1,900 favorable.
Problem 8. A suit company has the following standards to make one suit: Standard Quantity Standard Price
Direct materials 4 yards per unit $9.50 per yard
Direct labor 2 hours per unit $12.00 per hour
The company used 13,000 yards of material in order to make 3,000 suits in April. The direct materials quantity variance is:
1. $9,500 favorable.
2. $9,500 unfavorable.
3. $12,000 favorable.
4. $12,000 unfavorable.
Problem 9. The Gene Company's sales are 30% cash and 70% credit. 60% of credit sales are collected in the month of sale, 30% in the month following the sale, and 10% is collected two months after. Budgeted sales data is as follows:June $200,000
July $100,000
August $150,000
Accounts receivable at the end of August are:
1. $21,000.
2. $70,000.
3. $147,000.
4. $49,000.
Problem 10. An automobile parts company has a standard labor rate of $10.50 per hour. In September the company produced 10,000 units using 24,000 labor hours. If the company experienced a favorable labor rate variance of $18,000 during the month, the actual labor rate per hour must be:
1. $13.50.
2. $7.50.
3. $11.25.
4. $9.75.