164) How is the variable overhead rate variance calculated?
A) The difference between the actual overhead rate and the standard overhead rate multiplied by the actual hours
B) The difference between the actual overhead rate and the standard overhead rate multiplied by the standard hours allowed
C) The difference between the standard hours allowed and the actual hours used multiplied by the standard overhead rate
D) The difference between the standard hours allowed and the actual hours used multiplied by the actual overhead rate
165) The variable overhead rate variance is also known as which of the following?
A) Variable overhead efficiency variance
B) Variable overhead usage variance
C) Variable overhead spending variance
D) Variable overhead price variance
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 the actual machine hours run and the standard machine hours allowed for the actual production volume.
A) production volume variance
B) overhead flexible budget variance
C) variable overhead efficiency variance
D) both A and C
169) Which of the following statements may 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) Fixed overhead 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 unit2
Standard direct labor rate per hour$15.00
Standard overhead hours per unit6
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 produced600
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 tub3
Standard overhead rate per DL hour$6.50
Standard overhead cost per unit$19.50
Actual overhead costs$22,750
Actual DL hours3,250
Actual overhead cost per machine hour$7.00
Actual tubs produced1,100
What is the variable manufacturing overhead rate variance in March?
A) $1,625 unfavorable
B) $325 unfavorable
C) $1,625 favorable
D) $325 favorable