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1
The Mykonos Company applies manufacturing overhead costs to products on the basis of direct labor-hours. The standard cost card shows that 6 direct labor-hours are required per unit of product. For August, the company budgeted to work 180,000 direct labor-hours and to incur the following total manufacturing overhead costs:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073048836/346044/09_q01a.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (4.0K)</a>

During August, the company completed 28,000 units of product, worked 172,000 direct labor-hours, and incurred the following total manufacturing overhead costs:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073048836/346044/09_q01b.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (4.0K)</a>

The denominator activity in the predetermined overhead rate is 180,000 direct labor-hours. The variable overhead spending variance for August is:
A)$8,600 F.
B)$8,600 U.
C)$13,000 F.
D)$13,000 U.
2
The Mykonos Company applies manufacturing overhead costs to products on the basis of direct labor-hours. The standard cost card shows that 6 direct labor-hours are required per unit of product. For August, the company budgeted to work 180,000 direct labor-hours and to incur the following total manufacturing overhead costs:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073048836/346044/09_q02a.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (4.0K)</a>

During August, the company completed 28,000 units of product, worked 172,000 direct labor-hours, and incurred the following total manufacturing overhead costs:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073048836/346044/09_q02b.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (4.0K)</a>

The denominator activity in the predetermined overhead rate is 180,000 direct labor-hours. (Note that this is the same data that was provided for the previous question.) The variable overhead efficiency variance for August is:
A)$0.
B)$3,600 F.
C)$4,400 F.
D)$4,400 U.
3
The Mykonos Company applies manufacturing overhead costs to products on the basis of direct labor-hours. The standard cost card shows that 6 direct labor-hours are required per unit of product. For August, the company budgeted to work 180,000 direct labor-hours and to incur the following total manufacturing overhead costs:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073048836/346044/09_q03a.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (4.0K)</a>

During August, the company completed 28,000 units of product, worked 172,000 direct labor-hours, and incurred the following total manufacturing overhead costs:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073048836/346044/09_q03b.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (4.0K)</a>

The denominator activity in the predetermined overhead rate is 180,000 direct labor-hours. (Note that this is the same data that was provided for the previous question.) The fixed overhead budget variance for August is:
A)$7,000 F.
B)$7,000 U.
C)$6,400 F.
D)$6,400 U.
4
The Mykonos Company applies manufacturing overhead costs to products on the basis of direct labor-hours. The standard cost card shows that 6 direct labor-hours are required per unit of product. For August, the company budgeted to work 180,000 direct labor-hours and to incur the following total manufacturing overhead costs:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073048836/346044/09_q04a.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (4.0K)</a>

During August, the company completed 28,000 units of product, worked 172,000 direct labor-hours, and incurred the following total manufacturing overhead costs:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073048836/346044/09_q04b.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (4.0K)</a>

The denominator activity in the predetermined overhead rate is 180,000 direct labor-hours. (Note that this is the same data that was provided for the previous question.) The fixed overhead volume variance for August is:
A)$8,600 U.
B)$9,960 F.
C)$9,960 U.
D)$15,840 U.





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