38. Bonds Company uses the equation $300,000 + $1.

75 per direct labor hour to budget manufacturing

overhead. Bonds has budgeted 125,000 direct labor hours for the year. Actual results were 110,000
direct labor hours, $297,000 fixed overhead, and $194,500 variable overhead. The total overhead
variance for the year is (E) a. $1,000. c. $35,000 b. $48,000. d. $36,000. L & H 10e 29. Malcolm Company
uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to
jobs. On September 1, the estimates for the month were: Manufacturing overhead $17,000 Direct labor
hours 13,600 During September, the actual results were: Manufacturing overhead $18,500 Direct labor
hours 12,000 The cost records for September will show: G & N 10e A. Overapplied overhead of $1,500.
C. Overapplied overhead of $3,500. B. Underapplied overhead of $1,500. D. Underapplied overhead of
$3,500. Actual Direct Labor Hours 30. Hoyt Company applies overhead at $6 per direct labor hour. In
March Hoyt incurred overhead of $144,000. Under-applied overhead was $6,000. How many direct
labor hours did TYV work? (E) a. 25,000 c. 23,000 b. 24,000 d. 22,000 D, L & H 9e . MNO Company
applies overhead at P5 per direct labor hour. In March 2001, MNO incurred overhead of P120,000.
Under-applied overhead was P5,000. How many direct labor hours did MNO work? (E) A. 25,000 C.
24,000 B. 22,000 D. 23,000 RPCPA 1001 4 . Margolos, Inc. ends the month with a volume variance of
$6,360 unfavorable. If budgeted fixed factory O/H was $480,000, O/H was applied on the basis of 32,000
budgeted machine hours, and budgeted variable factory O/H was $170,000, what were the actual
machine hours (AH) for the month? (M) a. 32,424 c. 31,687 b. 32,000 d. 31,576 J.B. Romal 41. Pinnini Co.
uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to
jobs. Last year, Pinnini Company incurred $225,000 in actual manufacturing overhead cost. The
Manufacturing Overhead account showed that overhead was overapplied $14,500 for the year. If the
predetermined overhead rate was $5.00 per direct labor hour, how many hours did the company work
during the year? (M) A. 45,000 hours C. 42,100 hours B. 47,900 hours D. 44,000 hours G & N 10e 42.
Parsons Co. uses a predetermined overhead rate based on direct labor hours to apply manufacturing
overhead to jobs. Last year Parsons incurred $250,000 in actual manufacturing overhead cost. The
Manufacturing Overhead account showed that overhead was overapplied in the amount of $12,000 for
the year. If the predetermined overhead rate was $8.00 per direct labor hour, how many hours were
worked during the year? (M) A. 31,250 hours C. 32,750 hours B. 30,250 hours D. 29,750 hours G & N 10e
Three-Way Variance Variable Overhead Spending Variance 39. Bonds Company uses the equation
$300,000 + $1.75 per direct labor hour to budget manufacturing overhead. Bonds has budgeted 125,000
direct labor hours for the year. Actual results were 110,000 direct labor hours, $297,000 fixed overhead,
and $194,500 variable overhead. The variable overhead spending variance for the year is (E) a. $2,000. c.
$47,000. b. $3,000. d. $48,000. L & H 10e 29. Baxter Corporation's master budget calls for the
production of 5,000 units of its product monthly. The master budget includes indirect labor of $144,000
annually; Baxter considers indirect labor to be a variable cost. During the month of April, 4,500 units of
product were produced, and indirect labor costs of $10,100 were incurred. A performance report
utilizing flexible budgeting would report a spending variance for indirect labor of: (E) A. $1,900
unfavorable. C. $1,900 favorable. B. $700 favorable. D. $700 unfavorable. G & N 10e Fixed Overhead
Budget Variance 40. Bonds Company uses the equation $300,000 + $1.75 per direct labor hour to
budget manufacturing overhead. Bonds has budgeted 125,000 direct labor hours for the year. Actual
CMA EXAMINATION QUESTIONS Page 2 of 138MANAGEMENT ADVISORY SERVICES STANDARD COSTS
AND VARIANCE ANALYSIS results were 110,000 direct labor hours, $297,000 fixed overhead, and
$194,500 variable overhead. The fixed overhead budget variance for the year is (E) a. $2,000. c. $47,000.
b. $3,000. d. $48,000. L & H 10e 46. Antaya Company uses the equation $375,000 + $1.20 per direct
labor hour to budget manufacturing overhead. Antaya has budgeted 75,000 direct labor hours for the
year. Actual results were 81,000 direct labor hours, $388,000 fixed overhead, and $98,600 variable
overhead. The fixed overhead budget variance for the year is (E) a. $13,000. c. $17,000. b. $47,000 d.
$30,000. L & H 10e Volume Variance . ABC Company uses the equation P300,000 + P1.75 per direct labor
hour to budget manufacturing overhead. ABC has budgeted 125,000 direct labor hours for the year.
Actual results were 110,000 direct labor hours, P297,000 fixed overhead, and P194,500 variable
overhead. What is the fixed overhead volume variance for the year? (M) A. P35,000 unfavorable. C.
P2,000 favorable. B. P36,000 unfavorable. D. P3,000 favorable. RPCPA 1001 41. Bonds Company uses
the equation $300,000 + $1.75 per direct labor hour to budget manufacturing overhead. Bonds has
budgeted 125,000 direct labor hours for the year. Actual results were 110,000 direct labor hours,
$297,000 fixed overhead, and $194,500 variable overhead. The fixed overhead volume variance for the
year is (E) a. $39,000. c. $33,000. b. $3,000. d. $36,000. L & H 10e 47. Antaya Company uses the
equation $375,000 + $1.20 per direct labor hour to budget manufacturing overhead. Antaya has
budgeted 75,000 direct labor hours for the year. Actual results were 81,000 direct labor hours, $388,000
fixed overhead, and $98,600 variable overhead. The fixed overhead volume variance for the year is (E) a.
$1,400. c. $15,600. b. $13,000. d. $30,000. L & H 10e Fixed OH Budget Variance, Volume Variance &
Variable OH Spending Variance Over-(Under) Applied Overhead 34. Waldorf had a $10,000 unfavorable
fixed overhead budget variance, a $6,000 unfavorable variable overhead spending variance, and a
$2,000 favorable volume variance. The total overhead was (E) a. $14,000 overapplied. c. $18,000
overapplied. b. $14,000 underapplied. d. $18,000 underapplied. L & H 10e Variable Overhead Spending
Variance 35. Bacon had a $18,000 unfavorable volume variance, a $5,000 unfavorable fixed overhead
budget variance, and $12,000 total under-applied overhead. The variable overhead spending variance
was (E) a. $11,000 favorable. c. $11,000 unfavorable. b. $1,000 favorable. d. $23,000 unfavorable. D, L &
H 9e Fixed Overhead