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1. The following standards for variable manufacturing overhead have been established for a company that makes only one product:

Standard hours per unit of output	7.2	hours
Standard variable overhead rate	$13.60	per hour

The following data pertain to operations for the last month:

Actual hours	2,750	hours
Actual total variable manufacturing overhead cost	$38,090
Actual output	250	units

What is the variable overhead efficiency variance for the month?

$13,610 U

$12,920 U

$690 F

$24,480 F

2. Midgley Corporation makes a product whose direct labor standards are 0.6 hours per unit and $20 per hour. In April the company produced 6,950 units using 3,670 direct labor-hours. The actual direct labor cost was $77,070.

The labor efficiency variance for April is:

$10,000 U

$10,000 F

$6,330 F

$6,330 U

3. Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 8,400 units, but its actual level of activity was 8,450 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:

Data used in budgeting:

	Fixed element per month	Variable element per unit
Revenue		$35.90
Direct labor	$0	$6.50
Direct materials	0	11.90
Manufacturing overhead	41,000	2.20
Selling and administrative expenses	27,200	.50
Total expenses	$ 68,200	$21.10

Actual results for October:

Revenue	$302,100
Direct labor	$54,310
Direct materials	$99,230
Manufacturing overhead	$52,000
Selling and administrative expenses	$30,640

The spending variance for direct materials in October would be closest to:

$730 F

$1,325 U

$730 U

$1,325 F

4. Bossie Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system:

Costs:
Wages and salaries	$285,000
Depreciation	243,000
Utilities	170,000
Total	$698,000

Distribution of resource consumption:
	Activity Cost Pools
	Assembly	Setting up	Other	Total
Wages and salaries	55%	35%	10%	100%
Depreciation	10%	20%	70%	100%
Utilities	15%	55%	30%	100%

How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?

$193,883

$206,550

$383,900

$104,700

5. Veltri Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.72 direct labor-hours. The direct labor rate is $10.50 per direct labor-hour. The production budget calls for producing 7,500 units in October and 7,300 units in November. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5,480 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months?

$115,080.00

$111,888.00

$112,728.00

$131,838.00

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