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Question :
61.The following information pertains to the Braun Company for March:
Standard : 1416265

61.The following information pertains to the Braun Company for March:

Standard direct labor hours per unit.5 hours

Budgeted production level20,000 units

Actual units produced22,000 units

Standard variable rate per direct labor hour$2.00

Standard fixed rate per direct labor hour$3.00

Actual direct labor hours worked10,500 hours

Actual direct labor costs$150,000

Actual fixed factory overhead31,800

Actual variable factory overhead22,200

Using the four-variance method of factory overhead variance analysis, what is the budget variance?

a.$1,200 favorable

b.$1,800 unfavorable

c.$3,000 favorable

d.$1,200 unfavorable

62.The following information pertains to the Braun Company for March:

Standard direct labor hours per unit.5 hours

Budgeted production level20,000 units

Actual units produced22,000 units

Standard variable rate per direct labor hour$2.00

Standard fixed rate per direct labor hour$3.00

Actual direct labor hours worked10,500 hours

Actual direct labor costs$150,000

Actual fixed factory overhead31,800

Actual variable factory overhead22,200

Using the four-variance method of factory overhead variance analysis, what is the volume variance?

a.$1,200 favorable

b.$1,800 unfavorable

c.$3,000 favorable

d.$1,200 unfavorable

63.Which of the following correctly demonstrates the comparison of the four-variance method of factory overhead analysis to the two-variance method of factory overhead analysis?

a.The sum of the spending and budget variances in the four-variance method is equal to the controllable variance in the two-variance method.

b.The sum of the budget, spending and efficiency variances in the four-variance method is equal to the controllable variance in the two-variance method.

c.The sum of the spending, efficiency and volume variances in the four-variance method is equal to the controllable variance in the two-variance method.

d.The budget variance in the four-variance method is equal to the controllable variance in the two-variance method.

64.Which of the following correctly demonstrates the comparison of the four-variance method of factory overhead analysis to the two-variance method of factory overhead analysis?

a.The sum of the spending, efficiency and budget variances in the four-variance method is equal to the volume variance in the two-variance method.

b.The sum of the volume and efficiency variances in the four-variance method is equal to the volume variance in the two-variance method.

c.The volume variance in the four-variance method is equal to the volume variance in the two-variance method.

d.The sum of the budget and volume variances in the four-variance method is equal to the volume variance in the two-variance method.

65.In the three-variance method of factory overhead analysis, what standard cost variance represents the difference between actual factory overhead incurred and budgeted factory overhead based on actual hours worked?

a.Volume variance

b.Efficiency variance

c.Budget (spending) variance

d.Quantity variance

66.The following information is available from the Tomoto Company:

Actual factory overhead$16,500

Actual fixed overhead expenses$ 9,200

Budgeted fixed overhead expenses$ 9,000

Actual hours3,600

Standard hours3,800

Variable overhead rate per direct labor hour$ 2.25

Assuming that Tomoto uses a three-variance analysis of overhead variances, what is the budget (spending) variance?

a.$600 favorable

b.$600 unfavorable

c.$450 favorable

d.$450 unfavorable

67.In a three-variance method of factory overhead analysis, the variance that indicates that the volume of production was more or less than budgeted is the:

a.Budget variance.

b.Capacity variance.

c.Spending variance.

d.Efficiency variance.

68.In a three-variance method of factory overhead analysis, the variance that measures the difference between the factory overhead applied and the actual hours worked multiplied by the standard rate is the:

a.Budget variance.

b.Capacity variance.

c.Spending variance.

d.Efficiency variance.

**PROBLEM**