Reference no: EM13973958

Multiple Choice Questions: 

Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires two standard hours of direct labor for completion. The denominator activity for the year was based on budgeted production of 200,000 units. Total overhead was budgeted at $900,000 for the year, and the fixed manufacturing overhead rate was $1.50 per direct labor-hour. The actual data

pertaining to the manufacturing overhead for the year are presented below:

Actual production ..............$198,000 units
Actual direct labor-hours ............$440,000 direct labor-hours
Actual variable manufacturing overhead......$352,000
Actual fixed manufacturing overhead.......$575,000

1. The standard hours allowed for actual production for the year total:

A. 247,500
B. 396,000
C. 400,000
D. 495,000

2. Franklin's variable overhead efficiency variance for the year is: 

A. $33,000 unfavorable
B. $35,200 favorable
C. $35,200 unfavorable
D. $33,000 favorable

3. Franklin's variable overhead rate variance for the year is: 

A. $20,000 unfavorable
B. $22,000 favorable
C. $22,000 unfavorable
D. $20,000 favorable 

4. The fixed manufacturing overhead applied to Franklin's production for the year is: 

A. $484,200
B. $575,000
C. $594,000
D. $600,000

5. Franklin's Production volume variance for the year is: 

A. $6,000 unfavorable
B. $19,000 favorable
C. $25,000 favorable
D. $55,000 unfavorable