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What amount should credited to the allocated manufacturing

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Reference no: EM132553175

Lambda Company, which produces tool boxes, uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labour hours and are shown below:

Variable overhead (5 hours @ $12 per direct manufacturing labour hour) $ 60

Fixed overhead (5 hours @ $15* per direct manufacturing labour hour) 75

Total overhead per box $135

*Based on capacity of 200,000 direct manufacturing labour hours per month.

The following information is available for the month of December:

• 46,000 boxes were produced although 40,000 boxes were scheduled to be produced.

• 225,000 direct manufacturing labour hours were worked at a total cost of $5,625,000.

• Variable manufacturing overhead costs were $2,750,000.

• Fixed manufacturing overhead costs were $3,050,000.

Question 1: The variable overhead spending variance for December was

a. $10,000 F. b. $50,000 U. c. $60,000 F. d. $350,000 U.

Question 2: The variable manufacturing overhead efficiency variance for December was

a. $10,000 F. b. $50,000 U. c. $60,000 F. d. $350,000 U.

Question 3: The fixed manufacturing overhead spending variance for December was

a. $50,000 U. b. $400,000 F. c. $450,000 F. d. $775,000 F.

Question 4: The fixed overhead production volume variance for December was

a. $50,000 U. b. $400,000 F. c. $450,000 F. d. $775,000 F.

Question 5: What amount should be credited to the allocated manufacturing overhead control account for the month of December?

a. $5,700,000 b. $5,760,000 c. $5,800,000 d. $6,210,000

Question 6: Under the 2-variance method, the flexible budget variance for December was

a. $100,000 U. b. $50,000 U. c. $40,000 U. d. $10,000 F.

Question 7: Under the 3-variance method, the spending variance for December was

a. $100,000 U. b. $50,000 U. c. $40,000 U. d. $10,000 F.

Reference no: EM132553175

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