ACC 3200 Practice Questions for the Final – Summer 2019
1. Sen Company’s standard requires 3 direct labor hours for each unit produced and pays $10 per hour. During
the last month, the company produced 1000 units of product and paid a total $32,340 direct labor salary. The
labor efficiency variance was $600 favorable. What was direct labor rate variance?
A) $5,880 Unfavorable
B) $7,920 Unfavorable
C) $3,960 Unfavorable
D) $2,940 Unfavorable
2. Dan Corporation uses a standard costing system in which variable manufacturing overhead is assigned to
production on the basis of the number of machine hours. The following data pertain to one month's operations:
• Variable manufacturing overhead cost incurred: $70,000
• Total (flexible budget) variable overhead variance: $4,550 favorable
• Standard machine hours allowed for actual production: 3,550
• Actual machine hours incurred: 3,600
The variable overhead efficiency variance is:
A) $1,050 favorable
B) $1,050 unfavorable
C) $3,500 unfavorable
D) $2,100 favorable
3. Samsong Company uses a standard costing system and applies its fixed manufacturing overhead (FMO) costs
to products based on the number of machine hours. Last year Samsung incurred a total actual FMO $48,000
when produced 12,500 units. The FMO was over-applied by $2000. When analyzing the cost variances, the
chief accountant determined that there was a favorable $3,600 FMO production volume variance. Determine
the budgeted production level in units for the past year.
A. 13,600 units
B. 11,600 units
C. 11,050 units
D. 10,600 units
E. Need more information.
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, 4. Kuhlman Corporation applies manufacturing overhead to products on the basis of standard machine-hours.
Budgeted and actual overhead costs for the most recent month appear below:
Original Budget Actual Costs
Variable overhead costs:
Supplies $4,480 $4,310
Indirect labor 3,360 3,630
Fixed overhead costs:
Supervision 2,800 2,810
Utilities 7,840 7,820
Factory depreciation 14,280 14,260
Total overhead cost 32,760 32,830
The company based its original budget on 2,800 machine-hours. The company actually worked 2,730 machine-
hours during the month. The standard hours allowed for the actual output of the month totaled 2,730 machine-
hours. What was the fixed manufacturing overhead volume variance for the month?
A. $623 favorable
B. $534 favorable
C. $623 unfavorable
D. $534 unfavorable
E. None of the above
5. Standards for direct materials in making one unit of product are: 20 pounds per unit at $0.75 per pound. Last
month, 56,000 units of product were made; the materials price variance was $30,000 Unfavorable; and the
materials quantity variance was $30,000 Favorable. The number of pounds of direct materials used during the
period is closest to:
A. 1,160,000
B. 1,073,333
C. 1,166,667
D. 1,080,000
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1. Sen Company’s standard requires 3 direct labor hours for each unit produced and pays $10 per hour. During
the last month, the company produced 1000 units of product and paid a total $32,340 direct labor salary. The
labor efficiency variance was $600 favorable. What was direct labor rate variance?
A) $5,880 Unfavorable
B) $7,920 Unfavorable
C) $3,960 Unfavorable
D) $2,940 Unfavorable
2. Dan Corporation uses a standard costing system in which variable manufacturing overhead is assigned to
production on the basis of the number of machine hours. The following data pertain to one month's operations:
• Variable manufacturing overhead cost incurred: $70,000
• Total (flexible budget) variable overhead variance: $4,550 favorable
• Standard machine hours allowed for actual production: 3,550
• Actual machine hours incurred: 3,600
The variable overhead efficiency variance is:
A) $1,050 favorable
B) $1,050 unfavorable
C) $3,500 unfavorable
D) $2,100 favorable
3. Samsong Company uses a standard costing system and applies its fixed manufacturing overhead (FMO) costs
to products based on the number of machine hours. Last year Samsung incurred a total actual FMO $48,000
when produced 12,500 units. The FMO was over-applied by $2000. When analyzing the cost variances, the
chief accountant determined that there was a favorable $3,600 FMO production volume variance. Determine
the budgeted production level in units for the past year.
A. 13,600 units
B. 11,600 units
C. 11,050 units
D. 10,600 units
E. Need more information.
1
, 4. Kuhlman Corporation applies manufacturing overhead to products on the basis of standard machine-hours.
Budgeted and actual overhead costs for the most recent month appear below:
Original Budget Actual Costs
Variable overhead costs:
Supplies $4,480 $4,310
Indirect labor 3,360 3,630
Fixed overhead costs:
Supervision 2,800 2,810
Utilities 7,840 7,820
Factory depreciation 14,280 14,260
Total overhead cost 32,760 32,830
The company based its original budget on 2,800 machine-hours. The company actually worked 2,730 machine-
hours during the month. The standard hours allowed for the actual output of the month totaled 2,730 machine-
hours. What was the fixed manufacturing overhead volume variance for the month?
A. $623 favorable
B. $534 favorable
C. $623 unfavorable
D. $534 unfavorable
E. None of the above
5. Standards for direct materials in making one unit of product are: 20 pounds per unit at $0.75 per pound. Last
month, 56,000 units of product were made; the materials price variance was $30,000 Unfavorable; and the
materials quantity variance was $30,000 Favorable. The number of pounds of direct materials used during the
period is closest to:
A. 1,160,000
B. 1,073,333
C. 1,166,667
D. 1,080,000
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