NORMAL COSTING One-Way Variance Actual Overhead 25.

Hayward applies overhead at $5 per machine

hour. During March it worked 10,000 hours and overapplied overhead by $3,000. Actual overhead was
(E) a. $53,000. c. $47,000. b. $50,000. d. none of the above. L & H 10e Applied Overhead 36. Gonzalez
Company uses the equation $520,000 + $2 per direct labor hour to budget manufacturing overhead.
Gonzalez has budgeted 150,000 direct labor hours for the year. Actual results were 150,000 direct labor
hours and $817,500 total manufacturing overhead. The total overhead applied for the year is (E) a.
$300,000. c. $817,500. b. $520,000. d. $820,000. L & H 10e 37. Gonzales Company uses the equation
$540,000 + $2 per direct labor hour to budget manufacturing overhead. Gonzalez has budgeted 160,000
direct labor hours for the year. Actual results were 160,000 direct labor hours and $857,500 total
manufacturing overhead. The total overhead variance for the year is (E) a. $2,500 favorable. c. $2,500
unfavorable. b. $12,500 favorable. d. Some other number. D, L & H 9e Over-Applied 24. Spooner applies
overhead based on direct labor cost. It had budgeted manufacturing overhead of $50,000 and budgeted
direct labor of $25,000. Actual overhead was $52,500, actual labor cost was $27,000. Overhead was (E)
a. overapplied by $1,500. c. overapplied by $2,500. b. overapplied by $2,000. d. underapplied by $2,000.
L & H 10e 37. Gonzalez Company uses the equation $520,000 + $2 per direct labor hour to budget
manufacturing overhead. Gonzalez has budgeted 150,000 direct labor hours for the year. Actual results
were 150,000 direct labor hours and $817,500 total manufacturing overhead. The total overhead
variance for the year is (E) a. $2,500 favorable. c. $2,500 unfavorable. b. $12,500 favorable. d. some
other number. L & H 10e 44. Antaya Company uses the equation $375,000 + $1.20 per direct labor hour
to budget manufacturing overhead. Antaya has budgeted 75,000 direct labor hours for the year. Actual
results were 81,000 direct labor hours, $388,000 fixed overhead, and $98,600 variable overhead. The
total overhead variance for the year is (E) a. $14,400 c. $37,200 b. $15,600 d. $30,000. L & H 10e 1 . Nil
Co. uses a predetermined factory O/H application rate based on direct labor cost. For the year ended
December 31, Nil’s budgeted factory O/H was $600,000, based on a budgeted volume of 50,000 direct
labor hours, at a standard direct labor rate of $6 per hour. Actual factory O/H amounted to $620,000,
with actual direct labor cost of $325,000. For the year, over-applied factory O/H was (M) a. $20,000 c.
$30,000 b. $25,000 d. $50,000 AICPA 1186 II-29 30. Nil Co. uses a predetermined overhead rate based
on direct labor cost to apply manufacturing overhead to jobs. For the year ended December 31, Nil's
estimated manufacturing overhead was $600,000, based on an estimated volume of 50,000 direct labor
hours, at a direct labor rate of $6.00 per hour. Actual manufacturing overhead amounted to $620,000,
with actual direct labor cost of $325,000. For the year, manufacturing overhead was: (M) A. overapplied
by $20,000. C. overapplied by $30,000. B. underapplied by $22,000. D. underapplied by $30,000. G & N
10e 2 . Watson Company uses a predetermined factory overhead application rate based on direct labor
cost. Watson's budgeted factory overhead was $756,000 based on a budgeted volume of 60,000 direct
labor hours, at a standard direct labor rate of $7.20 per hour. Actual factory overhead amounted to
$775,000 with actual direct labor cost of $450,000 for the year ended December 31. How much was
Watson's overapplied factory overhead? (M) A. $12,500 C. $19,000 B. $18,000 D. $37,000 Gleim Under-
Applied 3 . The Kelley Company uses a predetermined overhead rate of $9 per direct labor hour to apply
overhead. During the year, 30,000 direct labor hours were worked. Actual overhead costs for the year
were $240,000. The overhead variance is (E) a. $27,000 overlapped c. $30,000 underapplied b. $26,670
underapplied d. $24,000 overapplied H & M CMA EXAMINATION QUESTIONS Page 1 of
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