er-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 138MANAGEMENT ADVISORY SERVICES STANDARD COSTS AND VARIANCE
ANALYSIS 38. Bonds Company uses the equation $300,000 + $1.75 per direct labor hour to budget
manufacturing overhead. Bonds has budgeted 125,000 direct labor hours for the year. Actual results
were 110,000 direct labor hours, $297,000 fixed overhead, and $194,500 variable overhead. The total
overhead variance for the year is (E) a. $1,000. c. $35,000 b. $48,000. d. $36,000. L & H 10e 29. Malcolm
Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing
overhead to jobs. On September 1, the estimates for the month were: Manufacturing overhead $17,000
Direct labor hours 13,600 During September, the actual results were: Manufacturing overhead $18,500
Direct labor hours 12,000 The cost records for September will show: G & N 10e A. Overapplied overhead
of $1,500. C. Overapplied overhead of $3,500. B. Underapplied overhead of $1,500. D. Underapplied
overhead of $3,500. Actual Direct Labor Hours 30. Hoyt Company applies overhead at $6 per direct labor
hour. In March Hoyt incurred overhead of $144,000. Under-applied overhead was $6,000. How m