Cash Receipts for Chesterfield Company
Not what you're looking for?
I'm trying to complete these questions from my homework and I am having a very difficult time, please help.
1. The Chesterfield Company uses standard costing. Overhead is applied at $12 per machine hour. Data for the month of March follows:? Actual overhead costs $ 97,000
? Standard machine hours allowed for actual production 8,250
? Actual machine hours used 8,700
? Flexible budget overhead for standard hours allowed 104,400
The overhead volume variance is:
1. $2,000 favorable.
2. $7,400 favorable.
3. $5,400 unfavorable.
4. $7,400 unfavorable.
2. The Downtown Company uses standard costing. Variable overhead is applied at $8 per direct labor hour. Data for the month of September follows:? Actual variable overhead costs $78,000
? Standard hours allowed for actual production 10,000
? Actual labor hours worked 9,800
The controllable overhead spending variance is:
1. $ 400 unfavorable.
2. $ 400 favorable.
3. $2,000 unfavorable.
4. $2,000 favorable.
3. An automobile parts company has a standard labor rate of $12.50 per hour. In September the company produced 40,000 units using 100,000 labor hours. If the company experienced a favorable labor rate variance of $30,000 during the month, the actual labor rate per hour must be:
1. $12.80.
2. $12.20.
3. $11.75.
4. $12.50.
4. A manufacturing company uses standard costing and applies overhead on the basis of direct labor hours. The company experienced the following results in August:? Standard direct labor hours allowed for actual production 9,000
? Actual direct labor hours used 9,250
? Predetermined overhead rate (per direct labor hour) $45
? Flexible budget overhead for standard hours allowed $410,000
The overhead volume variance for the month is:
1. $5,000 unfavorable.
2. $5,000 favorable.
3. $11,250 unfavorable.
4. $6,250 favorable.
5. A manufacturing company uses standard costing and applies overhead on the basis of direct labor hours. The company experienced the following results in December:? Predetermined overhead rate per labor hour $15.00
? Standard direct labor hours allowed for actual production 14,000
? Actual overhead costs $200,000
If the overhead volume variance was $6,000 unfavorable, the flexible budget overhead for standard hours allowed is:
1. $216,000.
2. $206,000.
3. $194,000.
4. $204,000.
6. A manufacturing company uses standard costing and applies overhead on the basis of machine hours. The company experienced the following results in June:? Predetermined overhead rate per machine hour $7.50
? Standard machine hours allowed for actual production 1,500
? Actual machine hours used 1,800
If the controllable overhead spending variance was $3,500 favorable, actual overhead costs were:
1. $7,750.
2. $10,000.
3. $14,750.
4. $16,500.
7. A suit company has the following standards to make one suit: Standard Quantity Standard Price
Direct materials 4 yards per unit $9.50 per yard
Direct labor 2 hours per unit $12.00 per hour
The company purchased 4,000 yards of material in March for $40,000. The company used 3,800 yards in March in order to make 900 suits. The direct materials price variance is:
1. $2.000 favorable.
2. $1,900 unfavorable.
3. $2,000 unfavorable.
4. $1,900 favorable.
8. A suit company has the following standards to make one suit: Standard Quantity Standard Price
Direct materials 4 yards per unit $9.50 per yard
Direct labor 2 hours per unit $12.00 per hour
The company used 13,000 yards of material in order to make 3,000 suits in April. The direct materials quantity variance is:
1. $9,500 favorable.
2. $9,500 unfavorable.
3. $12,000 favorable.
4. $12,000 unfavorable.
9. The Gene Company's sales are 30% cash and 70% credit. 60% of credit sales are collected in the month of sale, 30% in the month following the sale, and 10% is collected two months after. Budgeted sales data is as follows:June $200,000
July $100,000
August $150,000
Accounts receivable at the end of August are:
1. $21,000.
2. $70,000.
3. $147,000.
4. $49,000.
10. An automobile parts company has a standard labor rate of $10.50 per hour. In September the company produced 10,000 units using 24,000 labor hours. If the company experienced a favorable labor rate variance of $18,000 during the month, the actual labor rate per hour must be:
1. $13.50.
2. $7.50.
3. $11.25.
4. $9.75.
Purchase this Solution
Solution Summary
The solution examines cash receipt for a Chesterfield Company. The overhead volume variance is determined.
Solution Preview
1. The Chesterfield Company uses standard costing. Overhead is applied at $12 per machine hour. Data for the month of March follows:? Actual overhead costs $ 97,000
? Standard machine hours allowed for actual production 8,250
? Actual machine hours used 8,700
? Flexible budget overhead for standard hours allowed 104,400
The overhead volume variance is:
volume variance = (Actual machine hours used - standard machine hours allowed) x budgeted overhead rate
=(8700-8250)*12=5400 Unfavorable
Answer: 3. $5,400 unfavorable.
2. The Downtown Company uses standard costing. Variable overhead is applied at $8 per direct labor hour. Data for the month of September follows:? Actual variable overhead costs $78,000
? Standard hours allowed for actual production 10,000
? Actual labor hours worked 9,800
The controllable overhead spending variance is:
controllable overhead spending variance = Actual Hours of Input, at the Actual Rate - Actual Hours of Input, at the Standard Rate
=78000 - 9800*8=-400
Answer: 2. $ 400 favorable.
3. An automobile parts company has a standard labor rate of $12.50 per hour. In September the company produced 40,000 units using 100,000 labor hours. If the company experienced a favorable labor rate variance of $30,000 during the month, the actual labor rate per hour must be: ...
Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Operations Management
This quiz tests a student's knowledge about Operations Management
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.