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    Managerial Accounting Problems

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    1. Machain Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's cost formula for variable overhead cost is $2.90 per machine hour. The actual variable overhead cost for the month was $15,270. The original budget for the month was based on 5,000 machine hours. The company actually worked 5,090 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 5,200 machine-hours. What was the variable overhead efficiency variance for the month?

    A. $580 unfavorable
    B. $190 unfavorable
    C. $509 unfavorable
    D. $319 favorable

    2. Company's standards call for 750 direct labor-hours to produce 500 units. During May, 400 units were produced. The company worked 650 direct labor hours. The standard hours allowed for May production would be:

    A. 750 hours
    B. 650 hours
    C. 600 hours
    D. 100 hours

    3. Davison Inc. consists of two districts, A and B. The company as a whole had sales of $400,000, a contribution margin ratio of 25% and a combined segment margin totaling $35,000. District A had sales of $90,000 during May, a contribution margin ratio of 45%, and a segment margin of $16,000. If the net operating income of Davison Inc. for May is $12,000, the traceable fixed expenses in District B must have seen:

    A. $23,000
    B. $24,500
    C. $49,000
    D. $40,500

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    Solution Summary

    Solution contains answers of managerial accounting problems.