Multiple Choice Questions

Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires two standard hours of direct labor for completion. The denominator activity for the year was based on budgeted production of 200,000 units. Total overhead was budgeted at $900,000 for the year, and the fixed manufacturing overhead rate was $1.50 per direct labor-hour. The actual data pertaining to the manufacturing overhead for the year are presented below:

Actual production .............. 198,000 units

Actual direct labor-hours ............ 440,000 direct labor-hours

Actual variable manufacturing overhead......$352,000

Actual fixed manufacturing overhead.......$575,000

1. The standard hours allowed for actual production for the year total:

A. 247,500B. 396,000C. 400,000D. 495,0002. Franklin's variable overhead efficiency variance for the year is: 

A. $33,000 unfavorable

B. $35,200 favorable

C. $35,200 unfavorable

D. $33,000 favorable

3. Franklin's variable overhead rate variance for the year is: 

A. $20,000 unfavorable

B. $22,000 favorable

C. $22,000 unfavorable

D. $20,000 favorable 

4. The fixed manufacturing overhead applied to Franklin's production for the year is: 

A. $484,200B. $575,000C. $594,000D. $600,000

5. Franklin's Production volume variance for the year is: 

A. $6,000 unfavorable

B. $19,000 favorable

C. $25,000 favorable

D. $55,000 unfavorable