____6.The formula for computing the total overhead variance is:

aactual overhead less overhead applied.

b.overhead budgeted less overhead applied.

c.actual overhead less overhead budgeted.

d.no correct answer is given.

____7.The overhead volume variance is the difference between the:

a.overhead budget based on standard hours allowed and overhead budget based on actual hours worked.

b.normal capacity hours (denominator level of activity) and standard hours allowed times the fixed overhead rate.

c.actual overhead and the overhead budgeted based on standard hours allowed.

d.actual overhead and the overhead applied.

____8.Budgeted overhead for the Henderson Company at normal capacity (the denominator level of activity) of 30,000 direct labor hours is $6.00 per hour for variable manufacturing overhead and $4.00 per hour for fixed manufacturing overhead.In May, $310,000 of overhead was incurred in working 31,500 hours when 32,000 standard hours were allowed.The overhead volume variance is:

a.$8,000 favorable.

b.$11,000 favorable.

c.$5,000 favorable.

d.$10,000 favorable.

____9.Using the data in question 8, what is the amount of total under or overapplied overhead?

a.$5,000 favorable.

b.$2,000 favorable.

c.$10,000 favorable.

d.$10,000 unfavorable.

____10.Which of the following statements is true:

a.The materials price variance is normally caused by the production department.

b.Material quantity variances can be caused by inexperienced workers, faulty machinery, or carelessness.

c.Ideal standards represent an efficient level of performance under normal operating conditions.

d.An unfavorable variance suggests efficiencies in incurring costs and in using materials and labor.