The following data have been provided by Furr Corporation:

The following data have been provided by Furr Corporation:

	Budgeted production.................................	7,000	motors
	Standard machine-hours per motor...........	8.6	machine-hours
	Standard indirect labor..............................	$7.10	per machine-hour
	Standard power..........................................	$1.40	per machine-hour
	Actual production......................................	7,300	motors
	Actual machine-hours (total).....................	62,140	machine-hours
	Actual indirect labor (total).......................	$408,340
	Actual power (total)..................................	$94,989

      98. The variable overhead spending variance for indirect labor is:

            A)      $32,854 F

            B)      $32,854 U

            C)      $37,398 F

            D)      $4,544 F

           

            Ans:  A    

            Solution:

           

            Actual machine-hours: 62,140

Standard machine-hours: 60,200

		Cost Formula (per MH)	Actual Costs Incurred 62,140 MHs	Budget Based on 62,140 MHs	Spending Variance
	Variable overhead costs (Indirect labor)........................	$7.10	$408,340	$441,194	$32,854 F

      99. The variable overhead spending variance for power is:

            A)      $7,097 U

            B)      $7,097 F

            C)      $896 F

            D)      $7,993 U

           

            Ans:  D    

            Solution:

           

            Actual machine-hours: 62,140

		Cost Formula (per MH)	Actual Costs Incurred 62,140 MHs	Budget Based on 62,140 MHs	Spending Variance
	Variable overhead costs (Power).................................	$1.40	$94,989	$86,996	$7,993 U

Use the following to answer questions 100-101:

Macchi Corporation has provided the following data for a recent period:

	Budgeted production.................................	2,200	units
	Actual production......................................	2,500	units
	Standard machine-hours per unit...............	3.1	machine-hours
	Budgeted machine-hours (3.1 × 2,200).....	6,820	machine-hours
	Standard machine-hours allowed for the actual output (3.1 × 2,500).....................	7,750	machine-hours
	Actual machine-hours................................	8,030	machine-hours

	Budgeted variable overhead cost per machine-hour:
	Lubricants..............	$2.00	per machine-hour
	Supplies...........................................	$2.60	per machine-hour
	Actual total variable overhead costs:
	Lubricants........................................	$15,858
	Supplies...........................................	$20,392

    100. The variable overhead spending variance for lubricants is:

            A)      $202 F

            B)      $358 U

            C)      $202 U

            D)      $560 U

           

            Ans:  A    

            Solution:

           

            Budgeted machine-hours: 6,820

Actual machine-hours: 8,030

Standard machine-hours allowed: 7,750

		Cost Formula (per MH)	Actual Costs Incurred 8,030 MHs	Budget Based on 8,030 MHs	Spending Variance
	Variable overhead costs (Lubricants)..............	$2.00	$15,858	$16,060	$202 F

    101. The variable overhead spending variance for supplies is:

            A)      $486 F

            B)      $242 F

            C)      $242 U

            D)      $728 U

           

            Ans:  A    

            Solution:

           

            Budgeted machine-hours: 6,820

Actual machine-hours: 8,030

Standard machine-hours allowed: 7,750

		Cost Formula (per MH)	Actual Costs Incurred 8,030 MHs	Budget Based on 8,030 MHs	Spending Variance
	Variable overhead costs (Supplies)..................................	$2.60	$20,392	$20,878	$486 F

Use the following to answer questions 102-103:

The following data have been provided by Liggett Corporation:

	Budgeted production.....................	7,400	units
	Standard machine-hours per unit...	6.6	machine-hours
	Standard lubricants........................	$3.50	per machine-hour
	Standard supplies...........................	$2.00	per machine-hour
	Actual production..........................	7,600	units
	Actual machine-hours (total).........	49,840	machine-hours
	Actual lubricants (total).................	$179,821
	Actual supplies (total)...................	$98,933

    102. The variable overhead spending variance for lubricants is:

            A)      $1,120 F

            B)      $5,381 F

            C)      $4,261 U

            D)      $5,381 U

           

            Ans:  D    

            Solution:

           

            Actual machine-hours: 49,840

		Cost Formula (per MH)	Actual Costs Incurred 49,840 MHs	Budget Based on 49,840 MHs	Spending Variance
	Variable overhead costs (Lubricants)..............	$3.50	$179,821	$174,440	$5,381 U

    103. The variable overhead spending variance for supplies is:

            A)      $640 F

            B)      $1,387 F

            C)      $1,387 U

            D)      $747 F

           

            Ans:  D    

            Solution:

           

            Actual machine-hours: 49,840

		Cost Formula (per MH)	Actual Costs Incurred 49,840 MHs	Budget Based on 49,840 MHs	Spending Variance
	Variable overhead costs (Supplies).................................	$2.00	$98,933	$99,680	$747 F