Question 1
Cold Products Corporation manufactured 34,000 ice chests during September. The variable overhead cost-allocation base is $14.50 per machine-hour. The following variable overhead data pertain to September:
| Production | 34,000 units | 30,000 units |
| Machine-hours | 15,200 hours | 10,800 hours |
| Variable overhead cost per machine-hour: | $14.00 | $14.50 |
What is the actual variable overhead cost?
◦ $156,600
◦ $177,480
◦ $212,800
◦ $220,400
Question 2
J&J Materials and Construction Corporation produces fertilizer and distributes the product by using dump trucks. The company uses budgeted fleet hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data:
| Budgeted output units | 680 truckloads |
| Budgeted fleet hours | 476 hours |
| Budgeted variable manufacturing overhead costs for 680 loads | $72,590.00 |
| Actual output units produced and delivered | 615 truckloads |
| Actual fleet hours | 376 hours |
| Actual variable manufacturing overhead costs | $67,790.00 |
What is the flexible-budget variance for variable manufacturing overhead?
◦ $4,800 favorable
◦ $4,800 unfavorable
◦ $2,139 favorable
◦ $2,139 unfavorable
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