{"id":13540,"date":"2020-11-24T09:06:15","date_gmt":"2020-11-24T09:06:15","guid":{"rendered":"http:\/\/onlineclassesguru.com\/index.php\/2020\/11\/24\/the-predetermined-overhead-rate-for-zane-company\/"},"modified":"2020-11-24T09:06:15","modified_gmt":"2020-11-24T09:06:15","slug":"the-predetermined-overhead-rate-for-zane-company","status":"publish","type":"post","link":"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/24\/the-predetermined-overhead-rate-for-zane-company\/","title":{"rendered":"the predetermined overhead rate for zane company"},"content":{"rendered":"<style type=\"text\/css\"><\/style><div class=\"section the_content has_content\">\n<div class=\"section_wrapper\">\n<div class=\"the_content_wrapper\">\n<div>\n<p>16.The predetermined overhead rate for Zane Company is $5,comprised of a variable overhead rate of $3 and a fixed rate of $2.The amount of budgeted overhead costs at normal capacity of$150,000 was divided by normal capacity of 30,000 direct labor hours,to arrive at the predetermined overhead rate of $5.Actual overhead for June was 9,500 variable and 6,050 fixed,and standard hours allowed for the product porduced in June was3,000 hours.The total overhead variance is<br \/>\na.3,050 F<br \/>\nb.550 F<br \/>\nc.550 U<br \/>\nd.3,050 U<br \/>\n17.The predetermined overhead rate for Zane Company is $5,comprised of a variable overhead rate of $3 and a fixed rate of $2.The amount of budgeted overhead costs at normal capacity of$150,000 was divided by normal capacity of 30,000 direct labor hours,to arrive at the predetermined overhead rate of $5.Actual overhead for June was$8,900 variable and 5,400fixed,and 1,500 units were produced.The direct labor standard is 2hours per unit produced.The total overhead variance is<br \/>\na.1,800 F<br \/>\nb.700 F<br \/>\nc.700 U<br \/>\nd.1,800 U<br \/>\n18.Which of the following is true?<br \/>\na.The form,content,and frequency of variance reports vary considerably among companies<br \/>\nb.The form,content,and frequency of variance reports do not vary among companies<br \/>\nc.The form and content of variance reports vary considerably among companies,but the frequency is always weekly<br \/>\nd.The form and content of variance reports are consistent among companies,but the frequency varies<br \/>\n19.Denmark Corporation\u2019s variance report for the purchasing department reports1,000 units of material A purchased and 2,400 units of material B purchased.It also reports standard prices of$2 for material A and $3 for Material B.Actual prices reported are$2.10 for Material A and $2.80 for Material B.Denmark should report a total price variance of<br \/>\na.380 F<br \/>\nb.340 F<br \/>\nc.340 U<br \/>\nd.380 U<br \/>\n20.When is a variance considered to be\u2019material\u2019?<br \/>\na.when it is large compared to the actual cost<br \/>\nb.when it is infrequent<br \/>\nc.when it is unfavorable<br \/>\nd.when it could have been controlled more effectively<br \/>\n21.Variance reports are<br \/>\na.external financial reports<br \/>\nb.SEC financial reports<br \/>\nc.internal reports for management<br \/>\nd.all of these<br \/>\n22.The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing<br \/>\nVariable manufacturing overhead costs$92,400<br \/>\nFixed manufacturing overhead costs55,440<br \/>\nNormal production level in labor hours30,800<br \/>\nNormal production level in units5,775<br \/>\nStandard labor hours per unit 4<br \/>\nDuring the year,5,600 units were produced,18,340 hours were worked, and the actual manufacturing overhead was $151,200.Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs.Overhead is applied on the basis of direct labor hours.<br \/>\n22-1.Fergie\u2019s total overhead variance is 7840U<br \/>\n22-2.Fergie\u2019s controllable overhead variance is 6160U<br \/>\n22-3.Fergie\u2019s volume overhead variance is<br \/>\na.1,680 U<br \/>\nb.6,160 U<br \/>\nc.7,840<br \/>\nd.22,400<br \/>\n23.Use the following table,<br \/>\nPresent Value of and Annuity of 1<br \/>\nPeriod 8% 9% 10%<br \/>\n1 .926 .917 .909<br \/>\n2 1.783 1.759 1.736<br \/>\n3 2.577 2.531 2.487<br \/>\nA company has a minimum required rate of return of 9%.It is considering investing in a project which costs#350,000 and is expected to generate cash inflows of $140,000 at the end of each year for three years.The net present value of this project is<br \/>\na.354,340<br \/>\nb.70,000<br \/>\nc.35,436<br \/>\nd.4,340<br \/>\n24.The discount rate is referred to by all of the following alternative names except the<br \/>\na.accounting rate of return<br \/>\nb.cutoff rate<br \/>\nc.hurdle rate<br \/>\nd.required rate of return<br \/>\n25.The rate that a company must pay to obtain funds from creditors and stockholders is known as the<br \/>\na.hurdle rate<br \/>\nb.cost of capital<br \/>\nc.cutoff rate<br \/>\nd.all of these<br \/>\n26.The higher the risk element in a project,the<br \/>\na.more attractive the investment<br \/>\nb.higher the net present value<br \/>\nc.higher the cost of capital<br \/>\nd.higher the discount rate<br \/>\n27.If a company\u2019s required rate of return is 10%and, in using the net present value method,a project\u2019s net present value is zero,this indicates that the<br \/>\na.project\u201ds rate of return exceeds10%<br \/>\nb.project\u2019s rate of return is less than the minimum rate required<br \/>\nc.porject earns a rate of return of 10%<br \/>\nd.project earns a rate of return of 0%<br \/>\n28.If a preoject has a profitability index of1.20,then the project\u2019s internal rate of return is<br \/>\na.equal to the discount rate<br \/>\nb.less than the discount rate<br \/>\nc.greater than the discount rate<br \/>\nd.equal to 20%<br \/>\n31.which one of the following affects cash during a period?<br \/>\na.Recording depreciation expense<br \/>\nb.Declaration of a cash dividend<br \/>\nc.write-off of an uncollectible account receivable<br \/>\nd.Payment of an accounts payable<br \/>\n32.In calculating cash flows from operating activities using the indirect method,a gain on the sale of equipment is<br \/>\na.added to net income<br \/>\nb.deducted from net income<br \/>\nc.ignored because it does not affect cash<br \/>\nd.not reported on a statement of cash flows<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"section section-post-footer\">\n<div class=\"section_wrapper clearfix\">\n<div class=\"column one post-pager\"><\/div>\n<\/div>\n<\/div>\n<div class=\"section section-post-intro-share\">\n<div class=\"section_wrapper clearfix\">\n<div class=\"column one\"><\/div>\n<\/div>\n<\/div>\n<p><center><a href=\"http:\/\/onlineclassesguru.com\/orders\/ordernow\"><img decoding=\"async\" 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