Exam 24: Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

(Appendix 10A) The Chuba Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours (DLHs). During December, the company actually used 7,200 direct labor-hours and made 1,900 units of finished product. The standard cost card for one unit of product includes the following data concerning manufacturing overhead: Variable overhead: 4 DLHs @ $5.25 per DLH Fixed overhead: 4 DLHs @ $2.00 per DLH For December, the company incurred $16,550 in fixed manufacturing overhead costs and recorded an $800 unfavorable volume variance. -The budgeted fixed manufacturing overhead cost was:

(Appendix 10A) A furniture manufacturer uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: -The fixed manufacturing overhead budget variance for the period is closest to:

(Appendix 10A) Chojnowski Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: -The fixed overhead budget variance is:

(Appendix 10A) Weyers Incorporated makes a single product--a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: -The total manufacturing overhead is underapplied or overapplied by how much?

(Appendix 10A) Chojnowski Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: -The variable component of the predetermined overhead rate is closest to:

Modine Corporation has provided the following data for September. Required: a.Compute the budget variance for September.Show your work! b.Compute the volume variance for September.Show your work!

Teall Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs).The company has provided the following data for the most recent month: What was the fixed manufacturing overhead budget variance for the month?

Merone Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The company bases its predetermined overhead rate on 2,300 machine-hours.The company's total budgeted fixed manufacturing overhead is $5,060.In the most recent month,the total actual fixed manufacturing overhead was $4,660.The company actually worked 2,200 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 2,320 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

Leshem Incorporated makes a single product--an electrical motor used in many long-haul trucks.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The variable overhead rate variance is:

Nemes Incorporated makes a single product--a cooling coil used in commercial refrigerators.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The fixed component of the predetermined overhead rate is closest to:

The Rowe Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard machine-hours.During January,the company budgeted to incur $225,000 in manufacturing overhead cost and to operate at a denominator activity level of 25,000 machine-hours.At standard,each unit of finished product requires 3 machine-hours.The following cost and activity were recorded during January: The amount of overhead cost that the company applied to Work in Process for January was:

(Appendix 10A) Standard Corporation has developed standard manufacturing overhead costs based on a capacity of 180,000 direct labor-hours (DLHs) as follows: Standard overhead costs per unit: Variable portion: 2 DLHs × $3 per DLH = $6 Fixed portion: 2 DLHs × $5 per DLH = $10 The following data pertain to operations in April: -The variable overhead rate variance for April was:

(Appendix 10A) Tantanka Manufacturing Corporation uses a standard cost system with machine-hours as the activity base for overhead. The following information relates to production for last year: The standard machine-hours allowed for actual output during the year were 7,600. The actual machine-hours incurred were 7,500. -What was Tantanka's variable overhead efficiency variance?

(Appendix 10A) A manufacturer of playground equipment has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: -The fixed manufacturing overhead budget variance for the period is closest to:

(Appendix 10A) A manufacturer of playground equipment has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: -The predetermined fixed manufacturing overhead rate is closest to:

Rodarta Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The company's predetermined overhead rate for fixed manufacturing overhead is $1.20 per machine-hour and the denominator level of activity is 6,600 machine-hours.In the most recent month,the total actual fixed manufacturing overhead was $8,340 and the company actually worked 6,400 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 6,480 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

Flick Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours.The company's total budgeted variable and fixed manufacturing overhead costs at the denominator level of activity are $20,000 for variable overhead and $30,000 for fixed manufacturing overhead.The predetermined overhead rate,including both fixed and variable components,is $2.50 per direct labor-hour.The standards call for two direct labor-hours per unit of output produced.Last year,the company produced 11,500 units of product and worked 22,000 direct labor-hours.Actual costs were $22,500 for variable overhead and $31,000 for fixed manufacturing overhead. Required: a.What is the denominator level of activity? b.What were the standard hours allowed for the output last year? c.What was the variable overhead rate variance? d.What was the variable overhead efficiency variance? e.What was the fixed manufacturing overhead budget variance? f.What was the fixed manufacturing overhead volume variance?

(Appendix 10A) Vaden Incorporated makes a single product--a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: -The total amount of manufacturing overhead applied is closest to:

Held Incorporated makes a single product--an electrical motor used in many long-haul trucks.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below: Required: a.Compute the variable component of the company's predetermined overhead rate. b.Compute the fixed component of the company's predetermined overhead rate. c.Compute the company's predetermined overhead rate. d.Determine the variable overhead rate variance for the year. e.Determine the variable overhead efficiency variance for the year. f.Determine the fixed overhead budget variance for the year. g.Determine the fixed overhead volume variance for the year. h.Determine whether overhead was underapplied or overapplied for the year and by how much.

(Appendix 10A) Stopyra Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: -If the denominator level of activity is 7,600 machine-hours,the predetermined overhead rate would be: