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

Gaters 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 labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The company incurred a total of $240,080 in manufacturing overhead cost during the year. Required: Determine whether overhead was underapplied or overapplied for the year and by how much.

(Appendix 10A) Arca 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 variable overhead efficiency variance is:

(Appendix 10A) Fredin 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 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:

A fixed manufacturing overhead budget variance occurs as the result of a difference between the denominator level of activity (in hours)and the standard hours allowed for the actual output of the period.

Gremminger 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 variable overhead rate variance is:

(Appendix 10A) Tierman 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 machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: -The fixed overhead volume variance is:

A volume variance and budget variance are computed for fixed manufacturing overhead costs.

(Appendix 10A) Arca 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 predetermined overhead rate is closest to:

Maertz Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The budgeted fixed manufacturing overhead cost for the most recent month was $10,890 and the actual fixed manufacturing overhead cost for the month was $10,540.The company based its original budget on 3,300 machine-hours.The standard hours allowed for the actual output of the month totaled 3,240 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

(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 manufacturing overhead is underapplied or overapplied by how much?

Kiker 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 predetermined overhead rate is closest to:

(Appendix 10A) Arca 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 fixed component of the predetermined overhead rate is closest to:

Fenderson 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 machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The company incurred a total of $370,077 in manufacturing overhead cost during the year. 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 whether overhead was underapplied or overapplied for the year and by how much.

(Appendix 10A) An outdoor barbecue grill 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 volume variance for the period is closest to:

At the beginning of last year,Monze Corporation budgeted $600,000 of fixed manufacturing overhead and chose a denominator level of activity of 100,000 direct labor-hours.At the end of the year,Monze's fixed manufacturing overhead budget variance was $8,000 unfavorable.Its fixed manufacturing overhead volume variance was $21,000 favorable.Actual direct labor-hours for the year were 96,000.What was Monze's actual fixed manufacturing overhead for last year?

(Appendix 10A) A manufacturing company 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 variable overhead rate variance for the period was closest to:

(Appendix 10A) Zotta Enterprises uses standard costing and applies manufacturing overhead cost to products on the basis of standard direct labor-hours (DLHs). Budgeted and actual data relating to manufacturing overhead for last year appear below: -The standard direct labor-hours allowed for the output was:

(Appendix 10A) Tierman 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 machine-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) Arca 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 of the overhead variances is:

(Appendix 10A) Kisler 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 machine-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: