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

Dellarocco 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) 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 predetermined overhead rate is 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 budgeted fixed manufacturing overhead cost was:

(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 overhead volume variance is:

Songster Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual overhead costs for the most recent month appear below: The company based its original budget on 3,500 machine-hours.The company actually worked 3,700 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 3,820 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

(Appendix 10A) Jessep Corporation has a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. The company has provided the following data concerning its fixed manufacturing overhead costs in March: -The fixed manufacturing overhead volume variance is:

(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 did Tantanka use as a predetermined overhead rate for fixed manufacturing overhead?

(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 variable component of the predetermined overhead rate is closest to:

Alapai 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 total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

Reade 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 total manufacturing overhead is underapplied or overapplied by how much?

(Appendix 10A) Fleming 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 fixed overhead budget variance is:

(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: -If the denominator level of activity is 6,100 machine-hours,the variable component in the predetermined overhead rate would be:

A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours.The company's choice of the denominator level of activity has no effect on the fixed manufacturing overhead budget 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 applied to products during the period is closest to:

Benoit Corporation's manufacturing overhead includes $13.20 per machine-hour for variable manufacturing overhead and $555,408 per period for fixed manufacturing overhead. Required: Determine the predetermined overhead rate for the denominator level of activity of 5,700 machine-hours.

Carattini 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 total amount of manufacturing overhead applied is closest to:

(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 overhead applied to products during the period was closest to:

The volume variance is nonzero whenever:

Canel 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.Determine the fixed overhead budget variance for the year. b.Determine the fixed overhead volume variance for the year.

Mcgreal Incorporated has provided the following data concerning its overhead variances for the most recent period: The total of the overhead variances is: