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

(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 predetermined overhead rate is closest to:

(Appendix 10A) Wineman 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:

Pearlman 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: Required: a.Determine the variable overhead rate variance for the year. b.Determine the variable overhead efficiency variance for the year. c.Determine the fixed overhead budget variance for the year. d.Determine the fixed overhead volume variance for the year.

(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: -The variable overhead efficiency variance is:

Hoag Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual fixed manufacturing overhead costs for the most recent month appear below: The company based its original budget on 2,600 machine-hours.The company actually worked 2,280 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 2,080 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

Eastern Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours (DLHs).The denominator activity level is 60,000 direct labor-hours,or 300,000 units. • A standard cost card for the company's product follows: • Actual data for the year follow: Required: a.Compute the variable overhead rate and efficiency variances. b.Compute the fixed manufacturing overhead budget and volume variances.

Lossing 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 5,100 machine-hours.The company actually worked 4,800 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 4,980 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

At the beginning of last year,Tarind Corporation budgeted $75,000 of fixed manufacturing overhead and chose a denominator level of activity of 150,000 machine-hours.At the end of the year,Tari's fixed manufacturing overhead budget variance was $2,250 favorable.Its fixed manufacturing overhead volume variance was $3,750 favorable.Actual direct labor-hours for the year were 156,250.What was Tari's total standard machine-hours allowed for last year's output?

The economic impact of the inability to reach a target denominator level of activity would best be measured by:

(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 manufacturing overhead is underapplied or overapplied by how much?

Plantier 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.The budgeted fixed manufacturing overhead for the year was $136,950 and the budgeted hours were 27,500 machine-hours.Data concerning the actual results for 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.

(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 amount of manufacturing overhead applied is closest to:

(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 volume variance for the period is closest to:

Birkland 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: 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.

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.A fixed manufacturing overhead volume variance will necessarily occur in a month in which the fixed manufacturing overhead applied to units of product on the basis of standard hours allowed differs from the budgeted fixed manufacturing overhead.

(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 predetermined overhead rate is closest to:

(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 denominator activity level in direct labor-hours used by Chuba in setting the predetermined overhead rate was:

(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 overhead rate variance is:

The fixed manufacturing overhead budget variance equals:

The higher the denominator activity level used to compute the predetermined overhead rate,the higher the predetermined overhead rate.