Exam 18:Flexible Budgets, Standard Costs, and Variance Analysis

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:

The fixed manufacturing overhead budget variance equals:

The variable overhead rate variance is:

Gallucci 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 predetermined overhead rate is closest to:

The fixed manufacturing overhead volume variance for April was:

Berk 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: 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.Determine the variable overhead rate variance for the year. d.Determine the variable overhead efficiency variance for the year. e.Determine the fixed overhead budget variance for the year. f.Determine the fixed overhead volume variance for the year.

What was the variable overhead efficiency variance for the period to the nearest dollar?

The fixed overhead budget variance is:

The fixed manufacturing overhead budget variance for the period is closest to:

The fixed manufacturing overhead budget variance for the period is closest to:

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?

If the denominator level of activity is 7,500 machine-hours, the fixed component in the predetermined overhead rate would be:

The predetermined overhead rate 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.

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?

Rhine 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: Required: a.Determine the fixed overhead budget variance for the year. b.Determine the fixed overhead volume variance for the year.

The fixed overhead volume variance is:

Recht Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $9.30 per machine-hour and fixed manufacturing overhead cost of $17,940 per period.If the denominator level of activity is 1,200 machine-hours, the fixed element in the predetermined overhead rate would be:

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.

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.