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

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.

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

The fixed component of the predetermined overhead rate is closest to:

The volume variance is nonzero whenever:

Pickell 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: 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. e.Determine whether overhead was underapplied or overapplied for the year and by how much.

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:

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

The variable overhead efficiency variance is:

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

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?

Thilges 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 variable overhead efficiency variance is:

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

The fixed overhead volume variance is:

Goolden Electronics Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs).The company had budgeted its fixed manufacturing overhead cost at $58,000 for the month and its level of activity at 2,500 MHs.The actual total fixed manufacturing overhead was $61,200 for the month and the actual level of activity was 2,600 MHs.What was the fixed manufacturing overhead budget variance for the month to the nearest dollar?

The predetermined overhead rate is closest to:

The fixed component of the predetermined overhead rate is closest to:

The fixed manufacturing overhead budget 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?

The predetermined overhead rate is closest to:

The fixed overhead budget variance is: