Exam 21: Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

(Appendix 11A)Pizzi, Inc.had the following fixed manufacturing overhead variances last year: Pizzi uses machine-hours as an activity base for overhead and used 48, 000 machine-hours as the denominator activity level for the year.Total actual fixed manufacturing overhead was $150, 000.The actual number of machine-hours incurred were 50, 000.What were Pizzi's standard hours allowed for actual output?

(Appendix 11A)Vette Tie Corporation has developed the following manufacturing overhead standards to use in applying overhead to the production of its hand-painted silk ties.Manufacturing overhead at Vette is applied to production on the basis of standard direct labor-hours (DLHs). The above standards were based on an expected annual volume of 60, 000 ties.The actual results for last year were as follows: What was Vette's variable overhead rate variance?

(Appendix 11A)A manufacturing company 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 overhead applied to products during the period was closest to:

(Appendix 11A)The Murray Corporation uses a standard cost system in which it applies manufacturing overhead on the basis of standard direct labor-hours (DLHs).The company recorded the following activity and cost data for May: The amount of fixed manufacturing overhead cost applied during May was:

(Appendix 11A)Pohl Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours.For June, the company's manufacturing overhead flexible budget showed the following total budgeted costs at a denominator activity level of 20, 000 machine-hours: During June, 17, 000 machine-hours were used to complete 13, 000 units of product, and the following actual total overhead costs were incurred: At standard, each unit of finished product requires 1.4 hours of machine time. The variable overhead efficiency variance for utilities cost for June was:

(Appendix 11A)Diseth Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The company bases its predetermined overhead rate on 5, 300 machine-hours.The company's total budgeted fixed manufacturing overhead is $12, 720.In the most recent month, the total actual fixed manufacturing overhead was $12, 370.The company actually worked 5, 350 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 5, 540 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

(Appendix 11A)Saffold Corporation has provided the following data for December. The budget variance for December is:

(Appendix 11A)Coblentz Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs)at $6.20 per MH.The company had budgeted its fixed manufacturing overhead cost at $40, 000 for the month.During the month, the actual total variable manufacturing overhead was $48, 970 and the actual total fixed manufacturing overhead was $43, 000.The actual level of activity for the period was 8, 300 MHs.What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

(Appendix 11A)Odonell Corporation estimates that its variable manufacturing overhead is $11.20 per machine-hour and its fixed manufacturing overhead is $563, 640 per period. If the denominator level of activity is 6, 100 machine-hours, the predetermined overhead rate would be:

(Appendix 11A)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 affects the fixed manufacturing overhead budget variance.

(Appendix 11A)Vette Tie Corporation has developed the following manufacturing overhead standards to use in applying overhead to the production of its hand-painted silk ties.Manufacturing overhead at Vette is applied to production on the basis of standard direct labor-hours (DLHs). The above standards were based on an expected annual volume of 60, 000 ties.The actual results for last year were as follows: What was Vette's fixed manufacturing overhead budget variance?

(Appendix 11A)In a standard costing system, if the actual fixed manufacturing overhead cost exceeds the budgeted fixed manufacturing overhead cost for the period, then fixed manufacturing overhead cost would be overapplied for the period.

(Appendix 11A)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 NOT necessarily occur in a month in which production volume differs from sales volume.

(Appendix 11A)A manufacturing company 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 variable overhead efficiency variance for the period is closest to:

(Appendix 11A)The higher the denominator activity level used to compute the predetermined overhead rate, the lower the predetermined overhead rate.

(Appendix 11A)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 budget variance for the period is closest to:

(Appendix 11A)Sulema, Inc.repairs and refinishes antique furniture.Manufacturing overhead at Sulema is applied to production on the basis of standard direct labor-hours.Which overhead variance(s)at Sulema would be unfavorably affected if the cost of solvents used to strip the old paint from the furniture unexpectedly doubles in price?

(Appendix 11A)Cajun Corporation manufactures a labor-intensive product.The cost standards developed by Cajun appear below.Manufacturing overhead at Cajun is applied to production on the basis of standard direct labor-hours: The standards above were based on an expected annual volume of 8, 000 units.The actual results for last year were as follows: Required: Compute the following variances for Cajun. a.Materials price variance. b.Materials quantity variance. c.Labor rate variance. d.Variable overhead rate variance. e.Variable overhead efficiency variance. f.Fixed overhead budget variance.

(Appendix 11A)Cuda Manufacturing Corporation uses a standard cost system with machine-hours (MHs)as the activity base for overhead.The following information relates to Cuda's operations last year: What was Cuda's fixed manufacturing overhead budget variance?

(Appendix 11A)The Dillon Corporation makes and sells a single product.Overhead costs are applied on the basis of standard direct labor-hours.The standard cost card shows that 5 direct labor-hours are required per unit.The Dillon Corporation had the following budgeted and actual data for March: The fixed manufacturing overhead volume variance for March is: