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

(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, 000 machine-hours, the fixed component in the predetermined overhead rate would be:

(Appendix 11A)Masek 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 fixed manufacturing overhead budget variance for the month?

(Appendix 11A)Oldham Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $4.00 per machine-hour and fixed manufacturing overhead cost of $87, 822 per period.If the denominator level of activity is 4, 100 machine-hours, the fixed component in the predetermined overhead rate would be:

(Appendix 11A)Steinhagen 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 2, 600 machine-hours.The company actually worked 2, 790 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 2, 960 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

(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 rate variance for the period was closest to:

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

(Appendix 11A)Nitrol Corporation manufactures brass vases using a standard cost system with standard machine-hours as the activity base for overhead.The following information relates to vase production at Nitrol for last year: The standard machine-hours per vase is 1.25.Last year Nitrol produced 84, 000 vases. What was Nitrol's fixed manufacturing overhead volume variance for last year?

(Appendix 11A)Dixie Corporation has provided the following data for June. Required: a.Compute the budget variance for June.Show your work! b.Compute the volume variance for June.Show your work!

(Appendix 11A)Aslett Corporation's manufacturing overhead includes $3.80 per machine-hour for supplies;$8.80 per machine-hour for indirect labor;$214, 132 per period for salaries;and $546, 720 per period for depreciation. Required: Determine the predetermined overhead rate if the denominator level of activity is 6, 800 machine-hours.Show your work!

(Appendix 11A)Semaan Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual overhead costs for the month appear below: The company based its original budget on 2, 700 machine-hours.The company actually worked 2, 960 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 3, 030 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

(Appendix 11A)The Forbes Corporation uses a standard cost system in which overhead costs are applied to products on the basis of standard direct labor-hours (DLHs).The following data applied to the company's activities for June: The fixed component of the predetermined overhead rate for June is:

(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 volume variance for the period is closest to:

(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 has no effect on the variable portion of the predetermined overhead rate.

(Appendix 11A)A fixed manufacturing overhead volume 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.

(Appendix 11A)In a standard costing system where the denominator activity for the predetermined overhead rate is labor-hours, overhead costs are applied to work in process on the basis of the standard labor-hours allowed for the actual output.

(Appendix 11A)Stenquist Corporation has provided the following data for January. Required: a.Compute the budget variance for January.Show your work! b.Compute the volume variance for January.Show your work!

(Appendix 11A)If all four of Argo Corporation's overhead variances are favorable, Argo's overhead will be underapplied.

(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 fixed manufacturing overhead budget variance (in total)for June was:

(Appendix 11A)A manufacturer of playground equipment 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)A volume variance is computed for: