Exam 15: Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

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 total predetermined overhead rate per machine-hour for June was:

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!

Traveller Corporation sells one product and uses a standard cost system.Last year the overhead volume variance was zero.Which of the following is correct?

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 rate variance for maintenance cost for June was:

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 total amount of manufacturing overhead cost (variable and fixed)did Cuda apply to production?

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:

You have just been hired as the new executive assistant to the manager of the Eastern Division of Global Manufacturing.You have been given the following incomplete records concerning manufacturing overhead for last year: The company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of standard direct labor-hours (DLHs). Required: a.Compute the variable overhead rate variance and indicate whether it was favorable or unfavorable. b.Compute the fixed overhead volume variance and indicate whether it was favorable or unfavorable.

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 overhead applied to products during the period was closest to:

Homer Corporation has a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours.The company has provided the following data concerning its manufacturing overhead costs for last year: The volume variance was:

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!

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 applied to products during the period is closest to:

Denby 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 6,400 machine-hours.The company actually worked 6,710 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 6,540 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

Pierce Corporation uses a standard cost system in which it applies manufacturing overhead to its product on the basis of standard direct labor-hours (DLHs).Below is the standard cost card for the product: Last year,the company produced 6,000 units of product using 17,000 direct labor-hours.The actual total fixed manufacturing overhead cost for the year was $140,000 and the volume variance was $12,000,favorable. Required: a.Determine the budgeted amount of total fixed manufacturing overhead cost. b.Determine the denominator activity figure that the company used in computing predetermined overhead rates.

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?

Tillinghast Corporation estimates that its variable manufacturing overhead is $9.60 per machine-hour and its fixed manufacturing overhead is $14,630 per period. If the denominator level of activity is 1,000 machine-hours,the variable component in the predetermined overhead rate would be:

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:

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:

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 total underapplied or overapplied overhead cost for last year?

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 volume variance for June is:

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: