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

When computing standard cost variances,the difference between actual and standard price multiplied by actual quantity yields a(n):

Derf Corporation uses a standard cost system in which it applies manufacturing overhead on the basis of standard direct labor-hours.Two direct labor-hours are required for each unit produced.The denominator activity was set at 9,000 units.Manufacturing overhead was budgeted at $135,000 for the period;20 percent of this cost was fixed.The 17,200 hours worked during the period resulted in production of 8,500 units.Variable manufacturing overhead cost incurred was $108,500 and fixed manufacturing overhead cost was $28,000. The variable overhead rate variance for the period was:

The Adlake Corporation makes and sells a single product and uses a standard cost system.During October,the company budgeted $300,000 in manufacturing overhead cost at a denominator activity of 20,000 machine-hours.At standard,each unit of finished product requires 5 machine-hours.The following cost and activity were recorded during October: The amount of overhead cost that the company applied to work in process for October was:

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?

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 fixed component in the predetermined overhead rate would be:

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.

Acuff 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 6,200 machine-hours.The company actually worked 6,560 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 6,420 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

The higher the denominator activity level used to compute the predetermined overhead rate,the lower the predetermined overhead rate.

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:

The fixed manufacturing overhead budget variance is:

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?

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 fixed manufacturing overhead budget variance for May was:

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 predetermined fixed manufacturing overhead rate is closest to:

A favorable volume variance means that the company operated at an activity level greater than that planned for the period.

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 the fixed manufacturing overhead applied to units of product on the basis of standard hours allowed differs from the budgeted fixed manufacturing overhead.

Derf Corporation uses a standard cost system in which it applies manufacturing overhead on the basis of standard direct labor-hours.Two direct labor-hours are required for each unit produced.The denominator activity was set at 9,000 units.Manufacturing overhead was budgeted at $135,000 for the period;20 percent of this cost was fixed.The 17,200 hours worked during the period resulted in production of 8,500 units.Variable manufacturing overhead cost incurred was $108,500 and fixed manufacturing overhead cost was $28,000. The fixed manufacturing overhead budget variance for the period was:

Tropiano 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 $62,100 for the month and its level of activity at 3,200 MHs.The actual total fixed manufacturing overhead was $61,600 for the month and the actual level of activity was 3,000 MHs.What was the fixed manufacturing overhead budget variance for the month to the nearest dollar?

The following data for February has been provided by Gillard Corporation. The volume variance for February is:

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!

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: