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

The Murray Corporation makes and sells a single product.The company recorded the following activity and cost data for May: The fixed component of the predetermined overhead rate is $0.95 per direct labor-hour. The fixed manufacturing overhead used to calculate the predetermined overhead rate was:

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 volume variance for the period was:

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 variable component in the predetermined overhead rate would be:

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 1,100 machine-hours,the predetermined overhead rate would be:

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 total amount of manufacturing overhead cost (variable and fixed)did Vette apply to the 58,000 ties produced during the year?

Kingdon Corporation's manufacturing overhead includes $7.10 per machine-hour for variable manufacturing overhead and $207,000 per period for fixed manufacturing overhead. Required: Determine the predetermined overhead rate for the denominator level of activity of 4,600 machine-hours.

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.

An unfavorable volume variance means that a firm operated at an activity level that was below the activity level planned for the period.

The Murray Corporation makes and sells a single product.The company recorded the following activity and cost data for May: The fixed component of the predetermined overhead rate is $0.95 per direct labor-hour. The fixed manufacturing overhead budget variance for May was:

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 variable overhead rate variance for March is:

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.

The Claus Corporation makes and sells a single product and uses standard costing.During January,the company actually used 8,700 direct labor-hours (DLHs)and produced 3,000 units of product.The standard cost card for one unit of product includes the following: Variable factory overhead: 3.0 DLHs @ $4.00 per DLH. Fixed factory overhead: 3.0 DLHs @ $3.50 per DLH. For January,the company incurred $22,000 of actual fixed manufacturing overhead costs and recorded a $875 favorable volume variance. The denominator level of activity in direct labor-hours (DLHs)used by Claus in setting the predetermined overhead rate for January is:

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?

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:

Saffold Corporation has provided the following data for December. The volume variance for December is:

Littleton Manufacturing uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard machine-hours.At standard,each unit of product requires one machine-hour to complete.The standard variable overhead is $1.80 per machine-hour and $432,000 per year.The denominator level of activity is 120,000 machine-hours,or 120,000 units.Actual data for the year were as follows: Required: a.What are the predetermined variable and fixed manufacturing overhead rates? b.Compute the variable overhead rate and efficiency variances. c.Compute the fixed manufacturing overhead budget and volume variances.

An outdoor barbecue grill manufacturer has a standard costing system based on standard direct labor-hours (DLHs)as 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:

An outdoor barbecue grill manufacturer has a standard costing system based on standard direct labor-hours (DLHs)as 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:

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 fixed manufacturing overhead budget variance was:

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 predetermined overhead rate is closest to: