Exam 23: Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

The terms "standard quantity allowed" or "standard hours allowed" means:

Heroman Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The budgeted fixed manufacturing overhead cost for the most recent month was $26,550 and the actual fixed manufacturing overhead cost for the month was $26,570.The company based its original budget on 5,900 machine-hours.The standard hours allowed for the actual output of the month totaled 5,750 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

Moralez 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 total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

The Steff Company has the following flexible budget (in condensed form) for manufacturing overhead: The following data concerning production pertain to last year's operations: -The fixed manufacturing overhead cost applied to work in process was:

The Chase Company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of standard machine-hours. For November, the company's flexible budget for manufacturing overhead showed the following total budgeted costs at the denominator activity level of 40,000 machine-hours: During November 42,000 machine-hours were used to complete 13,200 units of product with the following actual overhead costs: The standard time allowed to complete one unit of product is 3.6 machine-hours. -The fixed manufacturing overhead budget variance for November was:

Hereford Corporation has provided the following data for February. Required: a.Compute the budget variance for February.Show your work! b.Compute the volume variance for February.Show your work!

Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires two standard hours of direct labor for completion. The denominator activity for the year was based on budgeted production of 200,000 units. Total overhead was budgeted at $900,000 for the year, and the fixed manufacturing overhead rate was $1.50 per direct labor-hour. The actual data pertaining to the manufacturing overhead for the year are presented below: -The fixed manufacturing overhead applied to Franklin's production for the year is:

At the end of the year,actual manufacturing overhead costs were $110,000 and applied manufacturing overhead costs were $118,800.If the denominator activity for the year was 20,000 machine-hours,and if 22,000 standard machine-hours were allowed for the year's production,the predetermined overhead rate per machine-hour was:

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

Temores Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The company's predetermined overhead rate for fixed manufacturing overhead is $1.50 per machine-hour and the denominator level of activity is 5,600 machine-hours.In the most recent month,the total actual fixed manufacturing overhead was $8,510 and the company actually worked 5,840 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 5,980 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

The following data for April has been provided by Mittler Corporation. -The budget variance for April is:

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: -What was the fixed manufacturing overhead volume variance for the period to the nearest dollar?

The Chase Company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of standard machine-hours. For November, the company's flexible budget for manufacturing overhead showed the following total budgeted costs at the denominator activity level of 40,000 machine-hours: During November 42,000 machine-hours were used to complete 13,200 units of product with the following actual overhead costs: The standard time allowed to complete one unit of product is 3.6 machine-hours. -The total predetermined overhead rate per machine-hour for November was:

Favreau Corporation estimates that its variable manufacturing overhead is $6.10 per machine-hour and its fixed manufacturing overhead is $352,590 per period. -If the denominator level of activity is 6,900 machine-hours,the variable element in the predetermined overhead rate would be:

If the fixed manufacturing overhead volume variance is unfavorable,too much has been spent on fixed manufacturing overhead items.

A manufacturer of industrial equipment 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: -How much overhead was applied to products during the period to the nearest dollar?

The Steff Company has the following flexible budget (in condensed form) for manufacturing overhead: The following data concerning production pertain to last year's operations: -The variable element of the predetermined overhead rate was (per DLH):

Rostad 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 7,100 machine-hours.The company actually worked 7,060 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 6,990 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

The Malcolm Company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of standard direct labor-hours (DLHs). The standards call for 3 hours of direct labor per unit produced. The following data pertain to the company's manufacturing overhead for the month of July: -The volume variance for July is:

The Dodge Company makes and sells a single product and uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit of product. The Dodge Company had the following budgeted and actual data for the year: The budgeted direct labor-hours is used as the denominator activity for the month. -The variable overhead efficiency variance was: