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

Rameriz Company erred in selecting a denominator activity and chose a much higher level than was realistic.This error would most likely result in a large:

Walkenhorst Corporation's manufacturing overhead includes $7.80 per machine-hour for supplies;$7.30 per machine-hour for indirect labor;$21,210 per period for salaries;and $19,950 per period for depreciation. Required: Determine the predetermined overhead rate if the denominator level of activity is 1,500 machine-hours.Show your work!

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: -What was the variable overhead rate variance for the period to the nearest dollar?

Sommers Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs)at $9.70 per MH.The company budgeted its fixed manufacturing overhead cost at $67,000 for the month.During the month,the actual total variable manufacturing overhead was $66,660 and the actual total fixed manufacturing overhead was $70,000.The actual level of activity for the period was 6,600 MHs.What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

The fixed manufacturing overhead budget variance is not controllable by managers because fixed costs are not controllable.

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: -What is the predetermined overhead rate to the nearest cent?

The Phelps Company applies overhead costs to products on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit of product. Phelps Company had the following budgeted and actual data for March: The budgeted direct labor-hours is used as the denominator activity for the month. -The fixed manufacturing overhead budget variance for March is:

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 volume variance was:

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 Fixed component of the predetermined overhead rate for June is:

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 amount of overhead that the company would apply to finished production would ordinarily be the standard hours allowed for the actual units of finished output times the predetermined overhead rate per direct labor-hour.

The Ammon Company uses a standard cost system in which manufacturing overhead is applied to units on the basis of standard machine-hours.During July,the company budgeted $350,000 in manufacturing overhead cost at a denominator activity of 25,000 machine-hours.At standard,each unit of finished product requires 5 machine-hours.The following cost and activity were recorded during July: The amount of overhead cost that the company applied to work in process for July was:

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 fixed manufacturing overhead volume variance as:

The budget variance represents the difference between the actual fixed manufacturing overhead cost incurred during a period and the budgeted fixed manufacturing overhead cost.

Sultzer 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 3,000 machine-hours.The company actually worked 2,730 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 2,690 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

Morisey Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $8.60 per machine-hour and fixed manufacturing overhead cost of $457,002 per period.If the denominator level of activity is 6,300 machine-hours,the predetermined overhead rate would be:

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

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 element of the predetermined overhead rate was (per DLH):

The Phelps Company applies overhead costs to products on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit of product. Phelps Company had the following budgeted and actual data for March: The budgeted direct labor-hours is used as the denominator activity for the month. -The variable overhead rate variance for March is:

A furniture 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 budget variance for the period to the nearest dollar?

Coskey 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 3,900 machine-hours.The company actually worked 3,580 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 3,770 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?