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

Dosier 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?

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 volume variance for the period to the nearest dollar?

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 standard hours allowed for actual production for the year total:

Rubyor Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $10.70 per machine-hour and fixed manufacturing overhead cost of $821,104 per period.If the denominator level of activity is 7,300 machine-hours,the variable element in the predetermined overhead rate would be:

The Clayton Company uses a standard cost system in which manufacturing overhead costs are applied to units of the company's single product on the basis of standard direct labor-hours (DLHs).The standard cost card for the product follows: The following data pertain to last year's activities: Required: a.Compute the direct materials price and quantity variances for the year. b.Compute the direct labor rate and efficiency variances for the year. c.Compute the variable overhead rate and efficiency variances for the year. d.Compute the fixed manufacturing overhead budget and volume variances for the year.

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 budget variance for the period to the nearest dollar?

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 fixed element in the predetermined overhead rate would be:

Bahr 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!

Seroka Corporation estimates that its variable manufacturing overhead is $6.90 per machine-hour and its fixed manufacturing overhead is $745,290 per period. -If the denominator level of activity is 9,100 machine-hours,the predetermined overhead rate would be:

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 variable overhead rate variance for maintenance cost for November was:

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 is the predetermined overhead rate to the nearest cent?

In a standard cost system,the volume variance will be unfavorable when:

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 budget variance was:

Able Control Company, which manufactures electrical switches, uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of standard direct labor-hours (DLHs). The standard overhead costs are shown below: *Based on 300,000 DLHs per month. The following information is available for the month of October: • Plans called for the production of 60,000 switches. • 56,000 switches were actually produced. • 275,000 direct labor-hours were worked at a total cost of $2,550,000. • Actual variable manufacturing overhead costs were $2,340,000. • Actual fixed manufacturing overhead costs were $3,750,000. -The variable overhead efficiency variance for October 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: -What was the fixed manufacturing overhead budget variance for the period to the nearest dollar?

Buell Corporation has provided the following data for June. -The budget variance for June is:

The Chase Company has a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours (DLHs). The company recorded the following activity and cost data relating to manufacturing overhead for October: -The fixed manufacturing overhead budget variance for September was:

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 necessarily occur in a month in which there is a fixed manufacturing overhead budget variance.

Able Control Company, which manufactures electrical switches, uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of standard direct labor-hours (DLHs). The standard overhead costs are shown below: *Based on 300,000 DLHs per month. The following information is available for the month of October: • Plans called for the production of 60,000 switches. • 56,000 switches were actually produced. • 275,000 direct labor-hours were worked at a total cost of $2,550,000. • Actual variable manufacturing overhead costs were $2,340,000. • Actual fixed manufacturing overhead costs were $3,750,000. -The variable overhead rate variance for October was:

The Chase Company has a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours (DLHs). The company recorded the following activity and cost data relating to manufacturing overhead for October: -The amount of fixed manufacturing overhead cost applied to work in process during September was: