FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 19: Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

Wolle Corporation estimates that its variable manufacturing overhead is $11.60 per machine-hour and its fixed manufacturing overhead is $298,936 per period. -If the denominator level of activity is 4,400 machine-hours,the predetermined overhead rate would be:

A) $67.94
B) $79.54
C) $1,160.00
D) $11.60

E) B) and C)
F) All of the above

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

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

A) $313 U
B) $607 F
C) $920 F
D) $513 F

E) C) and D)
F) All of the above

Correct Answer

verified

B

Question 3

Multiple Choice

Review LaterAdd Note

A manufacturer of playground 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: -What is the predetermined fixed manufacturing overhead rate to the nearest cent?

Gayman Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The company bases its predetermined overhead rate on 7,300 machine-hours.The company's total budgeted fixed manufacturing overhead is $28,470.In the most recent month,the total actual fixed manufacturing overhead was $28,940.The company actually worked 7,510 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 7,670 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

The Ferris Company applies manufacturing overhead costs to products on the basis of standard direct labor-hours.The standard cost card shows that 3 direct labor-hours are required per unit of product.For August,the company budgeted to work 90,000 direct labor-hours and to incur the following total manufacturing overhead costs: During August,the company completed 28,000 units of product,worked 86,000 direct labor-hours,and incurred the following total manufacturing overhead costs: The denominator activity in the predetermined overhead rate is 90,000 direct labor-hours. -For August,the fixed manufacturing overhead volume variance is:

Jessep Corporation has a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours.The company has provided the following data concerning its fixed manufacturing overhead costs in March: -The fixed manufacturing overhead budget variance is:

Michetti 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 4,300 machine-hours.The company actually worked 4,140 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 4,200 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

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 actual direct labor-hours times the predetermined overhead rate per direct labor-hour.

If the denominator activity (in hours) used to compute the predetermined overhead rate is equal to the actual activity (in hours) for the period,then there is no volume variance.

Macdowell Corporation's manufacturing overhead includes $2.50 per machine-hour for supplies;$3.50 per machine-hour for indirect labor;$214,200 per period for salaries;and $307,020 per period for depreciation. Required: Determine the predetermined overhead rate if the denominator level of activity is 8,500 machine-hours.Show your work!

The economic impact of the inability to reach a target denominator level of activity would best be measured by:

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

Sheeder Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $18.70 per machine-hour and fixed manufacturing overhead cost of $1,817,202 per period.If the denominator level of activity is 8,200 machine-hours,the fixed element in the predetermined overhead rate would be:

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

Wintersmith Corporation estimates that its variable manufacturing overhead is $11.60 per machine-hour and its fixed manufacturing overhead is $278,124 per period. -If the denominator level of activity is 4,200 machine-hours,the variable element in the predetermined overhead rate would be:

Hugh 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 6,700 machine-hours.The company actually worked 6,810 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 6,940 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

Wolle Corporation estimates that its variable manufacturing overhead is $11.60 per machine-hour and its fixed manufacturing overhead is $298,936 per period. -If the denominator level of activity is 4,300 machine-hours,the fixed element in the predetermined overhead rate would be:

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: -How much overhead was applied to products during the period to the nearest dollar?

Glasner Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $2.70 per machine-hour and fixed manufacturing overhead cost of $289,784 per period.If the denominator level of activity is 8,800 machine-hours,the variable element in the predetermined overhead rate would be:

The Moore Company produces and sells a single product.A standard cost card for the product follows: Standard Cost Card--per unit of product: The company manufactured and sold 18,000 units of product during the year.A total of 70,200 yards of material was purchased during the year at cost of $4.20 per yard.All of this material was used to manufacture the 18,000 units.The company records showed no beginning or ending inventories for the year. The company worked 29,250 direct labor-hours during the year at a cost of $9.75 per hour.Overhead cost is applied to products on the basis of standard direct labor-hours.The denominator activity level (direct labor-hours) was 22,500 hours.Budgeted fixed manufacturing overhead costs as shown on the flexible budget were $157,500,while actual fixed manufacturing overhead costs were $156,000.Actual variable overhead costs were $90,000. 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.