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 company used a denominator activity of 15,000 direct labor-hours to compute the
predetermined overhead rate.
• The company made 6,850 units of product and worked 14,200 actual hours during the year.
• Actual variable manufacturing overhead was $15,904 and actual fixed manufacturing overhead
was $30, s850 for the year.
• The standard direct labor time is two hours per unit of product.
69. The variable element of the predetermined overhead rate was (per DLH):
70. The fixed element of the predetermined overhead rate was (per DLH):
71. The fixed manufacturing overhead cost applied to work in process was:
72. The fixed manufacturing overhead budget variance was:
11A–64
73. The volume variance was:
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:
74. What is the predetermined overhead rate to the nearest cent?
75. How much overhead was applied to products during the period to the nearest dollar?
76. What was the fixed manufacturing overhead budget variance for the period to the nearest
dollar?
11A–67
77. What was the fixed manufacturing overhead volume variance for the period to the nearest
dollar?
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:
78. What is the predetermined fixed manufacturing overhead rate to the nearest cent?
79. How much fixed manufacturing overhead was applied to products during the period to the
nearest dollar?
80. What was the fixed manufacturing overhead budget variance for the period to the nearest
dollar?
11A–70
81. What was the fixed manufacturing overhead volume variance for the period to the nearest
dollar?
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:
82. The amount of fixed manufacturing overhead cost that was estimated for September
was:
83. The amount of fixed manufacturing overhead cost applied to work in process during
September was:
11A–73
84. The fixed manufacturing overhead budget variance for September was:
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:
85. What is the predetermined overhead rate to the nearest cent?
86. How much overhead was applied to products during the period to the nearest dollar?
87. If the denominator level of activity is 6,900 machine-hours, the variable element in the
predetermined overhead rate would be:
88. If the denominator level of activity is 6,900 machine-hours, the fixed element in the
predetermined overhead rate would be: