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89. If the denominator level of activity is 7,000 machine-hours, the predetermined overhead
rate would be:
90. If the denominator level of activity is 9,000 machine-hours, the variable element in the
predetermined overhead rate would be:
91. If the denominator level of activity is 9,000 machine-hours, the fixed element in the
predetermined overhead rate would be:
92. If the denominator level of activity is 9,100 machine-hours, the predetermined overhead
rate would be:
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:
93. What was the fixed manufacturing overhead budget variance for the period to the nearest
dollar?
11A-81
94. What was the fixed manufacturing overhead volume variance for the period to the nearest
dollar?
Buell Corporation has provided the following data for June.
95. The budget variance for June is:
96. The volume variance for June is:
97. The budget variance for April is:
98. The volume variance for April is:
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99. 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:
• The company manufactured 18,000 units of product during the year. A total of 70,200 yards of
material was purchased during the year at a cost of $3.75 per yard. All of this material was used
to manufacture the 18,000 units.
• The company worked 29,250 direct labor-hours during the year at a cost of $7.80 per hour.
• The denominator activity level was 22,500 direct labor-hours.
• Budgeted fixed manufacturing overhead costs were $135,000 while actual manufacturing
overhead costs were $133,200.
• Actual variable overhead costs were $61,425.
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.
11A-86
100. Mountain Manufacturing uses a standard cost system in which manufacturing overhead
is applied to units of product on the basis of standard machine-hours. At standard, each unit of
product requires one machine-hour to complete. The standard variable overhead is $1.75 per
machine-hour and Budgeted Fixed Manufacturing Costs are $300,000 per year. The denominator
level of activity is 150,000 machine-hours, or 150,000 units. Actual data for the year were as
follows:
Required:
a. What are the predetermined variable and fixed manufacturing overhead rates for the year?
b. Compute the variable overhead rate and efficiency variances for the year.
c. Compute the fixed manufacturing overhead budget and volume variances for the year.
101. 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!
102. Krouse Corporation's manufacturing overhead includes $14.70 per machine-hour for
variable manufacturing overhead and $191,580 per period for fixed manufacturing overhead.
Required:
Determine the predetermined overhead rate for the denominator level of activity of 3,100
machine-hours.
103. 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!
104. 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!
105. Dull Corporation applies overhead to products based on machine-hours. The denominator
level of activity is 8,600 machine-hours. The budgeted fixed manufacturing overhead costs are
$286,380. In October, the actual fixed manufacturing overhead costs were $274,330 and the
standard machine-hours allowed for the actual output were 8,400 machine-hours.
Required:
a. Compute the budget variance for October. Show your work!
b. Compute the volume variance for October. Show your work!
