Chapter 10 Appendix A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
34. Behring Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. Budgeted and actual fixed manufacturing overhead costs for the most recent
month appear below:
The company based its original budget on 3,200 machine-hours. The company actually
worked 3,170 machine-hours during the month. The standard hours allowed for the actual
output of the month totaled 3,250 machine-hours. What was the overall fixed manufacturing
overhead volume variance for the month?
Chapter 10 Appendix A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
35. Trecroci Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. The company bases its predetermined overhead rate on 2,500 machine-hours.
The company’s total budgeted fixed manufacturing overhead is $5,750. In the most recent
month, the total actual fixed manufacturing overhead was $6,030. The company actually
worked 2,600 machine-hours during the month. The standard hours allowed for the actual
output of the month totaled 2,490 machine-hours. What was the overall fixed manufacturing
overhead volume variance for the month?
Chapter 10 Appendix A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
10A–26
36. Temores Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. The company’s predetermined overhead rate for fixed manufacturing
overhead is $1.50 per machine-hour and the denominator level of activity is 5,600 machine-
hours. In the most recent month, the total actual fixed manufacturing overhead was $8,510
and the company actually worked 5,840 machine-hours during the month. The standard hours
allowed for the actual output of the month totaled 5,980 machine-hours. What was the overall
fixed manufacturing overhead volume variance for the month?
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:
Chapter 10 Appendix A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
37. The standard hours allowed for actual production for the year total:
38. Franklin’s variable overhead efficiency variance for the year is:
Chapter 10 Appendix A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
39. Franklin’s variable overhead rate variance for the year is:
40. Franklin’s fixed manufacturing overhead budget variance for the year is:
Chapter 10 Appendix A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
41. The fixed manufacturing overhead applied to Franklin’s production for the year is:
42. Franklin’s fixed manufacturing overhead volume variance for the year is:
Chapter 10 Appendix A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
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:
43. What is the predetermined overhead rate to the nearest cent?
Chapter 10 Appendix A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
44. How much overhead was applied to products during the period to the nearest dollar?
45. What was the variable overhead rate variance for the period to the nearest dollar?
Chapter 10 Appendix A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
46. What was the variable overhead efficiency variance for the period to the nearest dollar?
47. What was the fixed manufacturing overhead budget variance for the period to the nearest
dollar?
Chapter 10 Appendix A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
48. What was the fixed manufacturing overhead volume variance for the period to the nearest
dollar?
Chapter 10 Appendix A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
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.
49. The total predetermined overhead rate per machine-hour for November was:
Chapter 10 Appendix A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
50. The total amount of overhead cost applied to Work in Process during November was:
51. The variable overhead efficiency variance for utilities cost for November was:
Chapter 10 Appendix A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
52. The variable overhead rate variance for maintenance cost for November was:
53. The fixed manufacturing overhead budget variance for November was:
Chapter 10 Appendix A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
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.
54. The variable overhead rate variance for March is:
Chapter 10 Appendix A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
55. The variable overhead efficiency variance for March is:
56. The fixed manufacturing overhead budget variance for March is:
Chapter 10 Appendix A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
10A–39
57. The fixed manufacturing overhead volume variance for March is:
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.
Chapter 10 Appendix A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
58. The variable overhead rate variance was:
59. The variable overhead efficiency variance was:
Chapter 10 Appendix A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
60. The fixed manufacturing overhead budget variance was:
61. The fixed manufacturing overhead volume variance as:
Chapter 10 Appendix A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
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.
62. The fixed manufacturing overhead budget variance for October was:
Chapter 10 Appendix A Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System
63. The variable overhead rate variance for October was:
64. The variable overhead efficiency variance for October was: