Chapter 111
Chapter 111
Chapter 111
145. Flick Company uses a standard cost system in which manufacturing overhead is
applied to units of product on the basis of standard direct labor-hours. The company's
total budgeted variable and fixed manufacturing overhead costs at the denominator
level of activity are $20,000 for variable overhead and $30,000 for fixed overhead.
The predetermined overhead rate, including both fixed and variable components, is
$2.50 per direct labor-hour. The standards call for two direct labor-hours per unit of
output produced. Last year, the company produced 11,500 units of product and worked
22,000 direct labor-hours. Actual costs were $22,500 for variable overhead and
$31,000 for fixed overhead.
Required:
Ans:
146. Wattis Manufacturing has established the following master flexible budget:
Required:
a. The denominator activity level is 150,000 units. What are the predetermined
variable and fixed manufacturing overhead rates?
b. Actual data for the year were as follows:
Compute the variable overhead spending and efficiency variances and the fixed
overhead budget and volume variances for the year.
Ans: