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GNBExam11 - GNB 12e Practice Exam Chapter 11 1 The Duvall...

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GNB 12e Practice Exam – Chapter 11 1. The Duvall Company applies manufacturing overhead costs to products on the basis of direct labor-hours. The standard cost card shows that 6 direct labor-hours are required per unit of product. The company estimated that it would work 180,000 direct labor-hours and incur the following manufacturing overhead costs for the month of March: Total fixed overhead costs $237,600 Total variable overhead costs $198,000 During March, the company completed 28,000 units of product, worked 172,000 direct labor-hours, and incurred the following total manufacturing overhead costs: Total fixed overhead costs $230,600 Total variable overhead costs $197,800 The denominator activity used to calculate its predetermined overhead rate was 180,000 direct labor-hours. Part (a) What is the variable overhead (VOH) spending variance for March? First, compute the variable overhead (VOH) rate as follows: VOH rate = Budgeted variable overhead costs ÷ budgeted direct labor hours
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This note was uploaded on 07/15/2010 for the course ECON 137A taught by Professor Watson during the Fall '08 term at UCSB.

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GNBExam11 - GNB 12e Practice Exam Chapter 11 1 The Duvall...

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