Homework%20Ch%208%20Key - Student ACCT 3270 Homework...

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Student ___________________________ ACCT 3270 Homework Chapter 8 1. Shimon Corporation manufactures industrial-sized water coolers and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data: Budgeted output units 15,000 units Budgeted machine-hours 5,000 hours Budgeted variable manufacturing overhead costs for 15,000 units $161,250 Actual output units produced 22,000 units Actual machine-hours used 7,200 hours Actual variable manufacturing overhead costs $242,000 A. What is the budgeted variable overhead cost rate per output unit? $161,250/15,000 = $10.75 B. What is the flexible-budget amount for variable manufacturing overhead? 22,000 × ($161,250/15,000) = $236,500 C. What is the flexible-budget variance for variable manufacturing overhead? $242,000 - [22,000 × ($161,250/15,000)] = $5,500 unfavorable D. Actual variable manufacturing overhead costs were higher, lower, or the same as expected? higher than expected
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2. Jenny's Corporation manufactured 25,000 grooming kits for horses during March. The fixed-overhead cost- allocation rate is $20.00 per machine-hour. The following fixed overhead data pertain to March: Actual Static Budget Production 25,000 units 24,000 units Machine-hours 6,100 hours 6,000 hours Fixed overhead costs for March $123,000 $120,000 A. What is the flexible-budget amount of fixed overhead costs?
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