# Quiz 8 Solutions - 1 Answer the following questions using...

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1. Answer the following questions using the information below: Christine Corporation manufactures baseball uniforms and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data: Budgeted output units 10,000 units Budgeted machine-hours 15,000 hours Budgeted variable manufacturing overhead costs for 20,000 machine-hours\$180,000 Actual output units produced 9,000 units Actual machine-hours used 14,000 hours Actual variable manufacturing overhead costs \$171,000 What is the budgeted variable overhead cost rate per output unit? A) \$12.00 B) \$12.21 C) \$13.50 D) \$19.00 Answer: Budgeted variable manufacturing overhead costs for 20,000 machine-hours\$180,000 Budgeted variable manufacturing overhead costs for 15,000 machine-hours\$135,000* * (\$180,000*15,000hours)/20,000 hours=\$135,000 or 20,000:180,000=15,000:x x=135,000 Budgeted variable overhead cost rate per output unit=\$135,000/10,000units=\$13.5/unit C
2. Answer the following questions using the information below: Brown Corporation manufactured 3,000 chairs during June. The following variable overhead data pertain to June:
Budgeted variable overhead cost per unit \$ 12.00 Actual variable manufacturing overhead cost \$33,600 Flexible-budget amount for variable manufacturing overhead \$36,000 Variable manufacturing overhead efficiency variance \$720 unfavorable What is the variable overhead flexible-budget variance? A