Comments: Question 4. Question : (TCO 10) Sebastian Company, which manufactures electrical switches, uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below: Variable overhead (5 hours at $12 per direct manufacturing labor hour) Fixed overhead (5 hours at $15 per direct manufacturing labor hour, based on capacity of 200,000 direct manufacturing labor hours per month) Total overhead per switch$ 1The following information is available for the month of December:46,000 switches were produced, although 40,000 switches were scheduled to be produced. 225,000 direct manufacturing labor hours were worked at a total cost of $5,625,000. Variable manufacturing overhead costs were $2,750,000. Fixed manufacturing overhead costs were $3,050,000. Under the 2-variance method, the flexible-budget variance for December was$
Points Received: 6 of 6Comments: Question 5. Question : (TCO 10) Budgeted overhead costs rates can be expressed as an amount per unit of output or per unit of input.
Instructor Explanation: See Chapter 8.