Ritz Production Company has the following information:Standard factory overhead rates are based on a normal monthly volume of 10,000 units (1 standard direct hour per unit).Standard factory overhead rates per direct labor hour are:Fixed$3.00Variable5.00$8.00Units actually produced in current month9,000 units
Actual factory overhead costs incurred (includes $35,000 fixed)$78,000Actual direct labor hours9,000 hours186.What is the fixed overhead spending variance for Ritz? (E)a.$3,000 (U)d.$5,000 (F)b.$0e.$5,000 (U)c.$2,000 (F)187.What is the fixed overhead volume variance for Ritz? (E)a.$3,000(U)d.$5,000(F)b.$0e.$5,000(U)c.$2,000(F)188.What is the variable overhead spending variance for Ritz? (E)a.$43,000 (U)d.$5,000 (F)b.$0e.$5,000 (U)c.$2,000 (F)Questions 92 through 95 are based on the following information.BarfieldStandard Company has developed standard overhead costs based on a capacity of 180,000 machine hours as follows:Standard costs per unit:Variable portion 2 hours @ $3 =$ 6Fixed portion 2 hours @ $5 =10$16During April, 85,000 units were scheduled for production, but only 80,000 units were actually produced. The following data relate to April:Actual machine hours used were 165,000.Actual overhead incurred totaled $1,378,000 ($518,000 variable plus $860,000 fixed).All inventories are carried at standard cost.92.The variable overhead spending variance for April was (E)93.The variable overhead efficiency variance for April was (E)94.The fixed overhead spending variance for April was (E)95.The fixed overhead volume variance for April was (E)a.$60,000 U.c.$100,000 F.b.$60,000 F.d.$100,000 U.Questions 47 thru 52 are based on the following information.G & N 9eA manufacturing company has a standard costing system based on machine-hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:Denominator level of activity6,100 MHsOverhead costs at the denominator activity level:Variable overhead cost$35,075Fixed overhead cost$77,775The following data pertain to operations for the most recent period:
Actual hours6,300 MHsStandard hours allowed for the actual output5,994 MHsActual total variable overhead cost$36,540Actual total fixed overhead cost$76,87547.What is the predetermined overhead rate to the nearest cent? (E)48. How much overhead was applied to products during the period to the nearest dollar? (E)
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