Overhead information for Cran-Mar Company for October follows: Data Total overhead cost incurred.. $30,000 Budgeted fixed overhead
Question:
Overhead information for Cran-Mar Company for October follows:
Data | |
Total overhead cost incurred……………………………………………………………………….. | $30,000 |
Budgeted fixed overhead…………………………………………………………………………… | $7,125 |
Total standard overhead rate per machine hour (MH)………………………………………………… | $4.90 |
Standard variable overhead rate per MH…………………………………………………………… | $3.00 |
Standard MHs allows for the units manufactured……………………………………………………… | 3,600 |
Required
1. What is the standard fixed factory overhead rate per machine hour (MH)?
2. What is the denominator activity level that was used to establish the fixed overhead application rate?
3. Prepare a diagram such as the one in Exhibit 15.7, Panel 3 to calculate the following overhead
variances for October:
a. Total flexible-budget variance for factory overhead.
b. Fixed overhead production volume variance.
c. Total factory overhead cost variance.
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Related Book For
Cost Management A Strategic Emphasis
ISBN: 978-0078025532
6th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
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