Chapter 11 Flexible Budgets and Overhead Analysis Use the following to answer questions 71-74: Pohl Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard machine-hours. For June, the company's manufacturing overhead flexible budget showed the following total budgeted costs at a denominator activity level of 20,000 machine-hours: Variable overhead costs (total Maintenance..... $16,000 Utilities..... $10,000 Fixed overhead costs (total) Supervision.... $20,500 Depreciation. $9,500 During June, 17,000 machine-hours were used to complete 13,000 units of product, and the following actual total overhead costs were incurred: Variable overhead costs (total) Maintenance.. $14,620 Utilities.... $10,710 Fixed overhead costs (total) $19,320 Supervision....... Depreciation. $9,500 At standard, each unit of finished product requires 1.4 hours of machine time. 71. The variable overhead spending variance for maintenance cost for June was A) $1,020 F B) $1,020 U C) $3,230 F D) $3,230 U Answer: B Level: Medium LO:3 72. The variable overhead efficiency variance for utilities cost for June was A) $400 F B) $400 U C) 5600 F D) $600 U Answer: C Level: Medium 10:4 Garron Managerial Accounting 12th Edition Chapter 11 Flexible Budgets and Overhead Analysis 73. The total predetermined overhead rate per machine-hour for June was: A) $2.57 B) $1.30 C) $2.80 D) $3.15 Answer: C Level Medium LO:5 74. The fixed overhead budget variance (in total) for June was: A) $3,230 F B) $1,230 U C) $1,180 F D) $1,180 U Answer: C Level: Medium LO:6 577