Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Questions 7-9 rely on the following data. FrontGrade Systems allocates manufactu

ID: 2426062 • Letter: Q

Question

Questions 7-9 rely on the following data. FrontGrade Systems allocates manufacturing overhead based on machine hours. Each connector should require 11 machine hours. According to the static budget, FrontGrade expected to incur the following 1,100 machine hours per month (100 connectors X 11 machine hours per connector) $5,500 in variable manufacturing overhcad costs $8,250 in fixed manufacturing overhead costs Horngren's Accounting. The Managerial Chapters. Eleventh Edition, by Tracie L. Miller-Nobles, Brenda L. Mattison, and Copyright © 2016 by Pearson Education, Inc. 1a Mae Matsumura Published by Pre 2 chapter 23 During August, FrontGrade actually used 1,000 machine hours to make 110 connectors and spent $5,600 in variable manufacturing costs and $8,300 in fixed manufacturing overhead costs Learning Objective 47. FrontGrade's standard variable manufacturing overhead allocation rate is a. $5.00 per machine hour. b. S5.50 per machine hour. c. $7.50 per machine hour d. S12.50 per machine hour. Learning Objective 48. Calculate the variable overhead cost variance for FrontGrade. a. $450 F b. $600 U c. $1,050 F d. $1,650 F Learning Objective 49. Calculate the variable overhead efficiency variance for FrontGrade. a. $450 F b. $600 U c. $1,050 F d. $1,650F

Explanation / Answer

7th ques

ans is 5.5 per machine hour $5500/1000machine hours

8th ques

variable overhead cost variance = std cost - actual cost

=$5000*- $5600

=$600U

*5500/1100 machine hours *1000 machince hours = $5000 cost variable

9th ques

The formula is:

Standard overhead rate x (Actual hours - standard hours)
= Variable overhead efficiency variance

ans $600U