Need some help with these, I get them all wrong, i would love the ancwers and an

Question

Need some help with these, I get them all wrong, i would love the ancwers and an explination, thnaks

Rodarta Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's predetermined overhead rate for fixed manufacturing overhead is $1.20 per machine-hour and the denominator level of activity is 6,600 machine-hours. In the most recent month, the total actual fixed manufacturing overhead was $8,340 and the company actually worked 6,400 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,480 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month? Multiple Choice $240 Favorable $144 Unfavorable $240 Unfavorable $96 Favorable

Explanation / Answer

QUESTION 1

Predetermined overhead rate = $1.20 per MH

Budgeted Hours = 6,600 Hours

Volume variance = Predetermined overhead rate x (Total Machine hours – Budgeted Hours)

= $1.20 per MH × (6480 Machine hours – 6600 Machine hours)

= $2.20 per MH × 120 Machine Hours

= $144 F

QUESTION 2

Labor Rate variance

= ( AHXAR ) - ( AHXSR )

= (10900 X $15.65*) - (10900 X $15.90)

= $170585 - $173310

= $2725 Favorable

*$170585 / 10900 = $15.65

QUESTION 3

The standard hours allowed for December's production = 4,750 Hours

Labor efficiency variance = (AH ? SH) × SR

$2800 = (5100 hour ? SH) × $8 per hour

$2800 = $40800 – 8SH

8SH   = $40800 – 2800

8SH   = $38000

SH     = $38000 / 8

SH     = 4,750 Hours

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