0. A manufacturing company uses a standard costing system in which standard mach

Question

0.

A manufacturing company uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:

The following data pertain to operations for the most recent period:

The fixed manufacturing overhead budget variance for the period is closest to:

$3,916 U

$3,900 F

$646 F

$1,070 F

11.

A manufacturing company uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:

The following data pertain to operations for the most recent period:

The overhead applied to products during the period was closest to: (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

$124,620

$124,322

$120,900

$121,880

A manufacturing company uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:

Explanation / Answer

Ans. Fixed overhead Budget Variance = Fixed Overhead Budgeted-Actual Fixed Overhead

                                                            = $85800-$84730 = $1070 (F)

2. Calculation of Overhead applied to actual production as per standard costing

Variable overhead applied = $31680/6500 = 4.87X6684 =$32551

Fixed overhead applied      = $89220/6500 = 13.73X6684=$91771

total factory overhead applied                                           = $124322

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