. Crown Industries has the following information about its standards and production activity for December:
Actual manufacturing overhead cost incurred, $92,500
Variable manufacturing overhead cost @ $3.25 per unit produced
Fixed manufacturing overhead cost @ $1.50 per unit produced
($22,500/15,000 budgeted units)
Actual units produced, 5,400
Assume the allocation base for fixed overhead costs is the number of units to be produced.
How much are the total applied overhead for the month?
Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires two standard hours of direct labor for completion. The denominator activity for the year was based on budgeted production of 200,000 units. Total overhead was budgeted at $900,000 for the year, and the fixed manufacturing overhead rate was $1.50 per direct labor-hour. The actual data pertaining to the manufacturing overhead for the year are presented below:
26. The standard hours allowed for actual production for the year total:
27. Franklin’s variable overhead efficiency variance for the year is:
A. $33,000 unfavorable
B. $35,200 favorable
C. $35,200 unfavorable
D. $33,000 favorable
28. Franklin’s variable overhead rate variance for the year is:
A. $20,000 unfavorable
B. $22,000 favorable
C. $22,000 unfavorable
D. $20,000 favorable
29. The fixed manufacturing overhead applied to Franklin’s production for the year is:
30. Franklin’s Production volume variance for the year is:
A. $6,000 unfavorable
B. $19,000 favorable
C. $25,000 favorable
D. $55,000 unfavorable
Hadlock Company, which has only one product, has provided the following data concerning its most recent month of operations:
31. What is the total period cost for the month under the variable costing approach?
32. What is the net operating income for the month under variable costing?
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