Overhead information for Danielson Company for October follows: Total overhead incurred ............... $28,800 Budgeted fixed overhead ...............
Question:
Overhead information for Danielson Company for October follows:
Total overhead incurred …………………………………….............…….. $28,800
Budgeted fixed overhead …………………………………...............……… $7,200
Total standard overhead rate per machine hour (MH) …………… $4.50
Standard variable overhead rate per MH ………………………......… $3.00
Standard MHs allowed for the units manufactured …………...…… 3,500
Required
1. What is the standard fixed factory overhead rate per machine hour?
2. What is the denominator activity level that was used to establish the fixed overhead application note?
3. Prepare a diagram such as the one in Exhibit 15.7, Panel 3, to calculate the following overhead variances for October:
EXHIBIT 15.7
Schmidt Machinery Company, Overhead Variance Analyses, October 2010
Panel 1: Four-Variance Analysis
Panel 2: Three-Variance Analysis
Panel 3: Two-Variance Analysis
1. Total flexible-budget variance for factory overhead.
2. Factory overhead production-volume variance.
3. Total factory overhead variance.
Step by Step Answer:
1 Standard fixed factory overhead rate budgeted total overhead cost per machine hour ...View the full answer
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
