8a-10a

dsc l th $ 15,400 underapplied overhead. Required: ohe predetermined overhead rate. Break the rate down into variable and fixed cost elements. Show how the $272,000 Applied figure in the Manufacturing Overhead account was computed. Analyze the $15,400 underapplied overhead figure in terms of the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances. 4. Explain the meaning of each variance that you computed in (3) above. PROBLEM 8A-10A Comprehensive Standard Cost Variances [LO8-4, LO8-5, LO8-6,Lo8-7] Wonderful! Not only did our salespeople do a good job in meeting the sales budget this year, but our pro- duction people did a g "Our $18,300 overall manufacturing cost variance is only 1.2% of the $1,536,000 standard cost of prod- ucts made during the year. That's well within the 3% parameter set by management for acceptable van. ances. It looks like everyone will be in line for a bonus this year." ts as well," said Kim Clark. artell Conm ompany. The company produces and sells a single product. The standard cost card for the product follows: Standard Cost Card-Per Unit Direct materials, 2 feet at $8.45 per foot. Direct labor, 1.4 direct labor-hours at $16 per direct labor-hour Variable overhead, 1.4 direct labor-hours at $2.50 per direct labor-hour .. Fixed overhead, 1.4 direct labor-hours at $6 per direct labor-hour........ Standard cost per unit . . $16.90 22.40 3.50 8.40 $51.20