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At Kelly corporation, variables manufacturing overhead(VMOH) expense varies directly with machine hours (MHs). For the month of February, their Standard costing performance report showed the
At Kelly corporation, variables manufacturing overhead(VMOH) expense varies directly with machine hours (MHs). For the month of February, their Standard costing performance report showed the following results: Standard MHs Allowed for Actual output 9400 MHs Actual machine hours 8,000 MHs Actual VMOH expenses $ 18,000 VMOH Rate variance $ 800 Unfavorable The VMOH standard rate used during the month of February was closest to: A. $ 1.83 per MH B. $ 2.00 per MH C. $ 2.15 per MH D. $ 2.35 per MH E. None of the above Kimber Company uses a standard costing system with direct labor (DLHs) as the allocation base for fixed manufacturing hours overhead (FMOH). The following relates to production for 2016: Budgeted (Denominator Activity 160,000 DLHs Standard DLHs Allowed for Actual Output 150,000 DLHs Actual DLHs 156,000 DLHs Actual FMOH incurred during the year $ 512,000 Under applied FMOH $39, 500 The FMOH Volume Variance for the year was closest to: A. $ 12, 600 Unfavorable B $ 29, 531 Unfavorable C $ 30, 288 Unfavorable D $ 31, 500 Unfavorable E None of the above
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