Bartoletti Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $8.90 per MH. The company had budgeted its fixed manufacturing overhead cost at $66,000 for the month. During the month, the actual total variable manufacturing overhead was $66,900 and the actual total fixed manufacturing overhead was $69,000. The actual level of activity for the period was 7,000 MHs. What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

Multiple Choice

• $7,600 Favorable

• $4,600 Favorable

• $4,600 Unfavorable

• $7,600 Unfavorable

Arona Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are attached to a canoe- shaped aluminum frame. The canoes are then transferred to the Waterproofing department to be coated with sealant. Arona uses a weighted-average process cost system to collect costs in both departments.

All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the Fabrication Department had 30 canoes in process that were 20% complete with respect to conversion cost. On July 31, Fabrication had 20 canoes in process that were 40% complete with respect to conversion cost. During July, the Fabrication Department completed 72 canoes and transferred them to the Waterproofing Department.

What are the Fabrication Department's equivalent units of production related to conversion costs for July?

Multiple Choice

• 102

• 64

• 80

• 92

A manufacturing company has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:

Denominator level of activity	6,100	DLHs
Overhead costs at the denominator activity level:
Variable overhead cost	$ 31,640
Fixed overhead cost	$ 79,380

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

Actual hours	6,300	DLHs
Standard hours allowed for the actual output	6,284	DLHs
Actual total variable manufacturing overhead cost	$ 30,820
Actual total fixed manufacturing overhead cost	$ 97,360

The overhead applied to products during the period was closest to:

Multiple Choice

• $112,000

• $111,020

• $114,369

• $114,660