PlasticsRus Pty Ltd manufactured 100 000 buckets during February. The overhead cost-allocation base is $5.00 per machine-hour. The following variable overhead data pertain to February: Actual Budgeted Production 100 000 units 100 000 units Machine-hours 9800 hours 10 000 hours Variable overhead cost per machine-hour $5.25 $5.00 What is the variable overhead efficiency variance? a. $1000 favourable b. $1450 unfavourable c. $2450 unfavourable d. $2450 favourable e. No correct answer

Wagga Wagga Textiles is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Tumut Brass Band band jacket job. Company Tumut Brass Band Job Direct materials $40 000 $1000 Direct labour $10 000 $ 200 Manufacturing overhead costs $30 000 Machine-hours 100 000 mh 900 mh What amount of manufacturing overhead costs will be allocated to Band job? Note: round up the overhead allocation rate to two decimal a. $270 b. $720 c. $30 000 d. $450 e. No correct ans

Because the Goulburn Company used a budgeted indirect-cost rate for its manufacturing operations, the amount allocated ($200 000) was different from the actual amount incurred ($225 000). Ending balances in the relevant accounts are: Work in process $10 000 Finished goods 20 000 Cost of goods sold 170 000 What is the journal entry used to write off the difference between allocated and actual overhead using the proration approach? a. Manufacturing Overhead Control 225 000 Work-in-Process Control 1250 Finished Goods Control 2500 Cost of Goods Sold 21 250 Manufacturing Overhead Allocated 200 000 b. Manufacturing Overhead Allocated 200 000 Work-in-Process Control 10 000 Finished Goods Control 20 000 Manufacturing Overhead Control 230 000 c. Manufacturing Overhead Allocated 225 000 Work-in-Process Control 1250 Finished Goods Control 2500 Cost of Goods Sold 21 250 Manufacturing Overhead Control 200 000 d. Manufacturing Overhead Allocated 200 000 Work-in-Process Control 1250 Finished Goods Control 2500 Cost of Goods Sold 21 250 Manufacturing Overhead Control 225 000