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The standard cost card for the single product manufactured by cutter, incorporated, ls given below: table [ [ Inputs , table [ [
The standard cost card for the single product manufactured by cutter, incorporated, ls given below:
tableInputstable StandardQuantity orHourstable Standardor RatePrice,Direct materials, yards,$ per,yard,Direct labor, hours,$ per,hour,Variable overhead, hours,$ per,hour,Fixed overhead, hours,$ per,houts,Total standard cost,,,,
Manufacturing overhead is applied to production based on standard dilect laborhours. During the year, the company worked hours and manufactured units. Selected data relating to the company's fixed manufacturing overhead cost for the year are shown below:
Actual Fixed Overhead $
Budgeted Fixed Overhead
Fixed Overhead Applied to Work in Process hours per hour $
Budget variance $
Volume variance $
Required:
What were the standard hours allowed for the year's production?
What was the amount of budgeted fixed overhead cost?
What was the fixed overhead budget variance?
Note: Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and "None" for no effect ie zero variance Input all amounts as positive values.
What denominator activity level did the company use in setting the predetermined overhead rate?
table Standard hours allowed for the year's production,,DLHs Budgeted fixed overhead cost,, Budget variance,,DLHs Denominator activity,,
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