Flick Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labour-hours.The company's total budgeted variable and fixed manufacturing overhead costs at the denominator level of activity are $20,000 for variable overhead and $30,000 for fixed overhead.The predetermined overhead rate,including both fixed and variable components,is $2.50 per direct labour-hour.The standards call for two direct labour-hours per unit of output produced.Last year,the company produced 11,500 units of product and worked 22,000 direct labour-hours.Actual costs were $22,500 for variable overhead and $31,000 for fixed overhead.
Required:
a.What is the denominator level of activity?
b.What were the standard hours allowed for the output last year?
c.What was the variable overhead spending variance?
d.What was the variable overhead efficiency variance?
e.What was the fixed overhead budget variance?
f.What was the fixed overhead volume variance?
Correct Answer:
Verified
b.
c.Computation of variable over...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q29: The following materials standards have been established
Q125: The following overhead data are for a
Q125: The following overhead data are for a
Q140: In which of the following situations would
Q141: Determine labour efficiency variance:
Q143: Determine the labour rate variance
Q148: Nova Corporation produces a single product and
Q149: Determine the materials quantity variance:
Q181: The following labour standards have been
Q182: Dodge Company produces a single product.The company
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents