White Corporation manufactures football jerseys and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information pertains to the company’s manufacturing overhead data.
Budgeted output units 20,000 units
Budgeted machine-hours 30,000 hours
Budgeted variable manufacturing overhead costs for 20,000 units $360,000
Actual output units produced 18,000 units
Actual machine-hours used 28,000 hours
Actual variable manufacturing overhead costs $342,000
- What is the budgeted variable overhead cost rate per output unit?
- What is the flexible-budget amount for variable manufacturing overhead?
- What is the flexible-budget variance for variable manufacturing overhead?
4Variable-manufacturing overhead costs were __________ for actual output.
- higher than expected
- the same as expected
- lower than expected
- unable to be determined
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5. Overhead costs have been increasing due to all of the following EXCEPT:
- What is the budgeted variable overhead cost rate per output unit?
$360,000/20,000 = $18.00
- What is the flexible-budget amount for variable manufacturing overhead?
18,000 x ($360,000/20,000)] = $324,000
- What is the flexible-budget variance for variable manufacturing overhead?
$342,000 – [18,000 x ($360,000/20,000)] = $18,000 U
- Variable-manufacturing overhead costs were __________ for actual output.
- higher than expected
- the same as expected
- lower than expected
- unable to be determined
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
- Overhead costs have been increasing due to all of the following EXCEPT:
- increased automation
- more complexity in distribution processes
- tracing more costs as direct costs with the help of technology
- product proliferation
