Pickell Incorporated Makes a Single Product--A Cooling Coil Used in Commercial

question 176

Essay

Pickell Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
Required:
a. Determine the variable overhead rate variance for the year.
b. Determine the variable overhead efficiency variance for the year.
c. Determine the fixed overhead budget variance for the year.
d. Determine the fixed overhead volume variance for the year.
e. Determine whether overhead was underapplied or overapplied for the year and by how much.

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Definitions:

Codes of Ethics

Guidelines designed to set out acceptable behaviors for members of a particular group, profession, or organization.

Professional Accountability

The responsibility of professionals to act ethically, to adhere to standards, and to be answerable for their actions, decisions, and the outcomes of their work.

Legal Aspects

The components or issues of a situation that pertain to the law, including regulations, rights, and legal responsibilities.

Confidentiality

The ethical principle or legal right that mandates keeping certain information shared by a client or patient in a professional setting private.