Kreuzer Corporation Is Using a Predetermined Overhead Rate of $22

question 340

Multiple Choice

Kreuzer Corporation is using a predetermined overhead rate of $22.30 per machine-hour that was based on estimated total fixed manufacturing overhead of $446,000 and 20,000 machine-hours for the period. The company incurred actual total fixed manufacturing overhead of $409,000 and 18,200 total machine-hours during the period. The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to:

• A) $446,000
• B) $37,000
• C) $372,190
• D) $405,860

Recognize the importance of standards in setting manufacturing costs.

Comprehend the process of adjusting journal entries based on significant variances.

Understand the conceptual framework behind the standard costing system and its application in a manufacturing environment.

Understand the calculation of material and labor variances including quantity, price, and total cost variances.