Birkland Incorporated Makes a Single Product--A Critical Part Used in Commercial

question 143

Essay

Birkland Incorporated makes a single product--a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
Required:
a. Compute the variable component of the company's predetermined overhead rate.
b. Compute the fixed component of the company's predetermined overhead rate.
c. Compute the company's predetermined overhead rate.
d. Determine the variable overhead rate variance for the year.
e. Determine the variable overhead efficiency variance for the year.
f. Determine the fixed overhead budget variance for the year.
g. Determine the fixed overhead volume variance for the year.

---

Definitions:

Informed Consent

Procedure (often legally required prior to treatment administration) in which a patient receives a full and understandable explanation of the treatment being offered and makes a decision about whether to accept or refuse the treatment.

Humane Environment

A setting or condition that shows compassion and respect for the well-being of all beings involved.

Wyatt v. Stickney

A landmark legal case that established the right to adequate treatment for people in psychiatric hospitals in the United States.

Major Depression

a severe mood disorder characterized by persistent feelings of sadness, loss of interest in activities, and a range of physical and cognitive symptoms, affecting daily functioning.