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

question 114

Essay

Warrenfeltz 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 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.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean of the set.

Mean

The arithmetic average of a set of numbers, representing the central location within that dataset.

Standard Normal

Refers to a normal distribution with a mean of zero and a standard deviation of one, serving as a basis for comparing other normal distributions.

Standard Normal

A distribution that is standard and normal with its average at zero and its variability defined by a standard deviation of one.