Tracton Corporation Uses a Standard Costing System in Which Manufacturing

question 118

Essay

Tracton Corporation uses a standard costing system in which manufacturing overhead costs are applied to products on the basis of machine time.
Required:
a)Several numbers and labels have been omitted from the analysis of fixed overhead below.Supply the missing numbers and labels.
$\begin{array}{|l|l|l} \hline & \text { Flexible Budget Fixed } & \text { Fixed Overhead Cost } \\\text { Answer: } & \text { Overhead Cost } & \text { Applied to Work in } \\\text { Actual Fixed Overhead } & & \text { Process 302,100 MH x } \\\text { Cost } & & \$ 1.08\\\hline ?&?&?\\\hline\underline{\quad\quad}&\underline{\quad\quad}&\underline{\quad\quad}\\\hline& \text { Budget variance,}&?\\\hline& \text { \( \$ 1,880 \mathrm{U} \)}&?\\\hline& \text { Total variance, \( \$ 388 \mathrm{~F} \)}\\ \hline\end{array}$
b)Suppose that 6 minutes of machine time is standard per unit of production.How many units were actually produced in the situation above?
c)Again suppose that 6 minutes of machine time is standard per unit of production.How many units of production were assumed when the predetermined application rate for fixed overhead was established?

---

Definitions:

Cerebral Meninges

The three protective membranes that surround the brain and spinal cord.

Olfactory Nerves

The first pair of cranial nerves responsible for the sense of smell, transmitting sensory information from the nasal cavity to the brain.

Optic Nerves

Nerves responsible for transmitting visual information from the retina to the brain.

Central Nervous System

The part of the nervous system that includes the brain and spinal cord.