The Following Standard Costs Were Developed for One of the Products

question 111

Essay

The following standard costs were developed for one of the products of the Miller Corporation: STANDARD COST CARD PER UNIT
$\begin{array}{lr}\text { Variable overhead: } 9 \text { hours } \times \$ 9 \text { per hour } & 81.00 \\\text { Fixed overhead: } 9 \text { hours } \times \$ 13 \text { per hour } & 117.00\end{array}$ The following information is available regarding the company's operations for the period: $\begin{array}{ll}\text { Units produced: } & 12,000 \\\text { Direct labour: } & 85,000 \text { hours costing } \$ 850,000 \\& \\\text { Manufacturing overhead incurred: } &\\\text { Variable } & \$ 786,000 \\\text { Fixed } & \$ 1,100,000\end{array}$ Budgeted fixed manufacturing overhead for the period is $1,000,000,and the standard fixed overhead rate is based on expected capacity of 100,000 direct labour hours.
Required: A. $\quad$ Calculate the variable manufacturing overhead spending variance.
B. $\quad$ Calculate the variable manufacturing overhead efficiency variance.
C. $\quad$ Calculate the fixed manufacturing overhead spending variance.
D. $\quad$ Calculate the fixed manufacturing overhead volume variance.

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Definitions:

Detritus Feeder

An organism that feeds on dead organic material, especially plant detritus, contributing to decomposition and nutrient cycling.

Decomposer

Organisms, usually bacteria and fungi, that break down dead or decaying organic matter, recycling nutrients in the ecosystem.

Food Chain

A series of organisms each dependent on the next as a source of food, representing the flow of energy and nutrients in an ecosystem.

Low-Quality Heat

Refers to thermal energy that is at a temperature unsuitable or too low to be used for work or energy production efficiently.