Littleton Manufacturing Uses a Standard Cost System in Which Manufacturing

question 99

Essay

Littleton Manufacturing uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard machine-hours. At standard, each unit of product requires one machine-hour to complete. The standard variable overhead is $1.80 per machine-hour and $432,000 per year. The denominator level of activity is 120,000 machine-hours, or 120,000 units. Actual data for the year were as follows: Required:
a. What are the predetermined variable and fixed manufacturing overhead rates?
b. Compute the variable overhead rate and efficiency variances.
c. Compute the fixed manufacturing overhead budget and volume variances.

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Definitions:

Subliminally Flashed

Pertains to stimuli presented below the threshold of conscious perception, often used in psychological experiments to explore the unconscious mind.

Memory Distortion

the alteration or incorrect recall of memories, often influenced by subsequent information, experiences, or the passage of time.

False Memories

This involves the recall of events that did not actually happen, often influenced by suggestion or the merging of actual memories with misinformation.

Hypnotic Suggestion

A technique used in hypnotherapy where a therapist suggests certain perceptions, feelings, thoughts, or behaviors to occur either during hypnosis or afterwards.