(Appendix 11A)Littleton Manufacturing Uses a Standard Cost System in Which

question 44

Essay

(Appendix 11A)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.

---

Definitions:

Situational Attribution

Refers to the process of attributing a person's behavior to external factors, such as the situation or environment they are in.

Cognitive Dissonance

The uneasy feeling that arises in someone when they possess multiple conflicting beliefs, ideas, or values simultaneously.

Foot-In-The-Door

A psychological technique that involves getting a person to agree to a large request by first setting them up by agreeing to a modest request.

Fundamental Attribution Error

The tendency to overestimate personality or dispositional factors and underestimate situational influences when explaining the behavior of others.