Littleton Manufacturing Uses a Standard Cost System in Which Manufacturing

question 96

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.