Pierce Corporation Uses a Standard Cost System in Which It

question 13

Essay

Pierce Corporation uses a standard cost system in which it applies manufacturing overhead to its product on the basis of standard direct labor-hours (DLHs).Below is the standard cost card for the product: Last year,the company produced 6,000 units of product using 17,000 direct labor-hours.The actual total fixed manufacturing overhead cost for the year was $140,000 and the volume variance was $12,000,favorable.
Required:
a.Determine the budgeted amount of total fixed manufacturing overhead cost.
b.Determine the denominator activity figure that the company used in computing predetermined overhead rates.

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Definitions:

Integer Variable

An integer variable is a type of variable used in programming to store whole numbers.

Valid

Often refers to data or inputs that conform to specified format, rules, or ranges defined within a program or system.

Declarations

Statements in programming that specify the type and sometimes the initial value of variables, functions, and other entities.

Function Declaration

The part of a program that specifies the name, return type, and parameters of a function without defining what it does.