Sucher Company Uses a Standard Cost System in Which Manufacturing

question 13

Essay

Sucher Company uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of standard machine-hours. The company's standards are based on variable manufacturing overhead of $3 per machine-hour and fixed manufacturing overhead of $300,000 per year. The denominator level of activity is 30,000 machine-hours. Standards call for 2.5 machine-hours per unit of output. Actual activity and manufacturing overhead costs for the year are given below:
Required:
a. What are the standard hours allowed for the output?
b. What was the variable overhead rate variance?
c. What was the variable overhead efficiency variance?
d. What was the fixed manufacturing overhead budget variance?
e. What was the fixed manufacturing overhead volume variance?

---

Definitions:

Vertical Loading

The method of adding new responsibilities and tasks to a job at the same level of the organization, aimed at enhancing the job's complexity and the employee's autonomy.

Job Design Strategies

The methods and approaches used to structure tasks, responsibilities, and work environments to enhance employee performance and satisfaction.

Assembly-Line Job

Work that involves a series of workers and machines in a factory, where each worker handles a different step in the production process.

Job Enrichment

Enhancing a job's design to provide employees with more satisfaction and growth opportunities through increased responsibility and variety.