Reference no: EM131876009

Problem - Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires two standard hours of direct labor for completion. The denominator activity for the year was based on budgeted production of 200,000 units. Total overhead was budgeted at $900,000 for the year, and the fixed manufacturing overhead rate was $1.50 per direct labor-hour. The actual data pertaining to the manufacturing overhead for the year are presented below:

Actual Production: 198,000 Units

Actual direct labor-hours : 440,000 direct labor-hours

Actual variable manufacturing overhead: $352,000

Actual fixed manufacturing overhead: $575,000

1. The standard hours allowed for actual production for the year total:

A. 247,500

B. 396,000

C. 400,000

D. 495,000

2. Franklin's variable overhead efficiency variance for the year is

A. $33,000 unfavorable

B. $35,200 favorable

C. $35,200 unfavorable

D. $33,000 favorable

3. Franklin's variable overhead rate variance for the year is:

A. $20,000 unfavorable

B. $22,000 favorable

C. $22,000 unfavorable

D. $20,000 favorable

4. The fixed manufacturing overhead applied to Franklin's production for the year is:

A. $484,200

B. $575,000

C. $594,000

D. $600,000

5. Franklin's Production volume variance for the year is:

A. $6,000 unfavorable

B. $19,000 favorable

C. $25,000 favorable

D. $55,000 unfavorable