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For the Win (FTW) Corporation uses a standard costing system in the creation of awards and trophies. The Manufacturing overhead costs are applied to products based on machine time.
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Question 1. Unfortunately, due to accounting glitches in FTW's software, several numbers and labels have been omitted from the analysis of fixed overhead below. Supply the missing numbers and labels to help FTW out:
Actual Fixed Overhead Cost Flexible Budget Overhead Cost Fixed Overhead Cost Applied to Work in Process (a) (b) 302,200 MH x $1.2 = (c) Budget variance, $3,200 U (d) Total variance, $400 F (e) Question 2. Next, assume that 6 minutes of machine time is standard per unit of production. How many units were produced in the situation above?
Question 3. Once again, assume that 6 minutes of machine time is standard per unit of production. How many units of production were assumed when the predetermined application rate for fixed overhead was established?
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