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(TCO 10) Which of the following pertains primarily to the planning of fixed overhead costs? (Points : 6)

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    1. (TCO 10) Which of the following pertains primarily to the planning of fixed overhead costs? (Points : 6)
  • (TCO 10) Sebastian Company, which manufactures electrical switches, uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below:
  • Variable overhead (5 hours at $12 per direct manufacturing labor hour)  
  • $  60
  • Fixed overhead (5 hours at $15 per direct manufacturing labor hour,
    based on capacity of 200,000 direct manufacturing labor hours per month)  
  •     75
  • Total overhead per switch
  • $ 135

  • The following information is available for the month of December:
    • 46,000 switches were produced, although 40,000 switches were scheduled to be produced.
    • 225,000 direct manufacturing labor hours were worked at a total cost of $5,625,000.
    • Variable manufacturing overhead costs were $2,750,000.
    • Fixed manufacturing overhead costs were $3,050,000.
    The total variable manufacturing overhead variance was (Points : 6)
  • (TCO 10) Sebastian Company, which manufactures electrical switches, uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below:
  • Variable overhead (5 hours at $12 per direct manufacturing labor hour)  
  • $  60
  • Fixed overhead (5 hours at $15 per direct manufacturing labor hour,
    based on capacity of 200,000 direct manufacturing labor hours per month)  
  •     75
  • Total overhead per switch
  • $ 135

  • The following information is available for the month of December:
    • 46,000 switches were produced, although 40,000 switches were scheduled to be produced.
    • 225,000 direct manufacturing labor hours were worked at a total cost of $5,625,000.
    • Variable manufacturing overhead costs were $2,750,000.
    • Fixed manufacturing overhead costs were $3,050,000.
    The fixed overhead production volume variance for December was (Points : 6)
  • TCO 10) Sebastian Company, which manufactures electrical switches, uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below:
  • Variable overhead (5 hours at $12 per direct manufacturing labor hour)  
  • $  60
  • Fixed overhead (5 hours at $15 per direct manufacturing labor hour,
    based on capacity of 200,000 direct manufacturing labor hours per month)  
  •     75
  • Total overhead per switch
  • $ 135

  • The following information is available for the month of December:
    • 46,000 switches were produced, although 40,000 switches were scheduled to be produced.
    • 225,000 direct manufacturing labor hours were worked at a total cost of $5,625,000.
    • Variable manufacturing overhead costs were $2,750,000.
    • Fixed manufacturing overhead costs were $3,050,000.
    Under the 3-variance method, the spending variance for December was (Points : 6)
  1. (TCO 10) Budgeted overhead costs rates can be expressed as an amount per unit of output or per unit of input. (Points : 6)

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