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