Question

The following data apply to questions 11 - 15. 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 @ $12 per direct manufacturing labor hour) $60 Fixed overhead (5 hours @ $15* per direct manufacturing labor hour) 75 Total overhead per switch *Based on capacity of 200,000 direct manufacturing labor hours per month $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. 11. The variable overhead spending variance for December was oso $50,000 U. $350,000 U. $10,000 F. $60,000 F. none of the above 12. The variable manufacturing overhead efficiency variance for December was Sodo $50,000 U. $350,000 U. $10,000 F. $60,000 F. none of the above ACCT1112_201451 Revision 13. The fixed manufacturing overhead spending variance for December was فرن $450,000 F $400,000 F. $50,000 U. $775,000 F. none of the above ی زن نه 14. The fixed overhead production volume variance for December was نه نه نه نه $450,000 F. $400,000 F. $50,000 U. $775,000 F. none of the above 15. What amount should be credited to the Allocated Manufacturing Overhead Control account for the month of December? oso $6,210,000 $5,800,000 $5,760,000 $5,700,000 none of the above

Can you show me how to get each answer?

Answer 1

11. Variable Overhead spending variance = Actual variable overhead - Budgeted Variable overhead
= $2750000 - (40000 x 5 x $12) = $350000 (U)

Answer is b. $350000 (U)

12. Variable overhead efficiency variance = (Actual hours - Standard hours) x Standard rate
= (225000 - 230000) x $12 = $60000 (F)

Standard hours = 46000 x 5 = 230000 hours

Answer is d. $60000 (F)

13. Fixed overhead spending variance = Actual fixed overhead - Budgeted fixed overhead
= $3050000 - (200000 x $15) = $50000 (U)

Answer is c. $50000 (U)

14. Fixed overhead volume variance = (Standard hours - Capacity hours) x Overhead rate
= (230000 - 200000) x $15 = $450000 (F)

Answer is a. $450000 (F)

15.
Overhead allocated = 230000 x $12 + 230000 x $15 = $6210000

Answer is a. $6210000