Silverstone: Fixed Overhead Standard Cost Variances
Not what you're looking for?
Silverstone's production budget for March called for making 39,700 units of single product.
The firm's production standards allow one-quarter of a machine hour per unit produced.
The fixed overhead budget for March was $35,333. Silverstone uses an absorption
costing system.
Units produced 36,673
Fixed overhead costs incurred $37,400
a. Calculate the predetermined fixed overhead application rate that would be used in March.
(round your answer to 2 decimal places.)
b. Calculate the number of machine hours that would be allowed for actual March production.
(Round your answers to a whole number.)
c. Calculate the fixed overhead applied to work in process during March.
(Round your intermediate calculations to 2 decimal places and round your answers to a whole number.)
d. Calculate the over- or under-applied fixed overhead for March.
(Round your intermediate calculations to 2 decimal places and round your answers to a whole number.)
e. Calculate the fixed overhead budget and volume variances for March.
(round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by
selecting "F" for favorable, "U" for unfavorable.)
Purchase this Solution
Solution Summary
Instructional notes and a diagram give you the structure to solve this problem.
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Motivation
This tests some key elements of major motivation theories.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.