1. Shine Bakery produces specialty coffee machines. Shine uses a standard cost system.
Data regarding production during August are as follows:
|
|
|
Variable Manufacturing overhead costs incurred
|
$155,100
|
|
Variable Manufacturing overhead cost rate
|
$12 per standard machine hour
|
|
Fixed manufacturing overhead costs incurred
|
$401,000
|
|
Fixed manufacturing overhead budgeted
|
$390,000
|
|
Denominator level in machine-hours (Budget)
|
13,000
|
|
Standard machine-hour allowed per unit of output
|
.3
|
|
Units of output
|
41,000
|
|
Actual machine-hours used
|
13,300
|
|
Ending Work-in-process inventory
|
0
|
Using the 4-variance method calculate all (variable and fixed) manufacturing overhead variances. Indicate F for favorable, and U for unfavorable.