The following information was taken from the annual manufacturing overhead cost budget of Cinnamon Manufacturing: $\begin{array}{lr}
\text { Variable manufacturing overhead costs } & \$ 186,000 \
\text { Fixed manufacturing overhead costs } & \$ 124,000 \
\text { Normal production level in direct labor hours } & 62,000 \
\text { Normal production level in units } & 31,000
\end{array}$ During the year 30000 units were produced 64000 hours were worked and the actual manufacturing overhead costs were $322000. The actual fixed manufacturing overhead costs did not deviate from the budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours.
Instructions
(a) Compute the total fixed and variable predetermined manufacturing overhead rates.
(b) Compute the total controllable and volume overhead variances.

Question

Quizplus · Accepted Answer

The Answer of The following information was taken from the annual manufacturing overhead cost budget of Cinnamon Manufacturing: $\begin{array}{lr}
\text { Variable manufacturing overhead costs } & \$ 186,000 \
\text { Fixed manufacturing overhead costs } & \$ 124,000 \
\text { Normal production level in direct labor hours } & 62,000 \
\text { Normal production level in units } & 31,000
\end{array}$ During the year 30000 units were produced 64000 hours were worked and the actual manufacturing overhead costs were $322000. The actual fixed manufacturing overhead costs did not deviate from the budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours.
Instructions
(a) Compute the total fixed and variable predetermined manufacturing overhead rates.
(b) Compute the total controllable and volume overhead variances.

The Following Information Was Taken from the Annual Manufacturing Overhead