Which of the following statements regarding the manufacturing overhead budget is incorrect

A) Both fixed and variable manufacturing overhead costs are budgeted.

B) The manufacturing overhead budget calculates the budgeted overhead costs for the year and also the predetermined overhead allocation rate for the year.

C) The cost accountant and the production manager work together to project variable and fixed manufacturing costs.

D) Depreciation on manufacturing equipment is not included because the production manager has no control over that cost allocation.

Rafner Manufacturing identified the following budgeted data in its two production departments.

What is the company's Assembly department overhead rate using direct labor hours?

The T-account showing the manufacturing overhead activity for Edith Corp. for 2016 is as follows:

$$\begin{array}{ c } \hspace{40pt}\textbf{Manufacturing Overhead}\\ \end{array}\\$$

$$\begin{array} {r|l}\hline 205,000&209,000\\ \end{array}$$

Requirements

1. What is the actual manufacturing overhead?
2. What is the allocated manufacturing overhead?
3. Is manufacturing overhead underallocated or overallocated? By how much?

The accounting records of Georgia Company revealed the following costs: direct materials used, $250,000; direct labor,$425,000; manufacturing overhead, $375,000; and selling and administrative expenses,$220,000. Georgia's product costs total:

A. $1,050,000.

B.$830,000.

C. $895,000.

D.$1,270,000.

How is the predetermined overhead allocation rate used to allocate overhead?

Home Run Corporation produces three products for baseball enthusiasts: bats, gloves, and balls. Information relating to each product line is as follows:

Home Run pays its direct labor workers an average of $\$ 8$ per hour. At full capacity, 60,000 direct labor hours are available per year. The marketing department has just released the following sales estimates for the upcoming year: bats ( 60,000 units), gloves ( 20,000 units), and balls ( 100,000 units). Based on these figures, demand for the current year is expected to exceed the company's direct labor capacity.

b. The company's marketing manager believes that the production of the least profitable product is needed to "support" the demand for the most profitable products. How may this influence management's decision regarding the company's production schedule?

(d) How many items should the company produce to maximize profit? (Give your answer to the nearest integer.) What is the profit at that production level?

Gulf Breeze Corporation produces three products for water skiing enthusiasts: life vests, tow ropes, and water skis. Information relating to each product line is as follows:

Gulf Breeze pays its direct labor workers an average of $\$ 10$ per hour. At full capacity, 65,000 direct labor hours are available per year. The marketing department has just released the following sales estimates for the upcoming year: life vests ( 25,000 units), tow ropes ( 15,000 units), and water skis (5,000 units). Based on these figures, demand for the current year is expected to exceed the company's direct labor capacity.

a. What products should Gulf Breeze produce to maximize its operating income?

The journal entry to record applying overhead during the production process is:

A. Debit Manufacturing Overhead, Credit Work In Process

B. Debit Finished Goods, Credit Manufacturing Overhead

C. Debit Manufacturing Overhead, Credit Finished Goods

D. Debit Work In Process, Credit Manufacturing Overhead

Manufacturing costs include :

a. direct materials and direct labor only
b. direct materials and manufacturing overhead only.
c. direct labor and manufacturing overhead only
d. direct materials, direct labor, and manufacturing overhead

On May 1, 2016, Ryde Inc. had common stock of $345,000, additional paid-in capital of$1,298,000, and retained earnings of $3,013,000. Ryde did not purchase or sell any common stock during the year. The company reported net income of$556,000 and declared dividends in the amount of $78,000 during the year ended April 30, 2017.

Required Prepare a financial statement that explains the differences between the beginning and ending balances for the accounts in the Stockholders’ Equity category of the balance sheet.

FrontGrade Systems allocates manufacturing overhead based on machine hours. Each connector should require 11 machine hours. According to the static budget, FrontGrade expected to incur the following:

1,100 machine hours per month (100 connectors X 11 machine hours per connector) $5,500 in variable manufacturing overhead costs$8,250 in fixed manufacturing overhead costs

During August, FrontGrade actually used 1,000 machine hours to make 110 connectors and spent $5,600 in variable manufacturing costs and$8,300 in fixed manufacturing overhead costs.

Calculate the variable overhead cost variance for FrontGrade. a. $450 F c.$1 ,050 F b. $600 U d.$1,650 F

Refer to the information presented in the preceding exercise. What is MajorNet's direct labor efficiency variance for August?

• a. $919.80 F
• b.$1,071.00 F
• c. $1,121.40 F
• d.$3,364.20 F

MajorNet Systems's managers could set direct labor standards based on a. time-and-motion studies. c. benchmarking. b. continuous improvement. d. All of the above.