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1

The Parco Company applies manufacturing overhead costs to products on the basis of direct labor-hours. The standard cost card shows that 12 direct labor-hours are required per unit of product. For August, the company budgeted to work 360,000 direct labor-hours and to incur the following total manufacturing overhead costs:

Total variable overhead costs $396,000
Total fixed overhead costs $475,200

During August, the company completed 28,000 units of product, worked 344,000 direct labor-hours, and incurred the following total manufacturing overhead costs:

Total variable overhead costs $395,600
Total fixed overhead costs $461,200

The denominator activity in the predetermined overhead rate is 360,000 direct labor-hours. The variable overhead spending variance for August is:

A)$17,200 F.
B)$17,200 U.
C)$26,000 F.
D)$26,000 U.
2

The Parco Company applies manufacturing overhead costs to products on the basis of direct labor-hours. The standard cost card shows that 12 direct labor-hours are required per unit of product. For August, the company budgeted to work 360,000 direct labor-hours and to incur the following total manufacturing overhead costs:

Total variable overhead costs $396,000
Total fixed overhead costs $475,200

During August, the company completed 28,000 units of product, worked 344,000 direct labor-hours, and incurred the following total manufacturing overhead costs:

Total variable overhead costs $395,600
Total fixed overhead costs $461,200

The denominator activity in the predetermined overhead rate is 360,000 direct labor-hours.The variable overhead efficiency variance for August is:

A)$0.
B)$7,200 F.
C)$8,800 F.
D)$8,800 U.
3

The Parco Company applies manufacturing overhead costs to products on the basis of direct labor-hours. The standard cost card shows that 12 direct labor-hours are required per unit of product. For August, the company budgeted to work 360,000 direct labor-hours and to incur the following total manufacturing overhead costs:

Total variable overhead costs $396,000
Total fixed overhead costs $475,200

During August, the company completed 28,000 units of product, worked 344,000 direct labor-hours, and incurred the following total manufacturing overhead costs:

Total variable overhead costs $395,600
Total fixed overhead costs $461,200

The denominator activity in the predetermined overhead rate is 360,000 direct labor-hours. The fixed overhead budget variance for August is:

A)$12,800 F.
B)$12,800 U.
C)$14,000 F.
D)$14,000 U.
4

The Parco Company applies manufacturing overhead costs to products on the basis of direct labor-hours. The standard cost card shows that 12 direct labor-hours are required per unit of product. For August, the company budgeted to work 360,000 direct labor-hours and to incur the following total manufacturing overhead costs:

Total variable overhead costs $396,000
Total fixed overhead costs $475,200

During August, the company completed 28,000 units of product, worked 344,000 direct labor-hours, and incurred the following total manufacturing overhead costs:

Total variable overhead costs $395,600
Total fixed overhead costs $461,200

The denominator activity in the predetermined overhead rate is 360,000 direct labor-hours. The fixed overhead volume variance for August is:

A)$17,200 U.
B)$19,920 F.
C)$19,920U.
D)$31,680 U.





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