SAME- Each of the following are independent cases. Each company uses a standard cost system and applies overhead to production based on standard machine hours [MHs]. Item 1. Denominator hours in machine hours 2. Standard machine hours allowed 3. Actual machine hours worked 4. Budgeted variable overhead per MH 5. Budgeted fixed overhead [total] 6. Actual variable overhead cost 7. Actual fixed overhead cost 8. Variable overhead applied to production 9. Fixed overhead applied to production 10. VOH spending variance 11. VOH efficiency variance 12. FOH budget variance 13. FOH volume variance 14 Standard rate for VOH 15. Standard rate for FOH 16. Over (or under) applied MOH BC 315 Project #3 REQUIRED: Company A ? 32,000 30,000 ? ? $54,000 $209,400 ? $192,000 ? $3,500 F ? $18,000 U ? ? ? Company B 40,000 ? ? $2.80 ? $117,000 $302,100 $117,600 ? ? $8,400 U $2,100 U ? ? ? ? A. Prepare both the VOH and FOH diagrams for each company in good form. B. Prepare the MOH T-account for each company to identify the over (or under] applied overhead amount. [#16 above] C. Calculate/identify the unknown amounts listed above.

A company has traditionally allocated its overhead based on machine hours but collected this information to change to activity based costing: A. How much overhead would be assigned to each unit under the traditional allocation method? B. How much overhead would be assigned to each unit under activity-based costing?

The cost behavior patterns below are lettered A through H. The vertical axes of the graphs represent total dollars of expense, and the horizontal axes represent production in units, machine hours, or direct labor hours. In each case, the zero point is at the intersection of the two axes. Each graph may be used no more than once. Required: Select the graph that matches the lettered cost described here. a. Depreciation of equipmentthe amount of depreciation charged is computed based on the number of machine hours that the equipment was operated. b. Electricity billflat fixed charge, plus a variable cost after a certain number of kilowatt hours are used. c. City water billcomputed as follows: d. Depreciation of equipmentthe amount is computed by the straight-line method. e. Rent on a factory building donated by the citythe agreement calls for a fixed fee payment, unless 200,000 labor hours are worked, in which case no rent need be paid. f. Salaries of repair workersone repair worker is needed for every 1,000 machine hours or less (i.e., 0 to 1,000 hours requires one repair worker, 1,001 to 2,000 hours requires two repair workers, etc.).

Activity-based costing systems: A. use a single predetermined overhead rate based on machine hours instead of on direct labor B. frequently increase the overhead allocation to at least one product while decreasing the overhead allocation to at least one other product C. limit the number of cost pools D. always result in an increase of at least one products selling price