Chapter 16, Problem 17DQ

What is the variable overhead rate variance for the month

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Norwin Co. sells its product for $40 per unit. The variable cost per unit is $24, and fixed costs total $160,000 per year. Last year, the company sold 15,000 units. This year, the company is expecting to increase sales volume to 17,000 units. What is the expected change in operating income due to the increase in sales volume?

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General accounting

For Caesar Manufacturing, the predetermined overhead rate is 135% of direct labor cost. During the month, Caesar incurred $142,000 in factory labor costs, of which $105,300 is direct labor and $36,700 is indirect labor. The actual overhead incurred was $136,400. Compute the amount of manufacturing overhead applied during the month. Determine the amount of under- or overapplied manufacturing overhead.

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General accounting