If variable manufacturing overhead is applied based on direct labor-hours, it is impossible to have a favorable labor rate variance and unfavorable variable overhead rate variance for the same period.
Answer the following statement true (T) or false (F)
False
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When the real interest rate is high, there are greater incentives to borrow and fewer incentives to lend
Indicate whether the statement is true or false
Janicki Corporation has two manufacturing departments-Machining and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: MachiningCustomizingTotalEstimated total machine-hours (MHs) 1,000 9,000 10,000Estimated total fixed manufacturing overhead cost$4,800$23,400$28,200Estimated variable manufacturing overhead cost per MH$1.10$2.50 During the most recent month, the company started and completed two jobs-Job A and Job J. There were no beginning inventories. Data concerning those two jobs follow: Job AJob JDirect materials$12,000$7,700Direct labor cost$20,700$6,400Machining machine-hours 700 300Customizing machine-hours 3,600 5,400Assume that the company uses a plantwide predetermined manufacturing overhead rate
based on machine-hours and uses a markup of 50% on manufacturing cost to establish selling prices. The calculated selling price for Job A is closest to: (Round your intermediate calculations to 2 decimal places.) A. $27,487 B. $54,974 C. $82,461 D. $90,707