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ACC 321 BBAs#5 - Problem (chapter 8) The following information was taken from the annual...

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ACC 321 BBAs#5 - Problem (chapter 8) The following information was taken from the annual manufacturing overhead cost Budget of the Ferguson Company: Variable manufacturing overhead costs $33,000 Fixed manufacturing overhead costs $20,625 Normal production level in hours 16,500 Normal production level in units 4,125 During the year, 4,000 units were produced, 16,100 hours were worked, and the actual man- ufacturing overhead was $54,000. Actual fixed manufacturing overhead costs equaled bud- geted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. Required: a) Calculate the variable, fixed & total predetermined mfg. overhead rates used for the year. b) Determine the applied mfg. overhead costs for variable & fixed mfg. overhead c) Was mfg. overhead cost for the year over or under applied (hint: use T-account to get answer? d) Analyze and calculate spending, efficiency, & production volume variances as they apply to both variable and fixed overhead costs for the year. e) Discuss the results and who is responsible for them

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