Acc315 Cost Accounting: 8-23 The Singapore division of a Canadian telecommunications company

Acc315 Cost Accounting 
8-23 Straightforward coverage of manufacturing overhead, standard-costing system. 
The Singapore division of a Canadian telecommunications company uses standard costing for its machine-paced production of telephone equipment. 
Data regarding production during June are as follows: 
Variable manufacturing overhead costs incurred $155,100 
Variable manufacturing overhead cost rate $12 per standard machine-hour 
Fixed manufacturing overhead costs incurred $401,000 
Fixed manufacturing overhead costs budgeted $390,000 
Denominator level in machine-hours 13,000 
Standard machine-hours allowed per unit of output 0.30 
Units of output 41,000 
Actual machine-hours used 13,300 
Ending work-in process inventory - 

Required: 
1. Prepare an analysis of all manufacturing overhead variances. Use the 4-variance analysis framework illustrated in Exhibit 8-4 (p. 276). 
2. Prepare journal entries for manufacturing overhead costs and their variances. 
3. Describe how individual variable manufacturing overhead items are controlled from day to day. 
4. Discuss possible causes of the variable manufacturing overhead variances.
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