Buis Corporation, which makes landing gears, has provided the following data for a recent month: Budgeted production 1,200 gears Standard machine hours per gear Budgeted supplies cost 5.9 machine-hours $6.50 per machine-hour Actual production Actual machine hours Actual supplies cost (total) 1,300 gears 7,950 machine-hours $ 49,742 Determine the rate and efficiency variances for the variable overhead item supplies and indicate whether those variables are favorable or unfavorable. Yogi Company expects to produce 2,080 units in January which will require 10,400 hours of direct labor and 2,210 units in February which will require 11,050 hours of direct labor. Yogi budgets $9 per unit for variable manufacturing overhead; $1,900 per month for depreciation; and $75,320 per month for other fixed manufacturing overhead costs. Prepare Yogi's manufacturing overhead budget for January and February, including the predetermined overhead allocation rate using direct labor hours as the allocation base.

At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.

The controller for Muir Companys Salem plant is analyzing overhead in order to determine appropriate drivers for use in flexible budgeting. She decided to concentrate on the past 12 months since that time period was one in which there was little important change in technology, product lines, and so on. Data on overhead costs, number of machine hours, number of setups, and number of purchase orders are in the following table. Required: 1. Calculate an overhead rate based on machine hours using the total overhead cost and total machine hours. (Round the overhead rate to the nearest cent and predicted overhead to the nearest dollar.) Use this rate to predict overhead for each of the 12 months. 2. Run a regression equation using only machine hours as the independent variable. Prepare a flexible budget for overhead for the 12 months using the results of this regression equation. (Round the intercept and x-coefficient to the nearest cent and predicted overhead to the nearest dollar.) Is this flexible budget better than the budget in Requirement 1? Why or why not?

Fitzgerald Company manufactures sewing machines, and they produced 2,500 this past month. The standard variable manufacturing overhead (M0H) rate used by the company is $6.75 per machine hour. Each sewing machine requires 13.5 machine hours. Actual machine hours used last month were 33,500, and the actual variable MOH rate last month was $7.00. Calculate the variable overhead rate variance and the variable overhead efficiency variance.