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1. (TCO 10) Which of the following statements is true about overhead
cost variance analysis using activity-based costing?
2. (TCO 10) Sebastian Company, which manufactures electrical
switches, uses a standard cost system and carries all inventories at
standard. The standard manufacturing overhead costs per switch are
based on direct labor hours and are shown below:
Variable overhead (5 hours at $12 per direct manufacturing labor
hour)
$ 60
Fixed overhead (5 hours at $15 per direct manufacturing labor hour,
based on capacity of 200,000 direct manufacturing labor hours per
month)
75
Total overhead per switch