10. The following information relates to the company's overhead costs: • Static budget variable overhead $ 9,000 • Static budget fixed overhead $ 4.500 • Static budget direct labor hours 1.800 hours • Static budget number of glasses 6,000 (each glass 0.3 hr) Johnson allocates manufacturing overhead to production based on standard direct labor hours. Last month, Johnson reported the following actual results: actual variable overhead, $10,200; actual fixed overhead, $2,830. The actual results to produce 6,900 glasses, were 0.2 hour per glass (total 1,380 hours). Hint: budgeted amount per units are applied to flexible budget and static budget; fixed overhead is the same under the flexible budget and static budget 1. Compute the standard variable overhead rate and the standard fixed overhead rate. 2. compute the variable and fixed overhead variances
10. The following information relates to the company's overhead costs: • Static budget variable overhead $ 9,000 • Static budget fixed overhead $ 4.500 • Static budget direct labor hours 1.800 hours • Static budget number of glasses 6,000 (each glass 0.3 hr) Johnson allocates manufacturing overhead to production based on standard direct labor hours. Last month, Johnson reported the following actual results: actual variable overhead, $10,200; actual fixed overhead, $2,830. The actual results to produce 6,900 glasses, were 0.2 hour per glass (total 1,380 hours). Hint: budgeted amount per units are applied to flexible budget and static budget; fixed overhead is the same under the flexible budget and static budget 1. Compute the standard variable overhead rate and the standard fixed overhead rate. 2. compute the variable and fixed overhead variances
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 2E: Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![10. The following information relates to the company's overhead costs:
•
Static budget variable overhead $ 9,000
• Static budget fixed overhead S 4,500
•
Static budget direct labor hours 1.800 hours
Static budget number of glasses 6,000 (each glass 0.3 hr)
Johnson allocates manufacturing overhead to production based on standard direct labor hours. Last
month, Johnson reported the following actual results: actual variable overhead, $10,200; actual fixed
overhead, $2,830. The actual results to produce 6,900 glasses, were 0.2 hour per glass (total 1,380
hours).
Hint: budgeted amount per units are applied to flexible budget and static budget; fixed overhead is the
same under the flexible budget and static budget
1. Compute the standard variable overhead rate and the standard fixed overhead rate.
2. compute the variable and fixed overhead variances](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F548f144b-9127-46bb-ba4e-7cbbebe00421%2F48e4ce9e-3b54-4097-a066-606098cb623d%2Ffmm2ijw_processed.png&w=3840&q=75)
Transcribed Image Text:10. The following information relates to the company's overhead costs:
•
Static budget variable overhead $ 9,000
• Static budget fixed overhead S 4,500
•
Static budget direct labor hours 1.800 hours
Static budget number of glasses 6,000 (each glass 0.3 hr)
Johnson allocates manufacturing overhead to production based on standard direct labor hours. Last
month, Johnson reported the following actual results: actual variable overhead, $10,200; actual fixed
overhead, $2,830. The actual results to produce 6,900 glasses, were 0.2 hour per glass (total 1,380
hours).
Hint: budgeted amount per units are applied to flexible budget and static budget; fixed overhead is the
same under the flexible budget and static budget
1. Compute the standard variable overhead rate and the standard fixed overhead rate.
2. compute the variable and fixed overhead variances
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