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

Name: 10. The following information relates to the company's overhead costs
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Description: 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 hoursStatic budget number of glasses 6,000 (each glass 0.3 hr

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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