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29. The flexible budget of Spider Company is summarized below: Variable overhead Fixed overhead Total factory overhead Percent of normal operating capacity 90% 100% P 23,000 50,000 P 25,000 50,000 P 73,000 P 75,000 C. 4.00 d. 5.00 80% P 21,000 50,000 P 71,000 100,000 of units of product are produced when the company operates at its normal capacity. The standard labor time per unit is 15 minutes. Actual production for the year was 90,000 units of product in 44,000 hours. What is the standard variable factory overhead rate per hour? a. 1.00 b. 1.25 110% P 27,000 50,000 P 77,000 NOTE: Based on 100% operating capacity the variable rate is: P 25,000 ÷ 25,000 hours = P1 Flexible budget formula: FOH= 50,000+ 1 X, where 'X' is based on the number of hours. 30. Using data in No. 29, what is the budgetary factory overhead adjusted to standard hours? a. 22,500 b. 50,000 c. 72,500 d. 75,000 31. Information on Caterpillar Company's overhead costs is as follows:

29. The flexible budget of Spider Company is summarized below: Variable overhead Fixed overhead Total factory overhead Percent of normal operating capacity 90% 100% P 23,000 50,000 P 25,000 50,000 P 73,000 P 75,000 C. 4.00 d. 5.00 80% P 21,000 50,000 P 71,000 100,000 of units of product are produced when the company operates at its normal capacity. The standard labor time per unit is 15 minutes. Actual production for the year was 90,000 units of product in 44,000 hours. What is the standard variable factory overhead rate per hour? a. 1.00 b. 1.25 110% P 27,000 50,000 P 77,000 NOTE: Based on 100% operating capacity the variable rate is: P 25,000 ÷ 25,000 hours = P1 Flexible budget formula: FOH= 50,000+ 1 X, where 'X' is based on the number of hours. 30. Using data in No. 29, what is the budgetary factory overhead adjusted to standard hours? a. 22,500 b. 50,000 c. 72,500 d. 75,000 31. Information on Caterpillar Company's overhead costs is as follows:

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 28E: Refer to Exercise 8.27. At the end of the year, Meliore, Inc., actually produced 310,000 units of...
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30.C

34.D

35.A

29. The flexible budget of Spider Company is summarized below: Variable overhead Fixed overhead Total factory overhead Percent of normal operating capacity 80% 90% 100% P 23,000 P 21,000 50,000 P 25,000 50,000 50,000 P 71,000 P 73,000 P 75,000 C. 4.00 d. 5.00 100,000 of units of product are produced when the company operates at its normal capacity. The standard labor time per unit is 15 minutes. Actual production for the year was 90,000 units of product in 44,000 hours. What is the standard variable factory overhead rate per hour? a. 1.00 b. 1.25 110% P 27,000 50,000 P 77,000 NOTE: Based on 100% operating capacity the variable rate is: P 25,000 ÷ 25,000 hours = P 1 Flexible budget formula: FOH = 50,000 + 1 X, where 'X' is based on the number of hours. 30. Using data in No. 29, what is the budgetary factory overhead adjusted to standard hours? a. 22,500 b. 50,000 c. 72,500 d. 75,000 31. Information on Caterpillar Company's overhead costs is as follows:
Transcribed Image Text:29. The flexible budget of Spider Company is summarized below: Variable overhead Fixed overhead Total factory overhead Percent of normal operating capacity 80% 90% 100% P 23,000 P 21,000 50,000 P 25,000 50,000 50,000 P 71,000 P 73,000 P 75,000 C. 4.00 d. 5.00 100,000 of units of product are produced when the company operates at its normal capacity. The standard labor time per unit is 15 minutes. Actual production for the year was 90,000 units of product in 44,000 hours. What is the standard variable factory overhead rate per hour? a. 1.00 b. 1.25 110% P 27,000 50,000 P 77,000 NOTE: Based on 100% operating capacity the variable rate is: P 25,000 ÷ 25,000 hours = P 1 Flexible budget formula: FOH = 50,000 + 1 X, where 'X' is based on the number of hours. 30. Using data in No. 29, what is the budgetary factory overhead adjusted to standard hours? a. 22,500 b. 50,000 c. 72,500 d. 75,000 31. Information on Caterpillar Company's overhead costs is as follows:
Items 34 and 35 are based on the following information Ant Company's budgeted fixed factory overhead cost is P 50,000 per month plus a variable factory overhead rate of P 4 per direct labor hour. The standard direct labor hours allowed for October production was 18,000. An analysis of the factory overhead indicates that in October, Ant had an unfavorable budget (controllable) variance of P 1,000 and an unfavorable volume variance of P 500. Ant uses a two-way analysis of overhead variance. 34. What is the actual factory overhead measured in October? a. P 121,000 b. P 122,000 C. P 122,500 d. P 123,000 35. What is the applied (standard) factory overhead in October? a. P 121,500 b. P 122,000 C. P 122,500 d. P 123,000 36. Under the three-variance method for analyzing factory overhead, budget or spending variance is computed by subtracting from actual factory overhead costs incurred the a. Budget allowance based on actual input b. Budget allowance based on actual output c. Budget allowance based on standard input Budget allowance based on standard output d.
Transcribed Image Text:Items 34 and 35 are based on the following information Ant Company's budgeted fixed factory overhead cost is P 50,000 per month plus a variable factory overhead rate of P 4 per direct labor hour. The standard direct labor hours allowed for October production was 18,000. An analysis of the factory overhead indicates that in October, Ant had an unfavorable budget (controllable) variance of P 1,000 and an unfavorable volume variance of P 500. Ant uses a two-way analysis of overhead variance. 34. What is the actual factory overhead measured in October? a. P 121,000 b. P 122,000 C. P 122,500 d. P 123,000 35. What is the applied (standard) factory overhead in October? a. P 121,500 b. P 122,000 C. P 122,500 d. P 123,000 36. Under the three-variance method for analyzing factory overhead, budget or spending variance is computed by subtracting from actual factory overhead costs incurred the a. Budget allowance based on actual input b. Budget allowance based on actual output c. Budget allowance based on standard input Budget allowance based on standard output d.
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