Show SolutionCorrect Answer 30.C34.D35.A 29. The flexible budget of Spider Company is summarized below:Variable overheadFixed overheadTotal factory overheadPercent of normal operating capacity80%90%100%P 23,000P 21,00050,000P 25,00050,00050,000P 71,000 P 73,000 P 75,000C. 4.00d. 5.00100,000 of units of product are produced when the company operates at its normal capacity. Thestandard labor time per unit is 15 minutes. Actual production for the year was 90,000 units ofproduct in 44,000 hours. What is the standard variable factory overhead rate per hour?a. 1.00b. 1.25110%P 27,00050,000P 77,000NOTE: Based on 100% operating capacity the variable rate is: P 25,000 ÷ 25,000 hours = P 1Flexible 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. 22,500b. 50,000c. 72,500d. 75,00031. Information on Caterpillar Company's overhead costs is as follows: Items 34 and 35 are based on the following informationAnt Company's budgeted fixed factory overhead cost is P 50,000 per month plus a variable factory overheadrate of P 4 per direct labor hour. The standard direct labor hours allowed for October production was18,000. 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 analysisof overhead variance.34. What is the actual factory overhead measured in October?a. P 121,000b. P 122,000C. P 122,500d. P 123,00035. What is the applied (standard) factory overhead in October?a. P 121,500b. P 122,000C. P 122,500d. P 123,00036. Under the three-variance method for analyzing factory overhead, budget or spending variance iscomputed by subtracting from actual factory overhead costs incurred thea. Budget allowance based on actual inputb. Budget allowance based on actual outputc. Budget allowance based on standard inputBudget allowance based on standard outputd.

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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:

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 20E: Calculating amount of factory overhead applied to work in process The overhead application rate for...

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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

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Correct Answer

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:

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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Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
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Please solve both a and b questions
Required information [The following information applies to the questions displayed below.] Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Production (in units). Overhead. Variable overhead Fixed overhead Total overhead Flexible Budget at 80% Capacity 52,750 $ 290, 125 52,750 $ 342,875 Standard overhead rate 2. Standard overhead applied 3. Overhead variance Actual Results 48,400 $341,300 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 26,375 DLH, computed as 52,750 units x 0.5 DLH per unit. 2. Compute the standard overhead applied. 3. Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)
Mi.2
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! Required information [The following information applies to the questions displayed below.] Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Production (in units) Overhead Variable overhead Fixed overhead Total overhead Flexible Budget at 80% Capacity 54,750 $ 301,125 54,750 $ 355,875 1. Standard overhead rate 2. Standard overhead applied 3. Overhead variance Actual Results 51,600 $367,700 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 27,375 DLH, computed as 54,750 units x 0.5 DLH per unit. 2. Compute the standard overhead applied. 3. Compute the total overhead variance. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.