A company allocates overhead using a standard overhead rate of $4.80 per direct labor hour and 2 direct labor hours per unit. For this period, the company planned production of 10,140 units (80% of its capacity) and budgeted $36,504 in variable overhead and $62,800 in fixed overhead. The company actually produced 11,600 units this period and incurred actual total overhead costs of $116,430. Enter answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead volume variance. Note: For each variance, select favorable, unfavorable, or no variance. Do not round intermediate calculations. Volume variance Volume Variance < Required 2 Required 3 >

A company allocates overhead using a standard overhead rate of $4.80 per direct labor hour and 2 direct labor hours per unit. For this period, the company planned production of 10,140 units (80% of its capacity) and budgeted $36,504 in variable overhead and $62,800 in fixed overhead. The company actually produced 11,600 units this period and incurred actual total overhead costs of $116,430. Enter answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead volume variance. Note: For each variance, select favorable, unfavorable, or no variance. Do not round intermediate calculations. Volume variance Volume Variance < Required 2 Required 3 >

Name: Chs 18-25A company allocates overhead using a standard overhead rate
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Chs 18-25A company allocates overhead using a standard overhead rate of $4.80 per direct labor hour and 2 direct labor hoursper unit. For this period, the company planned production of 10,140 units (80% of its capacity) and budgeted $36,504 invariab

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following excerpt from the standard cost card of its only product: Fixed manufacturing overhead During the most recent period, the following additional Information was available: • The total actual fixed overhead cost was $275,000. • The budgeted amount of fixed overhead cost was $285,000. • 46,000 direct labor-hours were actually used to produce 24,100 units. What is the standard hours allowed for the actual output? Multiple Choice O 92.000 hours 45,833 hours 48,200 hours Standard Hours. 2 hours. 47,500 hours Standard Rate $6.00 per hour Standard Cost $12.00
please solve for overhead rate per direct labor cost, overhead rate per direct labor hour, and overhead rate per machine hour
Cavy Company estimates that total factory overhead costs will be $1,039,500 for the year. Direct labor hours are estimated to be 110,000.
Kenmore Fabrication estimated that direct labor cost for the year would be $654,400. The company also estimated that fixed overhead would be $490,800 and variable overhead would be 35 percent of direct labor cost. Kenmore applies its overhead on the basis of direct labor cost. During the year, all fixed overhead costs were exactly as planned ($490,800) and variable overhead was also incurred as expected. There was $32,700 in underapplied overhead. Required: How much did Kenmore spend on direct labor cost during the period? Actual direct labor cost
Daget Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $364,980. At the end of the year, actual direct labor-hours for the year were 24,000 hours, manufacturing overhead for the year was overapplied by $8,900, and the actual manufacturing overhead was $361,660. The predetermined overhead rate for the year must have been closest to: Multiple Choice $15.21 per direct labor-hour $15.57 per direct labor-hour $15.07 per direct labor-hour O $15.44 per direct labor-hour
The Thomlin Company forecasts that total overhead for the current year will be $11,764,000 with 180,000 total machine hours. Year to date, the actual overhead is $7,870,000 and the actual machine hours are 83,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours. a.$3,217,500 overapplied b.$3,217,500 underapplied c.$2,475,000 underapplied d.$2,475,000 overapplied
Gilchrist Corporation bases its predetermined overhead rate on the estimated machine - hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine - hours for the upcoming year at 22, 900 machine - hours. The estimated variable manufacturing overhead was $6.67 per machine - hour and the estimated total fixed manufacturing overhead was $ 665,932. The predetermined overhead rate for the recently completed year was closest to:
Manufacturing overhead was estimated to be $480, 700 for the year along with an estimated 20,900 direct labor hours. Actual manufacturing overhead was $421,800, and actual labor hours were 21,300. The amount credited to the Manufacturing Overhead account would be: Multiple Choice $480, 700. $421,800. $489, 900. $441,700.
York Corporation is using a predetermined overhead rate of $22.30 per machine-hour that was based on estimated total fixed manufacturing I overhead of $446,000 and 20,000 machine-hours for the period. The company incurred actual total fixed manufacturing overhead of $409,000 and 18,200 total machine-hours during the period. The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to: $446,000 $37,000 $372,190 O $405,860
At the beginning of the year, Custom Manufacturing set its predetermined overhead rate using the following estimates: overhead costs, $520,000, and direct materials costs, $200,000.At year-end, the company reports that actual overhead costs for the year are $528,700 and actual direct materials costs for the year are $200,000. 1. Determine the predetermined overhead rate using estimated direct materials costs 2. Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year. 3. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the predetermined overhead rate. Determine whether overhead…
Osborn Manufacturing uses a predetermined overhead rate of $19.90 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $272,630 of total manufacturing overhead for an estimated activity level of 13,700 direct labor-hours. The company actually incurred $270,000 of manufacturing overhead and 13,200 direct labor-hours during the period. Required: 1. Calculate the underapplied or overapplied manufacturing overhead. 2. Assume the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the closing journal entry increase or decrease gross margin? By how much? 1. Manufacturing overhead 2. The gross margin would by by
A company recorded $42,400 of costs related to factory overhead. Alpha's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $42,700 would be incurred, and 4,500 direct labor hours would be worked. During March, 6,250 hours were actually worked. Use this information to determine the amount of factory overhead that was (over) or under applied.