A factory had an activity level of 110% with the following output. Units Standard minutes each Product A 5,000 5 Product B 2,500 10 Product C 3,000 15 The budgeted direct labour cost was £5,000 Calculate: (i) The budgeted standard hours (ii) Budgeted labour cost per standard hour

A factory had an activity level of 110% with the following output. Units Standard minutes each Product A 5,000 5 Product B 2,500 10 Product C 3,000 15 The budgeted direct labour cost was £5,000 Calculate: (i) The budgeted standard hours (ii) Budgeted labour cost per standard hour

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

The master budget of Knope Inc. shows that the planned activity level for next year is expected to be 25,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labor................................................. $720,000 Machine supplies.............................................180,000 Indirect materials.............................................210,000 Depreciation on factory building..................150,000 Total manufacturing overhead.................$1,260,000 A flexible budget for a level of activity of 30,000 machine hours would show total manufacturing overhead costs of Group of answer choices $1,260,000 $1,512,000 $1,362,000 $1,482,000
Robin has the following budgeted data for the forthcoming month: Products Sparrow Thrush Magpie 000s 000s 000s Sales and production (units) 50 40 30 £ £ £ Selling price (per unit) 45 95 73 Direct material and labour 32 84 65 Hours Hours Hours Machining (machine hours) 2 5 4 Assembly (direct labour hours per unit) 7 3 2 Overheads allocated and apportioned to production departments are normally recovered in product costs at £1.20/machine hour in the machining department and £0.825/direct labour hour in the assembly department. You ascertain that the above overheads could be reanalysed as follows: £000s Cost driver Quantity in month Machine services Assembly services Set-up costs Order processing Purchasing 357 318 26 156 84 941 Machine hours Direct labour hours Set-ups Customer orders Supplier orders 520 32,000…
The following data is given for the Bahia Company: Budgeted production 1,038 units Actual production 958 units Materials: Standard price per pound $1.819 Standard pounds per completed unit 12 Actual pounds purchased and used in production 11,151 Actual price paid for materials $22,860 Labor: Standard hourly labor rate $14.49 per hour Standard hours allowed per completed unit 4.1 Actual labor hours worked 4,933.7 Actual total labor costs $75,239 Overhead: Actual and budgeted fixed overhead $1,182,000 Standard variable overhead rate $24.00 per standard labor hour Actual variable overhead costs $138,144 Overhead is applied on standard labor hours. The variable factory overhead controllable variance is a.$91,098.27 unfavorable b.$91,098.27 favorable c.$43,876.80 unfavorable d.$43,876.80 favorable
The following data are given for Zoyza Company: Line Item Description Value Budgeted production (at 100% of normal capacity) 26,000 units Actual production 27,500 units Materials: Standard price per ounce $6.50 Standard ounces per completed unit 8 Actual ounces purchased and used in production 228,000 Actual price paid for materials $1,504,800 Labor: Standard hourly labor rate $22.00 per hour Standard hours allowed per completed unit 6.6 Actual labor hours worked 183,000 Actual total labor costs $4,020,000 Overhead: Actual and budgeted fixed overhead $1,029,600 Standard variable overhead rate $24.50 per standard labor hour Actual variable overhead costs $4,520,000 Overhead is applied on standard labor hours. The fixed factory overhead volume variance is a. $73,250 favorable b. $59,400 favorable c. $59,400 unfavorable
A company identified the following partial list of activities, costs, and activity drivers expected for the next year: Budgeted Costs $ 83,600 $ 8,800 $ 40,500 Activity Extrusion costs Handling costs Packaging costs Production volume Batches made Orders filled Product A 750,000 units 200 batches 75 Cost Driver Number batches made Number of orders filled Number of units made Product B 600,000 units 750 batches 200 Calculate activity rates for each of the three activities using activity-based costing (ABC). 4
A company has the following budgeted and actual cost data for manufacturing 2,000 Product X units: Direct materials $50 per unit Direct labor $40 per unit Variable manufacturing overhead $ 5 $40,000 per year per unit Fixed manufacturing Overhead Product X sells for $200 per unit. Assume no beginning or ending inventories. The Gross Profit for selling 15 Product X units is %24
Ace Widget Company is a process manufacturer. The company budgeted 11,500 direct labor hours, but it had actual direct labor hours of 12,000. The company produced 60,000 equivalent units, spending $300,000 on material. The labor rate is $15 per hour, and overhead is applied at a rate of $25 per direct labor hour. What is the total manufacturing cost per unit? a. $11.92 b. $15.00 c. $12.67 d. $13.00
8. A company's over absorbed overhead for a period is £4,000. The budgeted hours for the period was 40,000hours and the budgeted overhead cost for the same period had been £160,000. If the actual hours worked are 45,000hours, showing your workings, calculate the actual overhead cost incurred.
The following data are given for Stringer Company: Budgeted production Actual production Materials: Standard price per ounce Standard ounces per completed unit Actual ounces purchased and used in production Actual price paid for materials Labor: Standard hourly labor rate Standard hours allowed per completed unit Actual labor hours worked Actual total labor costs 907 units 1,033 units $1.91 11 11,704 $23,993 $14.84 per hour 4.6 5,319.95 $81,129 Overhead: Actual and budgeted fixed overhead Standard variable overhead rate Actual variable overhead costs Overhead is applied on standard labor hours. Do not round interim calculations. Round your final answer to the nearest dollar. The direct materials price variance is $1,071,000 $28.00 per standard labor hour $148,959
Production Department 1 (PD1) and Production Department 2 (PD2) had factory overhead budgets of $26,000 and $48,000, respectively. Each department was budgeted for 5,000 direct labor hours of production activity. Product T required 5 direct labor hours in PD1 and 2 direct labor hours in PD2. What is the factory overhead cost associated with Product T, assuming that factory overhead is allocated using the multiple production rate method? a. $40.40 b. $45.20 c. $26.00 d. $58.40
he following data is given for the Bahia Company: Budgeted production 1,091 units Actual production 974 units Materials: Standard price per pound $1.846 Standard pounds per completed unit 10 Actual pounds purchased and used in production 9,448 Actual price paid for materials $19,368 Labor: Standard hourly labor rate $14.80 per hour Standard hours allowed per completed unit 4.8 Actual labor hours worked 5,016.1 Actual total labor costs $76,496 Overhead: Actual and budgeted fixed overhead $1,055,000 Standard variable overhead rate $25.00 per standard labor hour Actual variable overhead costs $140,451 Overhead is applied on standard labor hours. The variable factory overhead controllable variance is
The Pipe Company manufactured two products A and B during the first year of its operations. For purposes of product costing, an overhead rate of application of $1.70 per direct labour hour was used based on budgeted factory overheads of $ 3,40,000 and budgeted direct labour hours of 2,00,000 as follows: Budgeted overheads $2,40,000 $ 1,00,000 $3,40,000 Budgeted hours Department 1 Department 2 1,00,000 1,00,000 2,00,000 The number of Labour hours required to manufacture each of these products was : Product A Product B In Department 1 In Department 2 4 1 1 4 At the end of the year, there was no work-in-progress. There were, however, 2,000 and 6,000 finished units respectively of products A and B on hand. Assume that budgeted activity was attained. (a) What was the effect on the Company's income of using a plantwise overhead rate instead of departmental overhead rates ? (b) Assume that material and labour costs per unit of product A were $ 10 and that the selling price was established by…