Albert Foods processes bags of organic frozen fruits sold at specialty grocery stores (Click the icon to view additional information) Read the requirements Requirement 1, How much variable overhead would have been allocated to production? How much fixed overhead would have been allocated to production? The vanable overhead allocated to production is The company allocates manufacturing overhead based on direct labor hours. Albert has budgeted fixed manufacturing overhead for the year to be $629,000. The predetermined fixed manufacturing overhead rate is $16.60 per direct labor hour, while the standard variable manufacturing overhead rate is $0.50 per direct labor hour. The direct labor standard for each case is one - quarter (0.25) of an hour. The company actually processed 155,000 cases of frozen organic fruits during the year and incurred $663,800 of manufacturing overhead. Of this amount, $632,000 was fixed. The company also incurred a total of 42,400 direct labor hours.
Albert Foods processes bags of organic frozen fruits sold at specialty grocery stores (Click the icon to view additional information) Read the requirements Requirement 1, How much variable overhead would have been allocated to production? How much fixed overhead would have been allocated to production? The vanable overhead allocated to production is The company allocates manufacturing overhead based on direct labor hours. Albert has budgeted fixed manufacturing overhead for the year to be $629,000. The predetermined fixed manufacturing overhead rate is $16.60 per direct labor hour, while the standard variable manufacturing overhead rate is $0.50 per direct labor hour. The direct labor standard for each case is one - quarter (0.25) of an hour. The company actually processed 155,000 cases of frozen organic fruits during the year and incurred $663,800 of manufacturing overhead. Of this amount, $632,000 was fixed. The company also incurred a total of 42,400 direct labor hours.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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need all requirements with complete and correct workings answer in text
Transcribed Image Text:Requirements
1.
How much variable overhead would have been allocated to production? How much fixed
overhead would have been allocated to production?
2.
3.
Compute the variable MOH rate variance and the variable MOH efficiency variance. What do
these variances tell managers?
Compute the fixed MOH budget variance and the fixed overhead volume variance. What do
these variances tell managers?
h
- X
Transcribed Image Text:Albert Foods processes bags of organic frozen fruits sold at specialty grocery stores
(Click the icon to view additional information)
Read the requirements
Requirement 1, How much variable overhead would have been allocated to production? How much fixed overhead would have been allocated to production?
The vanable overhead allocated to production is
The company allocates manufacturing overhead based on direct labor hours.
Albert has budgeted fixed manufacturing overhead for the year to be $629,000.
The predetermined fixed manufacturing overhead rate is $16.60 per direct
labor hour, while the standard variable manufacturing overhead rate is $0.50 per
direct labor hour. The direct labor standard for each case is one - quarter (0.25) of
an hour.
The company actually processed 155,000 cases of frozen organic fruits during the
year and incurred $663,800 of manufacturing overhead. Of this amount, $632,000
was fixed. The company also incurred a total of 42,400 direct labor hours.
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