Bullseye Company manufactures dartboards. Its standard cost information follows:Direct materials (cork board)Direct laborStandard Quantity0.50 square feet0.90 hourVariable manufacturing overhead (based on directlabor hours)Fixed manufacturing overhead ($21,750/87,000)Bullseye has the following actual results for the month of September:Number of units produced and soldNumber of square feet of corkboard purchased and usedCost of corkboard usedNumber of labor hours workedDirect labor costVariable overhead costFixed overhead cost0.90 hourStandard Price (Rate)$ 1.30 per square feet$5.00 per hour$0.50 per hour74,00043,000$ 47,20080,000$ 98,000$ 103,880$ 33,000StandardUnitCost$ 0.654.500.450.25Required:1. Calculate the fixed overhead spending variance for Bullseye.Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zerovariance).2. Calculate the fixed overhead volume variance for Bullseye.Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zerovariance).

Fixed Overhead Spending Variance: $21,200 (U)Fixed Overhead Volume Variance: $21,500…

Answered: Bullseye Company manufactures…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Rardin Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 7.4 ounces Direct labor 0.3 hours Variable overhead 0.3 hours The company reported the following results concerning this product in July. Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. Required: b. Compute the materials price variance. Do not indicate whether Favorable or Unfavorable. $8.00 per ounce $16.00 per hour $7.00 per hour 2,200 units 16,420 ounces 17,900 ounces 720 hours $141,410 $12,528 $5,112
Linger Products uses a two-stage allocation method to assign costs to its products. The following information has been provided for March: Product 1 Product 2 Total Units 3,000 2,000 5,000 Machine hours 2,000 4,000 6,000 Direct labor hours 2,000 2,000 4,000 Direct materials $ 60,000 $ 60,000 $ 120,000 Direct labor 45,000 45,000 90,000 Manufacturing overhead Utilities (machine related) $ 3,000 Supplies (labor related) 8,000 Training (labor related) 20,000 Supervision (labor related) 17,000 Machine depreciation (machine related) 24,000 Lease on factory (machine related) 33,000 Miscellaneous (labor related) 5,000 Total manufacturing overhead $ 110,000 Required:(a) Allocate the manufacturing overhead to two cost pools: machine-related and labor-related.(b)…
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Manufacturing overhead data for the production of Product H by Kingbird Company, assuming the company uses a standard cost system, are as follows. Overhead incurred for 46,100 actual direct labor hours worked $281,880 Overhead rate (variable $5; fixed $1) at normal capacity of 58,300 direct labor hours $6 Standard hours allowed for work done $47,180 Compute the total overhead variance
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es Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Department. Machining Assembly Maintenance Cafeteria Required A Direct Costs $135,000 85,000 47,000 36,000 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. b. The allocations are made in the reverse order (starting with Cafeteria). Complete this question by entering your answers in the tabs below. Required B Required A Proportion of Services Used by Maintenance. Cafeteria. Machining Assembly 0.7 The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Required B Required: Use the step method to allocate the service costs, using the following: a. The…
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