Calico Company manufactures pilows. For 2020, the company expects fixed overhead coss of $378,000. Calico uses machine-hours to allocate fixed overhead costs and anticipates21,000 hours during the year b manufacture 28.000 pillows. During 2020, Calico manufactured 25,500 pilows and spent $377.000 on fxed overhead costs.Calculate the following:a. The fixed overhead rate for 2020b. The fixed overhead spending variance for 2020C. The production-volume vanance for 2020a. Calculate the fixed overhead rate for 2020.Fixed overhead rate per hour for 2020

a. Fixed overhead rate per hour = Budgeted fixed overhead costs / Budgeted machine hours =…

Answered: Calico Company manufactures pillows.…

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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The following data relate to direct labor costs for the current month : Standard Costs : 6,000 hours @ $ 12.00 per hour Actual Costs : 7,500 hours @ $ 11.60 per hour What is the direct labor rate variance ? $ 2,400 favorable $ 5,800 unfavorable $ 3,000 unfavorable None of the listed choices are correct $ 6,000 favorable
The Four Tops Company uses standard costing. During 2019, 12,000 pounds of Direct Material were purchased at an average cost of $5.20 per pound. Also during 2019, 10,500 pounds of Direct Material were used to produce 5,000 units. For 2019, the standards for Direct Material were 2 pounds per unit at $5.50 per pound. Compute the Direct Materials Price Variance for 2019. Multiple Choice $2,750 Favorable $2,750 Unfavorable $3,600 Unfavorable $3,600 Favorable
Rose Company uses a flexible budget for manufacturing overhead based on direct labor hours. The following information are from the yearly static overhead budget for the Production Department for 2023. It is based on 300,000 direct labor hours. Variable Costs Fixed Costs Indirect labor ($1.2 per DL hour) $30,000 Supervision $ 5,000 Supplies and lubricants ($0.5 per DL hour) 12,500 Depreciation 2,000 Maintenance ($0,7 per DL hour) 17,500 Property taxes 1,500 Utilities ($0,4 per DL hour) 10,000 Insurance 1,000 During July, 24,500 direct labor hours were worked. The company incurred the following variable costs in July: indirect labor $30,200, supplies and lubricants $11,600, maintenance $17,500, and utilities $9,200. Actual fixed overhead costs were the same as monthly budgeted fixed costs. a.) Prepare a flexible monthly budget for the Production Department for the relevant range between 24,000 and 26,000 DL hours with increments of 1000 DL hours. b.) Prepare a flexible budget…
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Becker Bikes manufactures tricycles. The company expects to sell 380 units in May and 510 units in June. Beginning and ending finished goods for May are expected to be 110 and 75 units, respectively. June's ending finished goods are expected to be 85 units. The company's variable overhead is $4.00 per unit produced and its fixed overhead is $4,500 per month. Compute Becker's manufacturing overhead budget for May and June. Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Budgeted manufacturing overhead May June
Petrus Framing's cost formula for its supplies cost is $1,790 per month plus $10 per frame. For the month of March, the company planned for activity of 619 frames, but the actual level of activity was 624 frames. The actual supplies cost for the month was $8,500. The activity variance for supplies cost in March would be closest to:
Can you show me how this is done? How do I know if it is favorable or unfavorable? Bailey’s standard labor cost of producing one unit of Product DD is 1.8 hours at a rate of $10.1 per hour. During August, 2,515 hours were incurred at a cost of $12.9 per hour to produce 1,087 units of Product DD. Bailey’s direct labor efficiency variance is $__________ Indicate the amount and whether it is Favorable or Unfavorable by placing F or U by amount, do not skip a space and do not use $ in your answer. For example, if your answer is $1,000 favorable, answer 1000F Selected Answer: -5,639.84U Correct Answer: 5,640 ± 1 (U)
At the beginning of 2021, ABC Manufacturing Ltd., adopted the following standards for its direct material costs: Input Cost per Output Unit Direct labour 5 hours at $18 per hour $ 90 During the most recent month 2,600 output units were produced with 14,100 hours used at a cost of $17.5 per hour. What were the direct labour price variance and quantity variance, respectively?
Lily Company uses a standard cost accounting system. In 2025, the company produced 28,300 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49,900 direct labor hours. During the year, 131,200 pounds of raw materials were purchased at $0.94 per pound. All materials purchased were used during the year. (a) If the materials price variance was $1,312 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.) Your answer is correct. Standard materials price per pound $ (b) eTextbook and Media (c) Your answer is correct. Standard materials quantity per unit If the materials quantity variance was $17,100 unfavorable, what was the standard materials quantity per unit? eTextbook and Media Your answer is correct. What were the standard hours allowed for the units produced? Standard hours allowed 0.95 45,280 hours Attempts: 1 of 5 used 4 pounds…
Safeflower Systems allocates manufacturing overhead based on machine hours. Each connector should require 13 machine hours. According to the static budget, Safeflower expected to incur the following: (Click the icon to view the static budget information.) During August, Safeflower actually used 500 machine hours to make 86 connectors and spent $5,300 in variable manufacturing costs and $9,100 in fixed manufacturing overhead costs. Calculate the variable overhead cost variance for Safeflower. A. $290 F OB. $2,800 U OC. $5,890 F O-D. $3,090 F Data Table 1,300 machine hours per month (100 connectors x 13 machine hours per connector) $6,500 in variable manufacturing overhead costs $7,535 in fixed manufacturing overhead costs Print Done X

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