Cerum indus has a practice of using absorption costing. It quarter budgeted fixed overheads were 4,30,000, budgeted production was 40,000 units, fixed overhead cost was over absorbed by 16,000 and fixed overhead expenditure variance was at 30,000 (F). Find actual production.
Q: 2. Calculate all the variable overhead variances. (Indicate the effect of each variance by selecting…
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Q: Given on the following information, calculate the variable overhead rate variance. Actual variable…
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Q: Compute the labor and variable overhead price and efficiency variances.
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A: Variance is the difference between budgeted figures (cost and revenue) and actual figures.
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A: Controllable variance = Budgeted overhead (BO)- Actual overhead(AO)
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A: Variable Overhead (V-OH) Efficiency Variance is computed using the following formula: -
Q: overall (or net) overhead variance
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- on normal capacity and assuming factory overhead variances are not (3) Absorption costing, using actual prime cost and applied factory overhead, based 7. Comparison of direct costing to absorption costing. Hubert Corporation's (CGAAC adapted) prorated. 7. Comparison of direct costing to absorption costing. Hubert Corporation November income statement, based on direct costing, is as follows: $2,400.000 Sales (100,000 units @ S24).. . Variable cost of goods sold (100.000 units @ $12.. Contribution margin. . Less fixed expenses: 1.200,000 $1,200.000 $600,000 Factory overhead.. Marketing and administrative.... Operating income... 400,000 1,000,000 $ 200,000 Normal capacity for November is 150,000 units, with 145,000 units produced in November. Required: (1) Prepare the November income statement on an absorption costing basis, with applied factory overhead based on normal capacity and any over- or underapplied factory overhead closed to Cost of Goods Sold. (2) Reconcile and explain the…The controller at Wesson Company's manufacturing plant has provided you with the following information for the first quarter's operations: Direct materials Fixed manufacturing overhead costs Sales price Variable manufacturing overhead Direct labor Fixed marketing and administrative costs Units produced and sold during the quarter Variable marketing and administrative costs Required: a. Determine the variable cost per unit. b. Determine the variable manufacturing cost per unit. c. Determine the full absorption cost per unit. d. Determine the full cost per unit. e. Determine the profit margin per unit. f. Determine the gross margin per unit. g. Determine the contribution margin per unit. Note: Round your answer to 2 decimal places. a. Variable cost per unit b. Variable manufacturing cost per unit c. Full absorption cost per unit d. Full cost per unit e. Profit margin per unit f. Gross margin per unit g. Contribution margin per unit $ 116 per unit $ 2,540,000 $ 525 per unit $57 per unit…C) Standard Costing as a Management Tool. The C.E.O. then states that production reports have shown major differences between the actual costs and what was budgeted to be incurred. You suggest to him that a standard technique be used to identify and analyse the differences. The following information about the cost to produce one item is obtained Direct Materials - 6 pounds at $ 2.50 per pound Direct Labour -3.1 hours @ 12.00 per Hour Direct Materials Purchased for the month - 1,600 pounds $ 4,192 Direct Labour- 760 Hours 250 Units were produced. $ 15.00 $37.20 $ 8,740 You are asked to compute: 1) The total Material and Labour Variances. 2) The Material Price and Quantity Variance 3) The Labour Price and Quantity Variance.
- You Did It! (YDI) has the following standards for direct labor: o Estimated quantity 8,900 direct labor hours o Estimated unit variable $48 per hour o Estimated fixed costs $18,000 YDI actually used 8,300 direct labor hours during production at an average hourly wage rate of $49.20, and actually incurred total fixed costs of $17,600. Using this information, answer the following questions. Please circle to identify the variance as favorable or unfavorable. What is the direct labor volume variance? Favorable or unfavorable?The records of Heritage Home Supplies show the following for July: Standard direct labor-hours allowed per unit of output Standard variable overhead rate per standard direct labor-hour Good units produced Actual direct labor-hours worked Actual total direct labor cost Direct labor efficiency variance Actual variable overhead Required: Compute the direct labor and variable overhead price and efficiency variances. $ 34 3,600 13,925 $ 510,200 $ 17,670 F $ 473,450 Note: Do not round Intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct labor: Price variance Efficiency variance Variable overhead: Price variance Efficiency varianceInformation on Grixdale Partner's fixed overhead costs follows: Overhead applied Actual overhead Budgeted overhead $ 1,228,400 1,154,100 1,208,500 Required: What are the fixed overhead price and production volume variances? Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Fixed overhead price variance Fixed overhead production volume variance
- The December 31, 2019 trial balance for ABC Company included the following: purchases, P40,000; purchase returns and allowances, P2,000; transportation in, P3,000; ending inventory, P8,000. What was the cost of goods sold for 2019? a. P39,000 b. P38,000 c. P32,000 d. P33,000Subject: acountinganswer in text form please (without image)
- Information on Grixdale Partner's fixed overhead costs follows: Overhead applied $ 1,227,800 Actual overhead 1,153,200 Budgeted overhead 1,207,000 Required: What are the fixed overhead price and production volume variances? Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.Also, compute the fixed overhead production volume variance1. Using the four-variance approach, what is the volume variance? 2. Using the four-variance approach, what is the fixed overhead spending? 3. Using the four-variance approach, what is the variable overhead efficiency variance? 4. Using the four-variance approach, what is the variable overhead spending variance?