Cerum indus has a practice of using absorption costing.It quarter budgeted fixed overheads were 4,30,000, budgeted production was40,000 units, fixed overhead cost was over absorbed by 16,000 and fixedoverhead expenditure variance was at 30,000 (F).Find actual production.

Fixed overhead expenditure variance = Budgeted Fixed overhead - Actual Fixed overhead 30000 =…

Answered: Cerum indus has a practice of using…

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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A company manufactures one product, the JB3. Budgeted fixed overhead per unit is £1 and budgeted output is 4,000 units. Actual output is 4,800 units and the actual overheads are £44,800. What is the fixed overhead expenditure variance? a) £3,200 Adverse b) £4,800 Favourable c) £4,800 Adverse d) £3,200 Favourable
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The following standard costs were used for one of its products: Standard Cost per Unit Fixed overhead Total 9 hours @ $13 per hour $ 117 Overhead is applied to products on the basis of standard direct labor hours for actual production. The following information is available regarding the company's operations for the period: Actual units produced Total actual direct labor hours Actual fixed manufacturing overhead incurred Budgeted fixed manufacturing overhead for the period Budgeted units for the period Required: Calculate the fixed overhead variances. Use your answer to answer the following questions. 1,200 units 8,500 hours $110,000 $122,850 1,050 units
QUESTION ONEDabwiso Limited uses a standard costing system. The standard cost per unit of Product D is as follows: KDirect material 2 500Direct labour 1 200Production overheads: Variable 600Fixed 500Standard production cost 4 800Standard selling price 7 500The standard fixed production overhead absorption rate was based on a budgeted activity of 10,000 units.During Period 4, Production was 10,000 units as planned but sales were only 8,000 units. There was a total fixed production overhead variance of K500 000 adverse. All units were sold at K7,500 each.There were no opening inventory at the beginning of the period. Other costs incurred during the period were in relation to selling and distribution, and administration. These were…
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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…
Perez Company established a predetermined fixed overhead cost rate of $37 per unit of product. The company planned to make 6,100 units of product but actually produced only 5,300 units. Actual fixed overhead costs were $233,200. Required a. Determine the fixed cost spending variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the fixed cost volume variance and indicate whether it is favorable (F) or unfavorable (U). Note: For all requirements, Select "None" if there is no effect (i.e., zero variance). a. Total spending variance b. Total volume variance
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Wham Berhad operates a standard costing system and analysis of variances is made every month The standard cost card is as follows for a unit of product: RM 2.00 0.5kg at RM 4/kg 2 hours at RM 2/hour Direct materials 4.00 Direct labour Variable overheads 2 hours at RM 0.30/hour 0.60 7.40 14.00 Fixed overhead 2 hours at RM 3.70/hour Standard cost Standard profit Standard selling price 6.00 20.00 Budgeted output for the month of January 2021 was 5,100 units. Actual results were as follows: Production of 4,850 units were sold for RM95,600 Materials consumed in production amounted to 2,300 kgs at a total cost of RM9.800 Labour hours paid amounted to 8,500 hours at a cost of RM16,800 Actual hours worked amounted to 8,000 hours Variable overheads amounted to RM2,600 Fixed overheads amounted to RM42,300 I Required: a. Calculate ALL variances and prepare and operating statement for the month ending 31 January 2021. b. Critically evaluate the importance of setting standards in management…
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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.