Chillco Corporation produces contalners of frozen food. During April, Chillco produced 720 cases of food and incurred the following actual costs. $ 5,600 21,e00 69,750 34,500 Variable overhead Fixed overhead Actual labor cost (4,500 direct-labor hours) Actual material cost (15,000 pounds purchased and used) Overhead is budgeted and applied using direct-labor hours In a standard costing system. Standard cost and annual budget Information are as follows: standard Costs per Case Direct labor (6 hours at $15 per hour) Direct material (20 pounds at $2.10 per pound) Variable overhead (6 direct-labor hours at $1.60 per hour) Fixed overhead (6 direct-labor hours at $4 per hour) $ 90.ee 42.e0 9.60 24.e0 Total $165.60 Annual Budget Information $ 96,000 $240,000 60, 000 direct-labor hours Variable overhead Fixed overhead Planned activity for year Requlred: Compute the following cost varlances from the avallable data. (Indicate the effect of each varlance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (I.e., zero varlance). Do not round Intermedlate calculatlons.) Direct-material price variance Direct-material purchase price variance 42 Direct-material quantity variance

Chillco Corporation produces contalners of frozen food. During April, Chillco produced 720 cases of food and incurred the following actual costs. $ 5,600 21,e00 69,750 34,500 Variable overhead Fixed overhead Actual labor cost (4,500 direct-labor hours) Actual material cost (15,000 pounds purchased and used) Overhead is budgeted and applied using direct-labor hours In a standard costing system. Standard cost and annual budget Information are as follows: standard Costs per Case Direct labor (6 hours at $15 per hour) Direct material (20 pounds at $2.10 per pound) Variable overhead (6 direct-labor hours at $1.60 per hour) Fixed overhead (6 direct-labor hours at $4 per hour) $ 90.ee 42.e0 9.60 24.e0 Total $165.60 Annual Budget Information $ 96,000 $240,000 60, 000 direct-labor hours Variable overhead Fixed overhead Planned activity for year Requlred: Compute the following cost varlances from the avallable data. (Indicate the effect of each varlance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (I.e., zero varlance). Do not round Intermedlate calculatlons.) Direct-material price variance Direct-material purchase price variance 42 Direct-material quantity variance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3 DLH per unit. For March, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following budget. The company actually operated at 90% capacity (11,250 units) in March and incurred actual total overhead costs of $103,425. Overhead Budget Production in units. Budgeted variable overhead Budgeted fixed overhead 1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 10,000 units x 3.00 DLH per unit. 2. Compute the total overhead variance. 3. Compute the overhead controllable variance. 4. Compute the overhead volume variance. Required 1 Required 2 Complete this question by entering your answers in the tabs below. 80% Operating Levels 10,000 $ 42,000 $ 57,000 Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 30,000 DLH, computed as 10,000…
Addison Company budgets production of 2,760 units during the second quarter. Information on its direct labor and its variable and fixed overhead is as follows: Direct labor Variable overhead Fixed overhead 1. Prepare a direct labor budget. 2. Prepare a factory overhead budget. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Each finished unit requires 5 direct labor hours, at a cost of $8 per hour. Budgeted at the rate of $10 per direct labor hour. Budgeted at $550,000 per quarter. Prepare a direct labor budget. Units to produce Direct labor hours needed Cost of direct labor ADDISON COMPANY Direct Labor Budget Second Quarter 2,760 units
The following information relates to Modern, Inc.'s overhead costs for the month: Time Runn Attempt due 2 Hours, & Static budget variable overhead $8,000 24/7 Pro Static budget fixed overhead $4,000 Static budget direct labor hours 1,300 R Liv Static budget number of units to be produced 5,000 Modern allocates manufacturing overhead to production based on standard direct labor hours. Last month, Modern reported the following actual results: actual variable overhead $11,000 actual fixed overhead $3,000 actual direct labor hours 1,400 actual number of units produced 7,000 For the month, Modern's variable overhead efficiency variance is (Round your answer to the nearest whole dollar.)
Bugaboo Co. manufactures three types of cookies: Fluffs, Crinkles, and Snaps. The production process is relatively simple, and factory overhead costs are allocated to products using a single plantwide factory overhead rate based on direct labor hours. Information for the month of May, Bugaboo's first month of operations, follows: BudgetedUnit Volume Direct LaborHours Per Unit Fluffs 80,000 boxes 0.10 Crinkles 60,000 boxes 0.20 Snaps 20,000 boxes 0.50 Bugaboo has budgeted direct labor costs for May at $8.50 per hour. Budgeted direct materials costs for May are: Fluffs, $0.75/unit; Crinkles $0.40/unit; and Snaps $0.30/unit. Bugaboo's budgeted overhead costs for May are: Indirect labor $280,000 Utilities 65,000 Supplies 45,000 Depreciation 30,000 Total $420,000 i need to find the plantwide factory overhead rate per direct labor hour, the product cost for each cookie type
The following information relates to Steele Manufacturing's overhead costs for the month: Static budget variable overhead $35,900 Static budget fixed overhead $15,600 Static budget direct labor hours 15,400 hours Static budget number of units 5,500 units Steele allocates variable manufacturing overhead to production based on standard direct labor hours. Steele reported the following actual results for last month: actual variable overhead, $35,400;actual fixed overhead, $15,400; actual production of 5,400 units at 2.4 direct labor hours per unit. The standard direct labor time is 2.8 direct labor hours per unit. Compute the variable overhead efficiency variance. (Round the answer to the nearest dollar.) A. $4,474 U B. $5,033 U C. $4,474 F D. $5,033 F
The production budget for Manner Company shows units to produce as follows: July, 650; August, 710; and September, 570. Each unit produced requires one hour of direct labor. The direct labor rate is budgeted at $17 per hour in July and August, but is budgeted to be $17.75 per hour in September. Prepare a direct labor budget for the months July, August, and September. Units to produce Direct labor hours needed Cost of direct labor MANNER COMPANY Direct Labor Budget July 650 August 710 September 570 units hs
Crash Bang, Co. uses a standard cost system and provides the following information: Standards: Static budget variable overhead $5,590.00. Static budget fixed overhead $22,250.00. Static budget direct labor hours 566 hours. Static budget number of units 21,000 units. Static budget direct labor hours 0.023 hours per unit. Crash Bang, Co. allocates manufacturing overhead to production based on standard direct labor hours. Crash Bang, Co. reported the following actual results for 2020: Actual: Number of units produced 19,800. Actual variable overhead $5,230.00 Actual fixed overhead $24,570.00. Actual direct labor hours 485. (Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Compute the fixed overhead allocation rates.
The production budget for Manner Company shows units to produce as follows: July, 700; August, 760; and September, 620. Each unit produced requires one hour of direct labor. The direct labor rate is budgeted at $17 per hour in July and August, but is budgeted to be $17.75 per hour in September. Prepare a direct labor budget for the months July, August, and September. Units to produce Direct labor hours needed Cost of direct labor MANNER COMPANY Direct Labor Budget July 700 August 760 September 620 units
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Its Production Department's planning budget and flexible budget are based on the following formulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Direct labor Indirect labor Utilities Supplies Equipment depreciation Cost Formulas $16.309 $4,200+ $1.809 $5,800+ $0.909 $1,800+ $0.109 The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below: Factory rent Property taxes Factory administration $18,600 + $2.609 $8,100 $2,800 $13,300 + $0.709 Actual Cost Incurred in March $ 66,780 $ 10,940 $ 9,970 $ 2,430 $ 29,000 $ 8,500 $ 2,800 $ 15,470 Required: 1. Prepare the Production Department's planning budget for the month.
A company reports the following budgeted overhead costs and budgeted cost driver activity. Activity (Cost driver) Quality (number of units inspected) Factory services (square feet) Purchasing (number of orders) Activity Quality Factory services Purchasing Budgeted Cost $ 52,116 $ 123,216 $ 17,472 Use activity-based costing to compute the activity rate for each activity. Note: Round your "Activity Rate" to 2 decimal places. Budgeted Cost $ 52,116 123,216 17,472 Budgeted Activity of Cost Driver Standard Deluxe Total 3,180 860 3,820 2,220 188 228 Budgeted Activity Usage Activity Rate 4,040 6,040 416
Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September: Standards Direct materials Direct labor, Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual results Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual) Direct materials Direct labor Variable overhead Fixed overhead Price Variance F F KA -0.75 pounds at $8.00 per pound 1.25 hours at $26.00 per hour $ 21.20 K4 $ 416,400 17,350 Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, 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. 10,300 pounds at $7.40 per…