Crane Company is preparing its manufacturing overhead budget for 2022. Relevant data consist of the following. Units to be produced (by quarters): 10,600, 12,720, 14,840, 16,960. Direct labor: Time is 1.50 hours per unit. Variable overhead costs per direct labor hour: indirect materials $0.8; indirect labor $1.2; and maintenance $0.5. Fixed overhead costs per quarter: supervisory salaries $43,725; depreciation $15,900; and maintenance $12,720. Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2 decimal places, e variable expenses before fixed expense.) CRANE COMPANY Manufacturing Overhead Be

Crane Company is preparing its manufacturing overhead budget for 2022. Relevant data consist of the following. Units to be produced (by quarters): 10,600, 12,720, 14,840, 16,960. Direct labor: Time is 1.50 hours per unit. Variable overhead costs per direct labor hour: indirect materials $0.8; indirect labor $1.2; and maintenance $0.5. Fixed overhead costs per quarter: supervisory salaries $43,725; depreciation $15,900; and maintenance $12,720. Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2 decimal places, e variable expenses before fixed expense.) CRANE COMPANY Manufacturing Overhead Be

Name: Direct labor hoursvVVVVManufacturing overhead rate per direct labor h
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Description: Direct labor hoursvVVVVManufacturing overhead rate per direct labor hour)QuarterYear Crane Company is preparing its manufacturing overhead budget for 2022. Relevant data consist of the following.10,600, 12,720, 14,840, 16,960.Units to be produced (b

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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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…
The manufacturing overhead budget of Reigle Corporation is based on budgeted direct labor-hours. The February direct labor budget indicates that 5 direct labor-hours will be required in that month. The variable overhead rate is $4.7 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $82,610 per month, which includes depreciation of $17,070. All other fixed manufacturing overhead costs represent current cash flows. Required: 1. Determine the cash disbursements for manufacturing overhead for February 2. Determine the predetermined overhead rate for February. Note: Round your answer to 2 decimal places. 1. Cash disbursements for manufacturing overhead 2. Predetermined overhead rate
Assume the following five facts: • budgeted fixed manufacturing overhead for the coming period of $308,750 • budgeted variable manufacturing overhead of $4.00 per direct labor hour, • actual direct labor hours worked of 64,000 hours, and • budgeted direct labor-hours to be worked in the coming period of 65,000 hours. The company allocates MOH based on direct-labor hours. The predetermined plantwide overhead rate for the period is closest to:A. $8.50 per dlh B. $8.82 per dlh C. $$8.75 per dlh D. $8.63 per dlh
A summary of Coastal Equipment's flexible budget for manufacturing overhead follows: Cost Formula Direct Labour - Hours (DLHS) Overhead Costs (per direct labour-hour) 4,400 4,900 5,400 Variable cost $2.20 $9,680 $ 10,780 $11,880 Fixed cost 54,560 54,560 54,560 Total overhead cost $ 64,240 $ 65,340 $ 66,440 The following information is available for a recent period: The denominator activity of 4,400 DLHS was chosen to compute the predetermined overhead rate. At the 4,400 standard DLH level of activity, the company should produce 2,200 units of product. The company's actual operating results were as follows: Number of units produced 2,350 Actual DLHS 4,400 Actual variable overhead costs $9,890 Actual fixed overhead costs $ 54,900 Required: Compute the predetermined overhead rate and break it down into variable and fixed cost elements. Note: Round your answers to 2 decimal places. What were the standard hours allowed for the year's actual output? Note: Do not round intermediate…
In Paige Company, direct labor is $20 per hour. The company expects to operateat 10,000 direct labor hours each month. In January 2014, direct labor totaling $204,000is incurred in working 10,400 hours. Prepare (a) a static budget report and (b) a fl exiblebudget report. Evaluate the usefulness of each report.
aHRiIh mahufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $18 per direct labor-hour. The following data are obtained from the accounting records for June 2020: Direct materials $140,000 Direct labor (4,000 hours @ $10/hour) 40,000 Indirect labor 13,000 Plant facility rent 30,000 Depreciation on plant mach. & equip. 22,500 Sales commissions 24,000 Administrative expenses 28,000 For June 2020, manufacturing overhead is O overallocated by $6.500 Ounderallocated by $21.500 ovrcallocated by $21.500
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: Units to be produced Each unit requires 0.75 direct labor-hours, and direct laborers are paid $16.00 per hour. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 11,000 8,000 8,500 10,800 Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) Required production in units Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost Rordan Corporation Direct Labor Budget 2nd Quarter 8,000 1st Quarter 11,000 8,250✔✔ Answer is not complete. $ 132,000 6,000 3rd Quarter 8,500 6,375 4th Quarter 10,800 S 96,000 $ 102,000 $ 8,100 129,600 Year
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