Exercise 2:Draw up a flexible budget for overhead expenses on the basis of the following data and deteminethe overhead rates at 70%, 80% and 90% plant capacity.At 80% CapacityOMR.Variable Overheads:Indirect labor12,0004,000Stores including sparesSemi-variable Overheads:Power (30% fixed, 70% variable)Repairs and maintenance (60% fixed, 40% variable)20,0002,000Fixed Overheads:DepreciationInsurance11,0003,000SalariesTotal Overheads10,00062,0001,24,000 hrs.Estimated direct labor hours

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Description: Exercise 2:Draw up a flexible budget for overhead expenses on the basis of the following data and deteminethe overhead rates at 70%, 80% and 90% plant capacity.At 80% CapacityOMR.Variable Overheads:Indirect labor12,0004,000Stores including sparesSem

The difference that arises between the flexible budget and actual results is termed flexible budget…

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Accounting

Draw up a flexible budget for overhead expenses on the basis of the following data and detemine the overhead rates at 70%, 80% and 90% plant capacity. At 80% Capacity OMR. Variable Overheads: Indirect labor Stores including spares Semi-variable Overheads: 12,000 4,000 Power (30% fixed, 70% variable) Repairs and maintenance (60% fixed, 40% variable) Fixed Overheads: Depreciation Insurance Salaries Total Overheads Estimated direct labor hours 20,000 2,000 11,000 3,000 10,000 62,000 1,24,000 hrs.

Draw up a flexible budget for overhead expenses on the basis of the following data and detemine the overhead rates at 70%, 80% and 90% plant capacity. At 80% Capacity OMR. Variable Overheads: Indirect labor Stores including spares Semi-variable Overheads: 12,000 4,000 Power (30% fixed, 70% variable) Repairs and maintenance (60% fixed, 40% variable) Fixed Overheads: Depreciation Insurance Salaries Total Overheads Estimated direct labor hours 20,000 2,000 11,000 3,000 10,000 62,000 1,24,000 hrs.

Managerial Accounting

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ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Exercise 2:
Draw up a flexible budget for overhead expenses on the basis of the following data and detemine
the overhead rates at 70%, 80% and 90% plant capacity.
At 80% Capacity
OMR.
Variable Overheads:
Indirect labor
12,000
4,000
Stores including spares
Semi-variable Overheads:
Power (30% fixed, 70% variable)
Repairs and maintenance (60% fixed, 40% variable)
20,000
2,000
Fixed Overheads:
Depreciation
Insurance
11,000
3,000
Salaries
Total Overheads
10,000
62,000
1,24,000 hrs.
Estimated direct labor hours

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Q1. Prepare a Flexible budget for overheads on the basis of the following data. Ascertain the overhead rates at 70% and 80% capacity. Variable Overheads (60% capacity) Indirect Material = Rs. 6,000 Labour Rs. 18,000 Semi-variable overheads: Electricity (40% fixed) = Rs. 40,000 Repairs (80% fixed) = Rs. 2,400 Fixed Overheads: Depreciation Rs. 16,500 = Insurance = Rs. 4,500 Salaries= Rs. 20,000 Estimated Labour Hours 15,000 hrs T A ہے
Q1. Prepare a Flexible budget for overheads on the basis of the following data. Ascertain the overhead rates at 70% and 80% capacity. Variable Overheads (60% capacity) Indirect Material = Rs. 6,000 Labour Rs. 18,000 Semi-variable overheads: Electricity (40% fixed) = Rs. 40,000 Repairs (80% fixed) = Rs. 2,400 Fixed Overheads: Depreciation Rs. 16,500 = Insurance = Rs. 4,500 Salaries= Rs. 20,000 Estimated Labour Hours 15,000 hrs = E
Gg.34.
Draw up a flexible budget for overheadexpenses on the basis of the following data and determine the overhead rates at 70%, 80% and 90% plant capacity. At 80% Capacity OMR. Variable Overheads: Indirect labor 12,000 Stores including spares 4,000 Semi-variable Overheads: Power (30% fixed, 70% variable) Repairs and maintenance (60% fixed, 40% variable) 20,000 2,000 Fixed Overheads: Depreciation 11,000 3,000 10,000 62,000 1,24,000 hrs. Insurance Salaries Total Overheads Estimated direct labor hours
answer in text form please (without image)
merica AS... arki Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Production (in units) Overhead Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Variable overhead Fixed overhead Total overhead Flexible Budget at 80% Capacity 53,250 1. Standard overhead rate 2. Standard overhead applied 3. Overhead variance $ 292,875 53,250 $ 346,125 Actual Results 49,200 $ 347,900 Saved Exercise 23-17 (Algo) Computing standard overhead rate and total overhead variance LO P4 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 26,625 DLH, computed as 53,250 units x 0.5 DLH per unit. 2. Compute the standard overhead applied. 3. Compute the total overhead variance. Note: Indicate the effect…
Required information [The following information applies to the questions displayed below.] Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Production (in units). Overhead. Variable overhead Fixed overhead Total overhead Flexible Budget at 80% Capacity 52,750 $ 290, 125 52,750 $ 342,875 Standard overhead rate 2. Standard overhead applied 3. Overhead variance Actual Results 48,400 $341,300 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 26,375 DLH, computed as 52,750 units x 0.5 DLH per unit. 2. Compute the standard overhead applied. 3. Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)
N1. Account
please answer correctly and explain in detail with computation, explanation, formula of numbers for both batrs step by step for better understanding thanks answer in text
hh. Subject :- Accounting
Subject - Acounting The following data relate to direct labor costs for the current period: Line Item Description Value Standard costs 7,500 hours at $11.80 Actual costs 6,300 hours at $10.70 The direct labor rate variance is a. $21,090 unfavorable b. $6,930 favorable c. $21,090 favorable d. $14,160 favorable
Assume the following: Estimated fixed manufacturing overhead for the coming period of $202,000 Estimated variable manufacturing overhead of $2.00 per direct labor hour Actual manufacturing overhead for the period of $320,000 Actual direct labor - hours worked of 54,000 hours Estimated direct labor - hours to be worked in the coming period of 55,000 hours. The amount of overhead applied to production during the period is closest to: Note: Round your intermediate value of "Predetermined overhead rate" to two decimal places