ebell Corporation has the following overhead budget for the month of October. Budgeted production Budgeted machine hours Budgeted direct labor hours Budgeted variable manufacturing overhead costs: Supplies Utilities 20.000 units. 6,000 machine hours 8,000 labor hours $24,000 $48,000 Budgeted fixed manufacturing overhead costs: Supervision Insurance $19.500 3,800 Depreciation $ 8,700 Blucbell employs a standard costing system and applies the variable overhead costs based on the standard machin hours and the fixed overhead the standard labor hours. At the end of October, the company finds its variable overhead and fixed overhead account under- or over-applied by the following amounts Actual production in October 24,000 units Variable overhead - 2,000 underapplied Fixed manufacturing overhead cost $ 3,000 overapplied 7 Determine the actual variable overhead cost per unit of the product(round to the nearest cent): A S3.68 per unit B. $3.60 per unit C. $3.00 per unit D. S3.52 per unit 24000 Actual att 4000 Ad ett 20,000 St Qtt 3.68 3 G0 St Pa 12/ hour St Pice Achual Pri a E. Not determinable. 86,400 O.3 hours 88,400 72,000 G,000 3.60 unut Determine fixed manufacturing overhead budget (spending) variance: 8 3,400 favorable 3,400 unfavorable 6,400 favorable 6,400 unfavorable Actual att40 Aed tt B. S stQtt C. S Actral Pae 24000 D. S Stpre E. Not determinable. 24,000 4 heur 0.4hours 3a, 000 3/000 0e 32,400 35,Ho0 3,400 u =4hour 20.4hours = 1.60 pmint
ebell Corporation has the following overhead budget for the month of October. Budgeted production Budgeted machine hours Budgeted direct labor hours Budgeted variable manufacturing overhead costs: Supplies Utilities 20.000 units. 6,000 machine hours 8,000 labor hours $24,000 $48,000 Budgeted fixed manufacturing overhead costs: Supervision Insurance $19.500 3,800 Depreciation $ 8,700 Blucbell employs a standard costing system and applies the variable overhead costs based on the standard machin hours and the fixed overhead the standard labor hours. At the end of October, the company finds its variable overhead and fixed overhead account under- or over-applied by the following amounts Actual production in October 24,000 units Variable overhead - 2,000 underapplied Fixed manufacturing overhead cost $ 3,000 overapplied 7 Determine the actual variable overhead cost per unit of the product(round to the nearest cent): A S3.68 per unit B. $3.60 per unit C. $3.00 per unit D. S3.52 per unit 24000 Actual att 4000 Ad ett 20,000 St Qtt 3.68 3 G0 St Pa 12/ hour St Pice Achual Pri a E. Not determinable. 86,400 O.3 hours 88,400 72,000 G,000 3.60 unut Determine fixed manufacturing overhead budget (spending) variance: 8 3,400 favorable 3,400 unfavorable 6,400 favorable 6,400 unfavorable Actual att40 Aed tt B. S stQtt C. S Actral Pae 24000 D. S Stpre E. Not determinable. 24,000 4 heur 0.4hours 3a, 000 3/000 0e 32,400 35,Ho0 3,400 u =4hour 20.4hours = 1.60 pmint
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ebell Corporation has the following overhead budget for the month of October.
Budgeted production
Budgeted machine hours
Budgeted direct labor hours
Budgeted variable manufacturing overhead costs:
Supplies
Utilities
20.000 units.
6,000 machine hours
8,000 labor hours
$24,000
$48,000
Budgeted fixed manufacturing overhead costs:
Supervision
Insurance
$19.500
3,800
Depreciation
$ 8,700
Blucbell employs a standard costing system and applies the variable overhead costs based on the standard machin
hours and the fixed overhead the standard labor hours. At the end of October, the company finds its variable
overhead and fixed overhead account under- or over-applied by the following amounts
Actual production in October
24,000 units
Variable overhead -
2,000 underapplied
Fixed manufacturing overhead cost
$
3,000 overapplied
7 Determine the actual variable overhead cost per unit of the product(round to the nearest cent):
A S3.68 per unit
B. $3.60 per unit
C. $3.00 per unit
D. S3.52 per unit
24000
Actual att 4000 Ad ett
20,000
St Qtt
3.68
3 G0 St Pa
12/ hour
St Pice
Achual Pri a
E. Not determinable.
86,400
O.3 hours
88,400
72,000
G,000
3.60 unut
Determine fixed manufacturing overhead budget (spending) variance:
8
3,400 favorable
3,400 unfavorable
6,400 favorable
6,400 unfavorable
Actual att40 Aed tt
B. S
stQtt
C. S
Actral Pae
24000
D. S
Stpre
E. Not determinable.
24,000
4 heur
0.4hours
3a, 000
3/000 0e
32,400
35,Ho0
3,400 u
=4hour 20.4hours
= 1.60 pmint
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