egan, Incorporated uses the following standard costs per unit for one of its products: Direct labor (2.0 hours @ $5.00 per hour) = $10.00; overhead (2.0 hours @ $2.50 per hour) = $5.00. The flexible budget for overhead is $180,000 plus $1.00 per direct labor hour (DLH). Actual data for the past month show total overhead costs of $234,000, total fixed overhead of $140,000, 76,000 hours worked, and 60,000 units produced. The variable overhead spending variance for the past month for Megan, Incorporate

egan, Incorporated uses the following standard costs per unit for one of its products: Direct labor (2.0 hours @ $5.00 per hour) = $10.00; overhead (2.0 hours @ $2.50 per hour) = $5.00. The flexible budget for overhead is $180,000 plus $1.00 per direct labor hour (DLH). Actual data for the past month show total overhead costs of $234,000, total fixed overhead of $140,000, 76,000 hours worked, and 60,000 units produced. The variable overhead spending variance for the past month for Megan, Incorporate

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

Palladium Inc. produces a variety of household cleaning products. Palladium’s controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per DirectLabor Hour Maintenance $ 86,000 $0.20 Power 0.45 Indirect labor 140,000 2.10 Rent 35,000 Next year, Palladium expects production to require 90,000 direct labor hours. Required: Question Content Area 1. Prepare an overhead budget for the expected level of direct labor hours for the coming year. Palladium Inc.Overhead BudgetFor the Coming Year Variable costs: Rate per Hour Activity Level 90,000 Hours blank Maintenance $fill in the blank ddf6cc027003019_1 $fill in the blank ddf6cc027003019_2 blank Power fill in the blank ddf6cc027003019_3 fill in the blank ddf6cc027003019_4 blank Indirect labor fill in the blank ddf6cc027003019_5 fill in the blank…
A company produces and sells a single product, the standard unit costs details of which are the follows: Direct Material 2 kilos x N$4.5 per kilo Direct Labour 3 hours x N$5 per hour Variable Overhead 3 hours x N$3 per hour The total fixed overhead is budgeted at N$90,000 per month and is absorbed on a rate per unit basis. The budgeted output per month is 15,000 units. The product has a standard selling price of N$50 per unit. The following activity took place during January and February: January February Sales 14,000 units 16,000 units Production 16,000 units 14,500 units There is an opening stock on 1 January of 3,000 units. Required: (a) Calculate the standard cost and profit for one unit of output (b) Prepare profit statements for each month using (i) Marginal costing (ii) Absorption…
Eberley Corporation's cost formula for its manufacturing overhead is $25,700 per month plus $10 per machine-hour. For the month of July, the company planned for activity of 5,900 machine-hours, but the actual level of activity was 5,920 machine- hours. The actual manufacturing overhead for the month was $86,800. The spending variance for manufacturing overhead in July would be closest to: $2,100 U $1,900 F $1,900 U $2,100 F
Palladium Inc. produces a variety of household cleaning products. Palladium's controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per Direct Labor Hour Maintenance $86,000 $0.20 Power $0.45 Indirect Labor $140,000 $2.10 Rent $35,000 Next year, Palladium expects production to require 88,000 direct labor hours. Prepare an overhead budget for the expected level of direct labor hours for the coming year.
Reliable Industries has the following information about its standards and production activity for December: Actual manufacturing overhead cost incurred, $87,500 Variable manufacturing overhead cost @ $3.00 per unit produced Fixed manufacturing overhead cost @ $1.50 per unit produced ($19,500/13,000 budgeted units) Actual units produced, 6000 Assume the allocation base for fixed overhead costs is the number of units to be produced. How much are the standard overhead costs allocated to actual production? $87,500 $39,000 $27,000 $ 58, 500
Ravine Ltd determines the price of jobs using time and material pricing. Budgeted information relating to this accounting period is as follows: Labour rate, including on-costs 60 Annual labour hours 15,000 Annual overhead costs: Material handling and storage 151,680 Other overhead costs 546,000 Annual cost of materials used 1,264,000 Ravine Ltd adds a mark-up of $20 per hour on time charges, while no mark-up is added onto material costs. Required: Calculate the price for a job that requires 300 labour hours and $180,000 material cost. What would be the price of the job if Ravine Ltd also added a 10% mark-up on all material charges?
Cream Company is expected to utilize 3,000 machine hours with fixed manufacturing overhead budgeted at P1,410 and an estimated variable manufacturing overhead rate of P2.10 per hour. Actual production required 2,700 machine hours, with a total overhead of P7,800. What is the over or under applied manufacturing overhead? A P13,098 over applied B D P861 over applied P13,098 under applied P861 under applied
Sparrow Company produces one product, a putter called GO-Putter. It uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 120,000 units per year. The total budgeted overhead at normal capacity is 1,080,000 comprised of 360,000 of variable costs and 720,000 of fixed costs. The company applies overhead on the basis of direct labor hours. During the current year, it produced 76,600 putters, worked 98,400 direct labor hours, and incurred variable overhead costs of 143,395 and fixed overhead costs of 602,095. Required: 1.Predetermined Overhead Rate 2.Compute the applied overhead for the year. 3.Compute the total overhead variance.
SANOFI Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows: Indirect Labor $1 Indirect Materials $1 Utilities $0 Fixed Overhead Cost Per Month: Supervision $4.000 Depreciation $1.500 Property Taxes $800 In July 2021, SANOVI Company incurred the following manufacturing Overhead Cost: Variable Cost Fixed Cost Indirect Labor $8.700 Supervision $4.000 Indirect Materials $4.300 Depreciation $1.500 Utilities $3.200 Property Taxes $800 Instructions: (please shows the computation) Prepare a flexible budget performance report, assuming that the company worked 8.800 direct labor hours during the month. Prepare a flexible budget performance report, assuming that the company worked 8.500 direct labor hours during the month. Comment on…
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows: Indirect labor Indirect materials Utilities Activity Level Depreciation Fixed overhead costs per month are Supervision $3,600, Depreciation $1,300, and Property Taxes $800. The company believes it will normally operate in a range of 7,100-11,000 direct labor hours per month. Direct Labor Hours Fixed Costs $1.20 Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1,300 direct labor hours. (List variable costs before fixed costs.) Indirect Labor Indirect Materials Property Taxes Supervision 0.70 Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs 0.20 LA MYERS COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2020 LA tA tA
Novak Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows: Indirect labor: $1.10, Indirect materials: 0.80, Utilities 0.50. Fbed overhead costs per month are Supervision $4,000, Depreciation $1, 200, and Property Taxes $800. The company believes it will normally operate in a range of 7, 000-10,000 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2022 for the expected range of activity, using increments of 1, 000 direct labor hours. (List variable costs before fixed costs)
The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 10,200 9,200 12,200 Units to be produced 11,200 Each unit requires 0.25 direct labor-hours and direct laborers are paid $11.00 per hour. In addition, the variable manufacturing overhead rate is $1.60 per direct labor-hour. The fixed manufacturing overhead is $82,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $22,000 per quarter. Required: 1. Calculate the company's total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole. 2. and 3. Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole. Complete this question by entering your answers in the tabs below. Req 1…