Exercise 10A-5 (Algo) Using Fixed Overhead Variances [LO10-4] The standard cost card for the single product manufactured by Cutter, Incorporated, is given below: Inputs Direct materials Direct labor Variable overhead Fixed overhead Total standard cost per unit (1) Standard Quantity or Hours 3.6 yards 0.7 hours 0.7 hours 0.7 hours (2) Standard Price or Rate $ 3.00 per yard $ 16.00 per hour $2.00 per hour $5.00 per hour Standard Cost (1) x (2) $ 10.80 11.20 1.40 3.50 $ 26.90 Manufacturing overhead is applied to production based on standard direct labor-hours. During the year, the company worked 8,460 hours and manufactured 11,800 units. Selected data relating to the company's fixed manufacturing overhead cost for the year are shown below: Actual Fixed Overhead = $40,000 Budgeted Fixed Overhead = ? Fixed Overhead Applied to Work in Process = ? hours × $? per hour = $? Budget variance = $? Volume variance = $3,300 F Required: 1. What were the standard hours allowed for the year's production? 2. What was the amount of budgeted fixed overhead cost? 3. What was the fixed overhead budget variance? Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.
Exercise 10A-5 (Algo) Using Fixed Overhead Variances [LO10-4] The standard cost card for the single product manufactured by Cutter, Incorporated, is given below: Inputs Direct materials Direct labor Variable overhead Fixed overhead Total standard cost per unit (1) Standard Quantity or Hours 3.6 yards 0.7 hours 0.7 hours 0.7 hours (2) Standard Price or Rate $ 3.00 per yard $ 16.00 per hour $2.00 per hour $5.00 per hour Standard Cost (1) x (2) $ 10.80 11.20 1.40 3.50 $ 26.90 Manufacturing overhead is applied to production based on standard direct labor-hours. During the year, the company worked 8,460 hours and manufactured 11,800 units. Selected data relating to the company's fixed manufacturing overhead cost for the year are shown below: Actual Fixed Overhead = $40,000 Budgeted Fixed Overhead = ? Fixed Overhead Applied to Work in Process = ? hours × $? per hour = $? Budget variance = $? Volume variance = $3,300 F Required: 1. What were the standard hours allowed for the year's production? 2. What was the amount of budgeted fixed overhead cost? 3. What was the fixed overhead budget variance? Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 10A-5 (Algo) Using Fixed Overhead Variances [LO10-4]
The standard cost card for the single product manufactured by Cutter, Incorporated, is given below:
Inputs
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total standard cost per unit
(1) Standard
Quantity or
Hours
3.6 yards
0.7 hours
0.7 hours
0.7 hours
(2) Standard Price
or Rate
$ 3.00 per yard
$ 16.00 per hour
$2.00 per hour
$5.00 per hour
Standard
Cost (1) x
(2)
$ 10.80
11.20
1.40
3.50
$ 26.90
Manufacturing overhead is applied to production based on standard direct labor-hours. During the year, the company worked 8,460
hours and manufactured 11,800 units. Selected data relating to the company's fixed manufacturing overhead cost for the year are
shown below:
Actual Fixed Overhead = $40,000
Budgeted Fixed Overhead = ?
Fixed Overhead Applied to Work in Process = ? hours × $? per hour = $?
Budget variance = $?
Volume variance = $3,300 F
Required:
1. What were the standard hours allowed for the year's production?
2. What was the amount of budgeted fixed overhead cost?
3. What was the fixed overhead budget variance?
Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero
variance). Input all amounts as positive values.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbbdd9f10-5817-414d-9803-e72efcc21dfb%2F21208315-4e53-4287-a9cb-bb2f12dcedfe%2Fmqkwqveo_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 10A-5 (Algo) Using Fixed Overhead Variances [LO10-4]
The standard cost card for the single product manufactured by Cutter, Incorporated, is given below:
Inputs
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total standard cost per unit
(1) Standard
Quantity or
Hours
3.6 yards
0.7 hours
0.7 hours
0.7 hours
(2) Standard Price
or Rate
$ 3.00 per yard
$ 16.00 per hour
$2.00 per hour
$5.00 per hour
Standard
Cost (1) x
(2)
$ 10.80
11.20
1.40
3.50
$ 26.90
Manufacturing overhead is applied to production based on standard direct labor-hours. During the year, the company worked 8,460
hours and manufactured 11,800 units. Selected data relating to the company's fixed manufacturing overhead cost for the year are
shown below:
Actual Fixed Overhead = $40,000
Budgeted Fixed Overhead = ?
Fixed Overhead Applied to Work in Process = ? hours × $? per hour = $?
Budget variance = $?
Volume variance = $3,300 F
Required:
1. What were the standard hours allowed for the year's production?
2. What was the amount of budgeted fixed overhead cost?
3. What was the fixed overhead budget variance?
Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero
variance). Input all amounts as positive values.
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