All estimated costs are based on labor hours. How much is the factory overhead variance? Fo The following information is available for the year 2030:Factory Overhead Control accountActual labor hoursEstimated labor hoursEstimated CostsVariable50.1,551,500296,000320,000720,000Fixed:Factory rentDepreciation - office equipmentAdvertisingOffice Rent860,00048,00010,000368,000140,00012,00010,000i 2,000Depreciation - factory equipmentSalary - office secretarySalary - factory guardFactory InsuranceAll estimated costs are based on labor hours. How much is the factoryoverhead variance?a. 50,600 overb. 455,750 overc. 435,400 overd. 73,888 under

Name: All estimated costs are based on labor hours. How much is the factory
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Description: All estimated costs are based on labor hours. How much is the factory overhead variance? Fo The following information is available for the year 2030:Factory Overhead Control accountActual labor hoursEstimated labor hoursEstimated CostsVariable50.1,55

Total Estimated Costs: Variable - 7,20,000…

Answered: Factory Actual labor hours Estimated…

Business

Accounting

Factory Actual labor hours Estimated labor hours Estimated Costs

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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Manufacturing Overhead Variance is: O a. A product cost and is expensed when the jobs are sent to customers O b. A product cost and is expensed in the period incurred O c. A period cost and is expensed when the jobs are sent to customers O d. A period cost and is expensed in the period incurred
What does a manufacturing overhead budget tell us?
Determine difference between the three methods used for allocating factory overhead costs to products.
What is a key difference between variable costing and absorption costing? a. The usage of homogenous cost pools. b. The classification of fixed factory overhead. c. classification of direct materials and labor. d. The choice of allocation base.
If a company uses predetermined rate for absorption of manufacturing overhead, the volume variance is O The under- or over-applied fixed cost element of overhead. O The difference between budgeted cost and actual cost of variable overhead items. O The difference between budgeted cost and actual cost of fixed overhead items. O The under- or over-applied variable cost element of overhead.
The direct labor rate variance is calculated by multiplying the standard hours that should have been worked for the actual output by the difference between the standard labor rate and the actual labor rate. O True O False
Which of the following is a resource constraint? 1. machine hours available 2. sales commissions 3. cost per unit 4. budgeted overhead
Which of the following statements Is true? Multiple Choice The material quantity variance is recorded when overhead is applied to production. The material price and the material quantity variances are recorded at the same time., The materials quantity variance is recorded when materials are used in production. The materials quantity variance is recorded when materials are purchased.
Manufacturing overhead is what is left after subtracting direct labor and direct material from total manufacturing costs. True or False True False
The following direct materials and direct labor data pertain to the operations of Sandhill Company for the month of August. Costs Actual labor rate Actual materials price Standard labor rate Standard materials price $13 $120 $12.50 $124 Quantities per hour per ton per hour per ton Actual hours incurred and used Actual quantity of materials purchased and used Standard hours used Standard quantity of materials used 4,900 hours 2,000 tons 4,960 hours 1,990 tons
Why are overhead costs allocated to products and not traced to products as direct materials and direct labor are?
Total manufacturing costs are composed of the following, except: * a. Direct Materials b. Labor union c. Direct Labor d. Factory Overhead