Gerhan Company's flexible budget for the units manufactured in May shows $15,640 of total factory overhead; this output level represents 70% of availablecapacity. During May, the company applied overhead to production at the rate of $3.00 per direct labor hour (DLH), based on6,120 DLHS, which represents 90% of available capacity. The company worked 5,000 DLHS and incurred $16,500 of total factory overhead cost during May,10denominator volume level ofincluding $6,800 for fixed factory overhead.Under a three-variance breakdown (decomposition) of the total overhead variance, what is the total factory overhead spending variance (to the nearestwhole dollar) for May?eBookMultiple ChoiceN/A-this variance does not exist in a three-variance analysis of the total overhead variance.$300 favorable.$380 unfavorable. 10Multiple ChoiceN/A-this variance does not exist in a three-variance analysis of the total overhead variance.eBook$300 favorable.$380 unfavorable.$480 unfavorable.$1,160 unfavorable.

Answered: Gerhan Company's flexible budget for…

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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Pinnacle Corp. budgeted $218,050 of overhead cost for the current year. Actual overhead costs for the year were $207,500. Pinnacle's plantwide allocation base, machine hours, was budgeted at 53,300 hours. Actual machine hours were 46,460. A total of 91,830 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is: a.$2.26 per machine hour b.$4.09 per machine hour c.$3.89 per machine hour d.$2.37 per machine hour
In October, vole Company reports 20,700 actual direct labor hours, and it incurs $171,200 of manufacturing overhead costs. Standard hours allowed for the work done is 21,400 hours. The predetermined overhead rate is $8.25 per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $6.25 variable per direct labor hour and $50,000 fixed. Compute the overhead volume variance. Normal capacity was 25,000 direct labor hours. Overhead Volume Variance
The Davis Corporation budgeted factory overhead at $250,000 for the period for the Assembly Department based on a budgeted volume of 100,000 direct labor hours. At the end of the period, the factory overhead control account for the Assembly Department had a balance of $252,000. The actual (and allowed) direct labor hours were 103,000. What was the over- or underapplied factory overhead for the period?
In October, Blue Spruce Inc. reports 42,200 actual direct labor hours and incurs $198,000 of manufacturing overhead costs. Standard hours allowed for the month's production is 40,600 hours. Blue Spruce's predetermined overhead rate is $5.04 per direct labor hour. The flexible manufacturing overhead budget shows that budgeted costs are $3.80 variable per direct labor hour and $62,000 fixed. Compute the manufacturing overhead volume variance. Normal capacity was 50,000 direct labor hours. Identify whether the variance is favorable or unfavorable. Total manufacturing overhead volume variance $
Cholla Company’s standard fixed overhead rate is based on budgeted fixed manufacturing overhead of $10,800 and budgeted production of 36,000 units. Actual results for the month of October reveal that Cholla produced 31,000 units and spent $10,500 on fixed manufacturing overhead costs.
Botosan Factory has budgeted factory overhead for the year at $615,285, and budgeted direct labor hours for the year are 372,900. If the actual direct labor hours for the month of May are 339,300, the overhead allocated for May is a. $559,845 b. $576,640 c. $475,868 d. $677,412
The following data pertains to the month of October for Elm. Co. when production was budgeted to be 5,000 units of P90. P90 has standard costs per unit of: 3 lbs of Direct Materials at a cost of $7.00 per lb; .20 hours of Direct Labor at $18.00 per hour, and variable overhead assigned on the basis of 0.05 machine hours at a rate of $50 per machine hour. In October the productio of P90 was 4,600 units, using 15,100 lbs of material costing a total of $107,778. A.Determine the direct materials price variance. (negative numbers indicate a favorable variance)
The total factory overhead for Big Light Company is budgeted for the year at $448,060. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 10,900 units. Each night light requires 3 hours of direct labor. Desk lamps are budgeted for 9,700 units. Each desk lamp requires 2 hours of direct labor. a. Determine the total number of budgeted direct labor hours for the year. direct labor hours b. Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places. per direct labor hour c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places. Night lights $ per unit Desk lamps $ per unit
Over and Under, Inc. manufactures weaving looms. Before the period began, the company prepared the following manufacturing overhead budget for an expected activity level of 15,000 direct labor hours (DL hrs): Variable Manufacturing Overhead Costs $322,500 Fixed Manufacturing Overhead Costs $205,000 By the end of the period, the company noted that 3,000 fewer direct labor hours were logged than expected. The total actual manufacturing overhead costs incurred during the period was $545,000, of which, $325,000 was fixed. Which of the following statements is incorrect for the above data? A. The total volume variance can be calculated by multiplying the unit variable cost by the difference between the expected DL hrs and the actual DL hrs. B. The master budget variance related to fixed manufacturing overhead costs for the period equals $120,000. C. The volume variance for variable manufacturing overhead costs is favorable because fewer DL hrs were logged during production than expected. D.…

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