Geyer Company uses a standard cost system. For the month of April, total overhead is budgeted at $80,000 based on the production volume of 20,000 direct labour hours. At standard, each unit of finished product requires 2 direct labour hours. The following data are available for the April production activity: Equivalent units of product Direct labour hours worked Actual total overhead incurred 9,500 19,500 $79,500 What amount should Geyer credit to the manufacturing overhead allocated account for the month of April?

Geyer Company uses a standard cost system. For the month of April, total overhead is budgeted at $80,000 based on the production volume of 20,000 direct labour hours. At standard, each unit of finished product requires 2 direct labour hours. The following data are available for the April production activity: Equivalent units of product Direct labour hours worked Actual total overhead incurred 9,500 19,500 $79,500 What amount should Geyer credit to the manufacturing overhead allocated account for the month of April?

Name: Geyer Company uses a standard cost system. For the month of April, to
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Description: Geyer Company uses a standard cost system. For the month of April, total overheadis budgeted at $80,000 based on the production volume of 20,000 direct labour hours.At standard, each unit of finished product requires 2 direct labour hours. Thefollow

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 7PB: Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid...

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Geyer Company uses a standard cost system. For the month of April, total overhead
is budgeted at $80,000 based on the production volume of 20,000 direct labour hours.
At standard, each unit of finished product requires 2 direct labour hours. The
following data are available for the April production activity:
Equivalent units of product
Direct labour hours worked
Actual total overhead incurred
9,500
19,500
$79,500
What amount should Geyer credit to the manufacturing overhead allocated account for
the month of April?

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