Glavine & Company produces a single product, each unit of which requires three direct lapor nours (DLHS). Practical capacity (Tor setting the factory overhead application rate) is 44,000 DLHs, on an annual basis. The information below pertains to the most recent year: Standard direct labor hours (DLHS) per unit produced Practical capacity, in DLHS (per year) Variable overhead efficiency variance Actual production for the year Budgeted fixed manufacturing overhead Standard direct labor wage rate Total overhead cost variance for the year Direct labor efficiency variance 1. Actual number of direct labor hours 2. Standard variable overhead rate 3. Total standard overhead rate 4. Total actual overhead cost 5. Fixed overhead production volume variance 6. Total overhead spending variance 3.00 44,000 $ 12,000 unfavorable (U) 13,000 units $ 880,000 Required: 1. What was the actual number of direct labor hours (DLHS) worked during the year? 2. What was the standard variable overhead rate per DLH during the year? 3. What was the total overhead application rate per direct labor hour (DLH) during the year? 4. What was the total actual overhead cost incurred during the year? 5. What was the Production Volume Variance for the year? Was this variance favorable (F) or unfavorable (U)? 6. What was the total Overhead Spending Variance for the year? Was this variance favorable (F) or unfavorable (U)? DLHs per DLH per DLH $20.00 per DLH $ 120,000 favorable (F) $ 24,000 unfavorable (U)
Glavine & Company produces a single product, each unit of which requires three direct lapor nours (DLHS). Practical capacity (Tor setting the factory overhead application rate) is 44,000 DLHs, on an annual basis. The information below pertains to the most recent year: Standard direct labor hours (DLHS) per unit produced Practical capacity, in DLHS (per year) Variable overhead efficiency variance Actual production for the year Budgeted fixed manufacturing overhead Standard direct labor wage rate Total overhead cost variance for the year Direct labor efficiency variance 1. Actual number of direct labor hours 2. Standard variable overhead rate 3. Total standard overhead rate 4. Total actual overhead cost 5. Fixed overhead production volume variance 6. Total overhead spending variance 3.00 44,000 $ 12,000 unfavorable (U) 13,000 units $ 880,000 Required: 1. What was the actual number of direct labor hours (DLHS) worked during the year? 2. What was the standard variable overhead rate per DLH during the year? 3. What was the total overhead application rate per direct labor hour (DLH) during the year? 4. What was the total actual overhead cost incurred during the year? 5. What was the Production Volume Variance for the year? Was this variance favorable (F) or unfavorable (U)? 6. What was the total Overhead Spending Variance for the year? Was this variance favorable (F) or unfavorable (U)? DLHs per DLH per DLH $20.00 per DLH $ 120,000 favorable (F) $ 24,000 unfavorable (U)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
G
Transcribed Image Text:Glavine & Company produces a single product, each unit of which requires three direct lapor nours (DLHS). Practical capacity (Tor
setting the factory overhead application rate) is 44,000 DLHs, on an annual basis. The information below pertains to the most recent
year:
Standard direct labor hours (DLHs) per unit produced
Practical capacity, in DLHS (per year)
Variable overhead efficiency variance
Actual production for the year
Budgeted fixed manufacturing overhead
Standard direct labor wage rate
Total overhead cost variance for the year
Direct labor efficiency variance
1. Actual number of direct labor hours
2. Standard variable overhead rate
3. Total standard overhead rate
4. Total actual overhead cost
5. Fixed overhead production volume variance
6. Total overhead spending variance
3.00
44,000
$ 12,000 unfavorable (U)
13,000 units
$ 880,000
Required:
1. What was the actual number of direct labor hours (DLHs) worked during the year?
2. What was the standard variable overhead rate per DLH during the year?
3. What was the total overhead application rate per direct labor hour (DLH) during the year?
4. What was the total actual overhead cost incurred during the year?
5. What was the Production Volume Variance for the year? Was this variance favorable (F) or unfavorable (U)?
6. What was the total Overhead Spending Variance for the year? Was this variance favorable (F) or unfavorable (U)?
DLHs
per DLH
per DLH
$20.00 per DLH
$ 120,000 favorable (F)
$ 24,000 unfavorable (U)
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VIEWStep 3: Calculation of standard overhead rate
VIEWStep 4: Computation of total overhead cost
VIEWStep 5: Determination of fixed overhead production volume variance
VIEWStep 6: Computation of total overhead spending variance
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