Happy Valley Pet Products uses a standard costing system that applies overhead to products based on standard direct labour-hours allowed for actual output of the period. During the recent year, the following data were collected: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted standard direct labour-hours Actual direct labour-hours Standard direct labour-hours allowed for the actual output $69,460 $66,860 15,100 16,300 13,600 Required. 1. Compute the fixed portion of the predetermined overhead rate for the year. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH 2. Compute the fixed overhead budget and volume variances. (Indicate the effect of each varlance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (I.e., zero varlance).) Fixed overhead budget variance Fixed overhead volume variance

Happy Valley Pet Products uses a standard costing system that applies overhead to products based on standard direct labour-hours allowed for actual output of the period. During the recent year, the following data were collected: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted standard direct labour-hours Actual direct labour-hours Standard direct labour-hours allowed for the actual output $69,460 $66,860 15,100 16,300 13,600 Required. 1. Compute the fixed portion of the predetermined overhead rate for the year. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH 2. Compute the fixed overhead budget and volume variances. (Indicate the effect of each varlance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (I.e., zero varlance).) Fixed overhead budget variance Fixed overhead volume variance

Name: Happy Valley Pet Products uses a standard costing system that applies
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Happy Valley Pet Products uses a standard costing system that applies overhead to products based on standard direct labour-hoursallowed for actual output of the period. During the recent year, the following data were collected:Total budgeted fixed o

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Required information [The following information applies to the questions displayed below.] Adria Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools: Expected Activity Overhead Expected Activity 6,500 DLHS 2,400 orders 700 receipts 1,400 relays 41,000 MHs Activity Cost Pool Labor-related Purchase orders Measure Cost $ 58,500 $ 12,000 $ 11, 200 $ 14,000 $369, 000 Direct labor-hours Material receipts Relay assembly General factory Number of orders Number of receipts Number of relays Machine-hours Required: 1. Compute the activity rate for each of the activity cost pools. Activity Cost Pool Activity Rate Labor-related per DLH Purchase orders per order Material receipts per receipt Relay assembly per relay General factory per MH
Solve all questions
Holman Medical Supplies uses an ABC method of allocating overhead costs. Using their predetermined overhead rates per activity, they applied a total of overhead costs of $216,000. At the end of the year, they actual overhead costs was determined to be $210,000. The overhead variance is determined to be immaterial. The unadjusted cost of goods sold balance is $350,000. What is the adjusted cost of goods sold balance?
Subject: acounting
Blueberry Corp. uses a job order costing system with manufacturing overhead applied to products on the basis of machine hours. For the upcoming year, Blueberry Corp. estimated total manufacturing overhead cost at $225,000 and total machine hours of 45,000. During the year actual manufacturing overhead incurred was $258,750 and 47,600 machine hours were used. i. Calculate the predetermined overhead rate. ii. Calculate how much manufacturing overhead will be applied to production. ii. Is overhead over- or underapplied? By how much? iv. What account should be adjusted for over- or underapplied overhead? Should the balance be increased or decreased? Edit Format Table 12pt v Paragraph v BIUA ev T?v 1. $225,000/ 45000 = $5 Per Machine Hour 2.47600 x $5 = $238,000 I. 20 words 3. 4.
Fast Company has established the following overhead cost pools and cost drivers for the month of May:
Tracey Packaged Snax reports the following information for November: Units produced and sold Per unit revenue and costs: Sales revenue Direct materials costs Direct labor costs Variable manufacturing overhead Fixed manufacturing overhead (at 320,000 units) Variable marketing and administrative costs Fixed marketing and administrative costs (at 320,000 units) Required: a. Prepare a gross margin income statement. b. Prepare a contribution margin income statement. Complete this question by entering your ansivers in the tabs below. Required A Required B Prepare a contribution margin income statement. Contribution Margin Income Statement 320,000 $9.60 1.65 0.90 0.80 1.55 0.75 1.15
K Dakota Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Dakota allocates manufacturing overhead costs using direct manufacturing labor costs. Dakota provides the following information (Click the icon to view the information.) Read the requirements Requirement 1. Compute the actual and budgeted manufacturing overhead rates for 2020 (Enter your answer as a number [not as a percentage] rounded to two decimal places, XXX) Actual manufacturing overhead rate = 1.95 Budgeted manufacturing overhead rate 1.7 = Requirements BES 4 1. Compute the actual and budgeted manufacturing overhead rates for 2020 2. During March, the job-cost record for Job 626 contained the following information Direct materials used $55,000 Direct manufacturing labor costs $45,000 Compute the cost of Job 626 using (a) actual costing and (b) normal costing 3. At the end of 2020, compute the under- or…
Tracey Packaged Snax reports the following information for November: Units produced and sold Per unit revenue and costs: Sales revenue Direct materials costs Direct labor costs Variable manufacturing overhead Fixed manufacturing overhead (at 320,000 units) Variable marketing and administrative costs Fixed marketing and administrative costs (at 320,000 units) Required: a. Prepare a gross margin income statement. b. Prepare a contribution margin income statement. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a gross margin income statement. Sales revenue Gross margin Gross Margin Income Statement Fixed marketing and administrative costs Operating profit $ 1,152,000 (176,000) 320,000 $ 3.60 1.05 0.30 0.20 0.95 0.15 0.55
The Crater Company uses predetermined overhead rates to allocate manufacturing overhead to products. The predetermined overhead rate is based on labor cost in Dept. A and machine-hours in Dept. B. At the beginning of the year, the company made the following estimates: Dept A Dept B Direct labor cost $ 83,000 $ 60,000 Manufacturing overhead $ 190,900 $ 117,300 Direct labor-hours 9,800 11,800 Machine-hours 4,800 13,800 What predetermined overhead rates would be used in Dept A and Dept B, respectively? Multiple Choice 116.72% and $9.30. 125% and $22.00. 230% and $8.50. 230% and $9.30.
Harrison Company makes two products and uses a traditional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced. Rascon. $ 11.00 $ 2.80 0.50 10,000 These products are customized to some degree for specific customers. Required: 1. The company's manufacturing overhead costs for the year are expected to be $606,100. Using the company's traditional costing system, compute the unit product costs for the two products. 2. Management is considering an activity-based absorption costing system in which half of the overhead would continue to be allocated based on direct labor-hours and half would be allocated based on engineering design time. This time is expected to be distributed as follows during the upcoming year: Parcel Engineering design time (in hours) 4,500 Compute…
Larned Company makes a storage box using metal. The company uses a standard costing system. Variable overhead is allocated on the basis of direct material usage (pounds). Overhead is allocated to units based on expected production of 15,200 units. Larned maintains a materials inventory, so the amount of material used is not necessarily the same as the amount of material purchased in any one month. The standard cost sheet for a single box follows: Direct material Direct labor Variable overhead Fixed overhead 0.5 pound @ $8 0.2 hours @ $30 0.5 pound @ $4 $ 4.00 6.00 2.00 3.00 $ 15.00 March financial results show that the average purchase price of metal was $9.05 per pound. The purchase price variance was $1,710 The variable overhead efficiency variance was $1,370 favorable. Good output produced totaled 13,700 units. Required: a. How many pounds of metal were purchased in March? b. What was the direct materials efficiency variance in March? Note: Indicate the effect of this variance by…