HL Company employs standard absorption system for product costing. The standard cost of this product is as follows: Raw Materials - P14.50 Direct labor for 2 hours @ P8/hr is P16 Manufacturing overhead for 2hours @ P11/hr is P22. The total cost/unit (14.50+16+22) = P52.50. The manufacturing overhead rate is based upon normal annual activity level of 600,000 direct labor hours. The company planned to produce 25,000 units each month during 2020. Budgeted factory overhead for 2020 is composed of P3,600,000 variable and P3,000,000 fixed. During April 2021, 26,000 units of product were produced using 53,500 direct labor hours at a cost of P433,350. Actual manufacturing overhead for the month was P260,000 fixed and P315,000 variable. The total manufacturing overhead applied during April was P572,000. The fixed overhead volume variance must be? The total variance related to efficiency of production operations must be?

Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…

A: In the traditional cost method, the manufacturing overhead cost is distributed on the basis of…

Q: Total Direct Direct Labor- Hours Labor-Hours Expected Production Per Unit Product H2 130 6.3 819…

A: OAR stands for Overhead absorption rate refers to the rate which is charged to the cost unit that is…

Q: Kunkel Company makes two products and uses a conventional costing system in which a single plantwide…

A: Conventional overhead allocation system distributes overhead costs based on a single allocation…

Q: [The following information applies to the questions displayed below.] Antuan Company set the…

A: Labor Variance -An actual labor activity cost that deviates from the projected amount, whether for…

Q: Jungman Incorporated has provided the following data concerning one of the products in its standard…

A: The standard cost of one unit of the product consists of the following costs:Direct materials…

Q: MARITES Company employs standard absorption system for product costing. The standard cost of this…

A: Standard Variable overhead rate per hour = Budgeted variable overhead / Budgeted direct labor hours…

Q: Pasternik Company produces and sells two products, Alpha and Zeta. The following information is…

A: Activity-based costing is used to allocate overhead expenses on the basis of activity. Other than…

Q: Kunkel Company makes two products and uses a conventional costing system in which a single plantwide…

A: Plantwide Overhead Rate:— This is the rate used to allocate manufacturing overhead costs to the…

Q: XYZ Company provided the following information regarding Product XY: Direct material costs OMR3 per…

A: Calculating Cost of a job for 550 units of XY, which uses a total of 150 Direct Labor hours. Given…

Q: Boswell Company manufactures two products, Regular and Supreme. Boswell’s overhead costs consist of…

A: Using traditional costing, the total overhead cost is divided using the direct labor hours. In…

Q: Original company manufactures two models of juice, Big model and Small model. The Following activity…

A: Given information is: Total overhead costs = $80,000 Basis of overhead allocation = direct labour…

Q: Kunkel Company makes two products and uses a conventional costing system in which a single plantwide…

A: Plantwide Overhead Rate:— It is the rate used to allocate manufacturing overhead costs to cost…

Q: Waterway Co. computed an activity-based overhead rate for machining costs ($600000) of $5 per…

A: Under Activity Based Costing, costs are allocated to products based on activity consumed by them in…

Q: Overhead applied to Supreme using activity-based costing is $3638000. $2040000. $1462000. $3060000.

A: Machining overhead is allocated based on the Machine hours. Assembling overhead is allocated based…

Q: With a volume-based costing system that applies overhead based on direct labor hours, the setup cost…

A: A volume based costing system of allocation of costs is the method in which first of all the…

Q: Jojo Company employs standard absobrtion system for product costing. The standard cost of this…

A: Standard Variable overhead rate per hour = Budgeted variable overhead / Budgeted direct labor hours…

Q: World Inc. has provided the following data concerning one of the products in its standard cost…

A: Lets understand the basics. Management sets standard cost to produce goods or services so as to…

Q: HP Company employs standard absorption system for product costing. The standard cost of this product…

A: Variance: A variance reflects the degree by which the actual results vary from the anticipated or…

Q: abor hours 10000 15000 Machine hours 10000 30000 Number of parts 90000 160000 Overhead applied to…

A: Predetermined overhead Rate =Total overhead cost/ Total Direct labor hours…

Q: Stargate Corporation has established the following standards for the costs of one unit of its…

A: Standard costing: Under this costing method, the expected costs are used in the accounting records…

Q: The Jaguar Company, which manufactures electrical switches, uses a standard costing system and…

A: Variable overhead variances are computed as spending variances, efficiency variances, and…

Q: t labor-hours per unit er of units produced 0.20 4,000 products are customized to some degree for…

A: Under the conventional system, a signle plant wide rate is applied to all products. In ABC system,…

Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…

A: Cost allocation is a process of assigning or allocating indirect cost to each and every unit using a…

Q: Henry Company has established the following standards for the costs of one unit of its product. The…

A: Variance analysis refers to the difference between the actual and standard performance. When actual…

Q: Sheddon Industries produces two products. The products' identified costs are as follows: Product B $…

A: Cost per Unit - Cost per Unit is the cost incurred by the company on the single product produced. It…

Q: A company makes two products—Product A and B. Data regarding the two products follow: Direct…

A: Activity based costing is one of the costing method which is used for allocation of indirect or…

Q: Kunkel Company makes two products and uses a conventional costing system in which a single plantwide…

A: ACTIVITY BASED COSTINGActivity Based Costing is a Powerful tool for measuring…

Q: Integrity Company uses standard costing for each specialized product. The following information is…

A:

Q: Godiva company has two products, A and B. The company uses activity-based costing to allocate…

A: Activity rate (allocation rate) for Activity 2 = Total overhead cost for the activity 2 / Total no.…

Q: Cool Pool has these costs associated with production of 21,916 units of accessory products: direct…

A: calculation of cost per unit under absorption method are as follows

Q: A company uses activity-based costing. The company makes two products: A and B. The annual…

A: Product margin refers to the difference between sales value and cost of goods sold. It is also known…

Q: ABC company manufactures rivets in an automated factory. The company uses standard costing system to…

A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…

Q: Deoro Company has identified the following overhead activities, costs, and activity drivers for the…

A: Activity costing is the method of determining the costs of overhead on the basis of the appropriate…

Q: Calculate the material, labour, and variable overheads variances for April 2020.

A: Variance analysis is the analytical tool that helps to determine the difference between the actual…

Q: A company makes two products—Product A and B. Data regarding the two products follow:   Direct…

A: Step 1: Calculate the overhead cost per activity driver.Machine setups: $100,000 divided by 400…

Q: Stargate Corporation has established the following standards for the costs of one unit of its…

A: Standard costing is a technique which establishes predetermined estimates of the costs of products…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.