i Determine the following graphically for: a Actual cost per pound of raw materials h Actual number of pounds used up rounded to the nearest whole c. Standard number of pounds allowed the actual production pound A stual labor roto
i Determine the following graphically for: a Actual cost per pound of raw materials h Actual number of pounds used up rounded to the nearest whole c. Standard number of pounds allowed the actual production pound A stual labor roto
i Determine the following graphically for: a Actual cost per pound of raw materials h Actual number of pounds used up rounded to the nearest whole c. Standard number of pounds allowed the actual production pound A stual labor roto
Please help me to answer the "skeleton of visual aids & the flexible overhead budget. Thank you
Transcribed Image Text:1. Determine the following graphically for:
REQUIRED:
. Determine the following graphically for:
. Actual cost per pound of raw materials
h Actual number of pounds used up rounded to the nearest whole pound
e Standard number of pounds allowed the actual production
d. Actual labor rate per hour
e. Actual number of hours used up
f Standard number of hours allowed the actual production
o. Actual number of units produced (double-check)
h. Normal production in units and hours
i. Actual fixed overhead
i. Actual variable overhead
Note: Start with the skeletons of the visual aids & the flexible overhead budget
Transcribed Image Text:Flexible budgets are determined and all overhead cost items are assigned on the basis
Exercise 6-17
Reliance, Inc. utilizes a standard cost system for budget and control purposes.
Flexible budgets are determined and all overhead cost items are assigned on the basis
of standard direct labor hours.
The following standard cost per finished unit was determined on the basis of a
projected monthly normal production for 2020:
Direct materials (3 pounds @ P6.00)
Direct labor (0.30 hour @P40.00)
Variable overhead (0.30 hour @P10)
Fixed overhead ().30 hour @ P6-2/3)
P18.00
12.00
3.00
2.00
Total
P35.00
You have just received the condensed performance report for the month of
Sept., 2020.
VARIANCE ANALYSIS
Quantity Capacity
or time or
Standard
Price or
Сaрacity
Costs
Rate
Efficiency
P6,000 U
1,200 U
Variances
Direct materials used
Direct labor costs
Variable overhead
Fixed overhead
Applied
P162,000
108,000
27,000
18,000
P14,000 F
*18,200 U
5,250 U
300 U
P4,000** U
1,500 U
*Includes labor joint variance.
Includes overhead capacity variance & fixed overhead efficiency variance
Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.
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