In October, vole Company reports 20,700 actual direct labor hours, and it incurs $171,200 of manufacturing overhead costs.Standard hours allowed for the work done is 21,400 hours. The predetermined overhead rate is $8.25 per direct labor hour. Inaddition, the flexible manufacturing overhead budget shows that budgeted costs are $6.25 variable per direct labor hour and $50,000fixed.Compute the overhead volume variance. Normal capacity was 25,000 direct labor hours.Overhead Volume Variance

Given: Variable Overhead Rate per Hour=$6.25Actual Direct Labor Hours= 20,700 hoursActual Overhead…

Answered: In October, vole Company reports 20,700…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In October, Blue Spruce Inc. reports 42,200 actual direct labor hours and incurs $198,000 of manufacturing overhead costs. Standard hours allowed for the month's production is 40,600 hours. Blue Spruce's predetermined overhead rate is $5.04 per direct labor hour. The flexible manufacturing overhead budget shows that budgeted costs are $3.80 variable per direct labor hour and $62,000 fixed. Compute the manufacturing overhead volume variance. Normal capacity was 50,000 direct labor hours. Identify whether the variance is favorable or unfavorable. Total manufacturing overhead volume variance $
Norman is calculating the company's total overhead variance for April. He knows the company paid $14,280 in overhead costs and that the production department produced 3,600 units for a total of 4,800 hours. He also knows that the company has a predetermined overhead rate of $3.00 per labor hour. What else does Norman need to know to complete his calculation? A Overhead fixed costs. B Budgeted overhead costs. C Standard hours allowed. D Overhead variable costs.
Kenmore Fabrication estimated that direct labor cost for the year would be $654,400. The company also estimated that fixed overhead would be $490,800 and variable overhead would be 35 percent of direct labor cost. Kenmore applies its overhead on the basis of direct labor cost. During the year, all fixed overhead costs were exactly as planned ($490,800) and variable overhead was also incurred as expected. There was $32,700 in underapplied overhead. Required: How much did Kenmore spend on direct labor cost during the period? Actual direct labor cost
Sheffield Company's standard materials cost per unit of output is $8.20 (2.00 pounds x $4.10). During July, the company purchases and uses 2,700 pounds of materials costing $14,580 in making 1,500 units of finished product. Compute the total, price, and quantity materials variances. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 52.) Total materials variance $ Materials price variance Materials quantity variance $ %24 %24
Simba Company's standard materials cost per unit of output is $9.00 (2.00 pounds x $4.50). During July, the company purchases and uses 3,080 pounds of materials costing $16,632 in making 1,400 units of finished product. Compute the total, price, and quantity materials variances. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 52.) Total materials variance $ Materials price variance $ Materials quantity variance $ %24 %24
Sheffield Company's standard labor cost per unit of output is $22.00 (2.00 hours x $11 per hour). During August, the company incurs 2,340 hours of direct labor at an hourly cost of $9.90 per hour in making 1,300 units of finished product. Compute the total, price, and quantity labor variances. (Round answers to 2 decimal places, e.g. 52.75.) Total labor variance Labor price variance $ $ Labor quantity variance $
The following data pertains to the month of October for Elm. Co. when production was budgeted to be 5,000 units of P90. P90 has standard costs per unit of: 3 lbs of Direct Materials at a cost of $7.00 per lb; .20 hours of Direct Labor at $18.00 per hour, and variable overhead assigned on the basis of 0.05 machine hours at a rate of $50 per machine hour. In October the productio of P90 was 4,600 units, using 15,100 lbs of material costing a total of $107,778. A.Determine the direct materials price variance. (negative numbers indicate a favorable variance)
Swan Company has a direct labor standard of 34 hours per unit of output. Each employee has a standard wage rate of $33 per hour. During March, employees worked 15,000 hours. The direct labor rate variance was $11,070 favorable, and the direct labor efficiency variance was $17,300 unfavorable. What was the actual payroll? Multiple Choice $495,000 $477,700 $506,070 $483,930
Ryle Manufacturing had worked on two jobs, Job 101 and job 102 last year. The estimated manufacturing overhead for last year was 30,000 fixed and 5 per direct labor hour (variable) and estimated direct labor hours of 2000. The factory overhead control account has a balance of 37,000. Actual hours used for Job 101 was 1200 and Job 102 was 1000. What is the total spending variance?
The standard cost of product 5252 includes 1.9 hours of direct labor at $12.00 per hour. The predetermined overhead rate is $22 per direct labor hour. During July, the company incurred 4,000 hours of direct labor at an average rate of $12.30 per hour and $80,700 of manufacturing overhead costs. It produced 2,000 units. (a) Compute the total, price, and quantity variances for labor. Total labor variance 3160 Unfavorable Labor price variance 800 Unfavorable Labor quantity variance $ 2360 Unfavorable (b) Compute the total overhead variance. Total overhead variance $ 7300 Favorable
Chee See Company estimated it would produce 6,200 buckets, though actual production was 6,000 during August. The standard labor cost is 2 buckets per hour at $24.00 per hour. Actual cost per hour was $24.50 with a total labor cost of $71,050. Instructions Determine the amounts of the labor price and the labor quantity variances for August.

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