King Whiz manufactures premium food processors. The following are some manufacturing overhead data for King Whiz for the year ended December 31, 2017: Manufacturing Overhead Actual Results Flexible Budget Allocated Amount Variable $41,861 $74,646 $74,646 Fixed 350,225 349,200 376,300 Budgeted number of output units: 600 Planned allocation rate: 3 machine-hours per unit Actual number of machine-hours used: 1,021 Static-budget variable manufacturing overhead costs: $70,200 Compute the following quantities (you should be able to do so in the prescribed order): 1. Budgeted number of machine-hours planned 2. Budgeted fixed manufacturing overhead costs per machine-hour 3. Budgeted variable manufacturing overhead costs per machine-hour 4. Budgeted number of machine-hours allowed for actual output produced 5. Actual number of output units 6. Actual number of machine-hours used per output unit
King Whiz manufactures premium food processors. The following are some manufacturing overhead data for King Whiz for the year ended December 31, 2017: Manufacturing Overhead Actual Results Flexible Budget Allocated Amount Variable $41,861 $74,646 $74,646 Fixed 350,225 349,200 376,300 Budgeted number of output units: 600 Planned allocation rate: 3 machine-hours per unit Actual number of machine-hours used: 1,021 Static-budget variable manufacturing overhead costs: $70,200 Compute the following quantities (you should be able to do so in the prescribed order): 1. Budgeted number of machine-hours planned 2. Budgeted fixed manufacturing overhead costs per machine-hour 3. Budgeted variable manufacturing overhead costs per machine-hour 4. Budgeted number of machine-hours allowed for actual output produced 5. Actual number of output units 6. Actual number of machine-hours used per output unit
Chapter1: Financial Statements And Business Decisions
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Question
King Whiz manufactures premium food processors. The following are some manufacturing
|
Manufacturing Overhead
|
Actual Results
|
Flexible Budget
|
Allocated Amount
|
|---|---|---|---|
|
Variable
|
$41,861
|
$74,646
|
$74,646
|
|
Fixed
|
350,225
|
349,200
|
376,300
|
Budgeted number of output units: 600
Planned allocation rate: 3 machine-hours per unit
Actual number of machine-hours used: 1,021
Static-budget variable manufacturing overhead costs: $70,200
Compute the following quantities (you should be able to do so in the prescribed order):
|
1.
|
Budgeted number of machine-hours planned
|
|
2.
|
Budgeted fixed
|
|
3.
|
Budgeted variable manufacturing overhead costs per machine-hour
|
|
4.
|
Budgeted number of machine-hours allowed for actual output produced
|
|
5.
|
Actual number of output units
|
|
6.
|
Actual number of machine-hours used per output unit
|
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