(d)If the labor quantity variance was $6,500 unfavorable, what were the actual direct labor hours worked?(e)Your answer is correct.(f)Actual hours workedeTextbook and MediaYour answer is correct.If the labor price variance was $18,312 favorable, what was the actual rate per hour? (Round answer to 2 decimal places, e.g. 2.75.)Actual rate per hour $eTextbook and Media45,780 hoursPredetermined overhead rate $Attempts: 1 of 5 used12.60Attempts: 2 of 5 usedIf total budgeted manufacturing overhead was $374,250 at normal capacity, what was the predetermined overhead rate based ondirect labor hours? (Round answer to 2 decimal places, e.g. 2.75.) Lily Company uses a standard cost accounting system. In 2025, the company produced 28,300 units. Each unit took several pounds ofdirect materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49,900 direct laborhours. During the year, 131,200 pounds of raw materials were purchased at $0.94 per pound. All materials purchased were usedduring the year.(a)If the materials price variance was $1,312 favorable, what was the standard materials price per pound? (Round answer to 2 decimalplaces, e.g. 2.75.)Standard materials price per pound $(b)Your answer is correct.(c)eTextbook and Media✓ Your answer is correct.Standard materials quantity per unitIf the materials quantity variance was $17,100 unfavorable, what was the standard materials quantity per unit?(d)eTextbook and Media✓ Your answer is correct.What were the standard hours allowed for the units produced?Standard hours allowedeTextbook and MediaYour answer is correct.45,280 hoursActual hours worked0.95If the labor quantity variance was $6,500 unfavorable, what were the actual direct labor hours worked?45,780 hours4 poundsAttempts: 1 of 5 usedAttempts: 4 of 5 usedAttempts: 1 of 5 used

Predetermined overhead rate :— It is the rate used to allocate manufacturing overhead to cost object…

Answered: Lily Company uses a standard cost…

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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Cavy Company estimates that the factory overhead for the following year will be $1,788,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 29,800 hours. The machine hours for the month of April for all of the jobs were 4,770. If the actual factory overhead for April totaled $280,190, determine the over- or underapplied amount for the month. Enter the amount as a positive number.
Strait Co. manufactures office furniture. During the most productive month of the year, 3,100 desks were manufactured at a total cost of $82,600. In the month of lowest production, the company made 1,160 desks at a cost of $58,100. Using the high-low method of cost estimation, total fixed costs are
Superior, Inc. produced 1,000 units of the company's product in 2018. The standard quantity of direct materials was three yards of cloth per unit at a standard cost of $1.10 per yard. The accounting records showed that 2,900 yards of cloth were used and the company paid $1.15 per yard. Standard time was two direct labor hours per unit at a standard rate of $10.75 per direct labor hour. Employees worked 1,400 hours and were paid $10.25 per hour. Read the requirements Requirement 1. What are the benefits of setting cost standards? Standard costing helps managers do the following: Requirements 1. What are the benefits of setting cost standards? 2. Calculate the direct materials cost variance and the direct materials efficiency variance as well as the direct labor cost and efficiency variances Print Done
Trippett Industries manufactures cleaning products. During the year, the company spent $600,000 on chemicals and $728,000 on conversion costs. Overhead is allocated at a rate of 180% of direct labor costs. How much did the company spend on manufacturing overhead during the year? Multiple Choice $260,000. $404,444. $468,000. $128,000.
Johnson Company estimates that its production workers will work 88,400 direct labor hours to produce 9,170 units during the upcoming period and that overhead costs will amount to $1,091,230. During the year, its manufacturing employees actually worked 100,000 direct labor hours to produce 10,000 units and incurred $1,100,000 of overhead costs. Because the goods made by Johnson are homogeneous (that is, they are identical), the company has decided it makes sense to use number of units as the allocation base for overhead. Based on this information the predetermined overhead rate is: Multiple Choice $11.00 per direct labor hour. $129.00 per unit. $119.00 per unit.
Emley Company incurred direct materials costs of $750,000 during the year. Manufacturing overhead applied was $700,000 and is applied based on direct labor costs. The predetermined overhead rate is 70%. How much are Emley Company's total manufacturing costs for the year?
Cavy Company estimates that the factory overhead for the following year will be $2,034,500. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 31,300 hours. The machine hours for the month of April for all of the jobs were 2,830. If the actual factory overhead for April totaled $180,455, determine the over- or underapplied amount for the month. Enter the amount as a positive number.
Thomlin Company forecasts that total overhead for the current year will be $11,176,000 with 183,000 total machine hours. Year to date, the actual overhead is $7,700,000 and the actual machine hours are 97,000 hours. The predetermined overhead rate based on machine hours is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours.
Cavy Company estimates that the factory overhead for the following year will be $404,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 10,100 hours. Calculate the predetermined overhead rate to apply factory overhead. Round your answer to the nearest cent. $fill in the blank 1 per machine hour
Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 42,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $571,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Harris's actual manufacturing overhead cost for the year was $773,298 and its actual total direct labor was 42,500 hours. Required: Compute the company's plantwide predetermined overhead rate for the year. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH
, Inc. produced 1,000 units of the company's product in 2024. The standard quantity of direct materials was three yards of cloth per unit at a standard cost of $1.05 per yard. The accounting records showed that 2,600 yards of cloth were used and the company paid $1.10 per yard. Standard time was two direct labor hours per unit at a standard rate of $14.50 per direct labor hour. Employees worked 1,900 hours and were paid $13.50 per hour. Read the requirements1. Requirement 1. What are the benefits of setting cost standards? Standard costing helps managers do the following: Prepare the master budget Set target levels of performance for flexible budgets Identify performance standards Set sales prices of products and services Decrease accounting costs Requirement 2. Calculate the direct materials cost variance and the direct materials efficiency variance as well as the direct labor cost and efficiency variances. Begin with the cost…
Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows: Direct materials $ 170,000 Direct labor $ 110,000 Variable manufacturing overhead $ 200,000 Fixed manufacturing overhead $ 240,000 Sales totaled $825,000 for the year, variable selling and administrative expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There was no beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the ending inventory for the year would be valued at:

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