Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and itsstandard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period.Production (in units)OverheadVariable overheadFixed overheadTotal overheadFlexible Budgetat 80% Capacity50,000$275,00050,000$325,000ActualResults44,000$ 305,0001. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 25,000 DLH, computed as 50,000 units x0.5 DLH per unit.2. Compute the standard overhead applied.3. Compute the total overhead variance.Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.1. Standard overhead rate2. Standard overhead applied3. Overhead variance

1. Standard overhead rate$13 2. Standard overhead applied$286,000 3. Overhead…

Answered: Manuel Company predicts it will operate…

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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! Required information [The following information applies to the questions displayed below.] Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Production (in units) Overhead Variable overhead Fixed overhead Total overhead Flexible Budget at 80% Capacity 54,750 $ 301,125 54,750 $ 355,875 Actual Results 51,600 $ 367,700 (1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the overhead volume variance. Indicate variance as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Volume Variance Volume variance
7. Lonely Mountain Company uses standard costing. The standard cost of its product is as follows: Direct Materials P14.50 Direct labor (2direct labor hours X P8) 16.00 Manufacturing overhead (2 direct labor hours X P11) 22.00 The manufacturing overhead rate is based upon a normal activity level of 600,000 direct labor hours. Lonely Mountain planned to produce 25,000 units each month during the year. The budgeted annual manufacturing overhead is: Variable P3,600,000 Fixed 3,000,000 During March Lonely Mountain produced 26,000 units. Lonely Mountain used 53,500 direct labor hours in March at a cost of P433,350. Actual manufacturing overhead for the month was P250,000 fixed and P325,000 variable. What is the the manufacturing overhead volume variance for March ?
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Check my work The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 11,800 10,800 3rd Quarter 12,800 Units to be produced Each unit requires 0.20 direct labor-hours and direct laborers are paid $16.00 per hour. In addition, the variable manufacturing overhead rate is $1.75 per direct labor-hour. The fixed manufacturing overhead is $98,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $38,000 per quarter. Required: 1. Calculate the company's total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole. 2. and 3. Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole. Complete this question by entering your answers in the tabs below. Req 1 Req…
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[The following information applies to the questions displayed below.] Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Production (in units) Overhead Variable overhead Fixed overhead Total overhead Flexible Budget at 80% Capacity 51,000 Required 1 Required 2 $ 280,500 51,000 $ 331,500 Actual Results (1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. Volume variance 45,600 (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. $ 318,200 Complete this question by entering your answers in the tabs below. Volume Variance Compute the overhead volume variance. Indicate variance as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no vari
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