A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases itsvariable manufacturing overhead standards on direct labor-hours.Standard hours per unit of output3.00 DLH3Standard variable overhead rate$10.75 per DLHThe following data pertain to operations for the last month:Actual direct labor-hours9,600 DLHSActual total variable manufacturing overhead costActual output$95,7602,500 unitsWhat is the variable overhead efficiency variance for the month? What is the variable overhead efficiency variance for the month?Multiple Cholce$22,575 U$6,433 F$6,752 U$6,433 U

Name: A manufacturing company that has only one product has established the
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases itsvariable manufacturing overhead standards on direct labor-hours.Standard hours per unit of output

Business

Accounting

manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its riable manufacturing overhead standards on direct labor-hours. Standard hours per unit of output 3.00 DLHS Standard variable overhead rate $10.75 per DLH e following data pertain to operations for the last month: Actual direct labor-hours 9,600 DLHS $95,760 Actual total variable manufacturing overhead cost Actual output 2,500 units hat is the variable overhead efficiency variance for the month?

manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its riable manufacturing overhead standards on direct labor-hours. Standard hours per unit of output 3.00 DLHS Standard variable overhead rate $10.75 per DLH e following data pertain to operations for the last month: Actual direct labor-hours 9,600 DLHS $95,760 Actual total variable manufacturing overhead cost Actual output 2,500 units hat is the variable overhead efficiency variance for the month?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours. Standard hours per unit of output 3.90 direct labor-hours Standard variable overhead rate $11.25 per direct labor-hour The following data pertain to operations for the last month: Actual direct labor-hours 8,800 direct labor-hours Actual total variable manufacturing overhead cost $ 95,850 Actual output 2,200 units What is the variable overhead rate variance for the month?
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct material: 4 pounds at $9.00 per pound $ 36.00 Direct labor: 3 hours at $12 per hour 36.00 Variable overhead: 3 hours at $8 per hour 24.00 Total standard variable cost per unit $ 96.00 The company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost per Unit Sold Advertising $ 230,000 Sales salaries and commissions $ 160,000 $ 15.00 Shipping expenses $ 6.00 The planning budget for March was based on producing and selling 28,000 units. However, during March the company actually produced and sold 33,000 units and incurred the following costs: Purchased 165,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. Direct-laborers worked 58,000 hours at a rate of…
Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Compute the overhead rate for each activity. Round your answers to two decimal places. Overhead Overhead Annual Rate per Activity per Activity Usage Activity Machine Setups $157,850 4,100 $ Machine Hours 324,622 14,114 2$ Inspections 119,000 3,400
Preble Company manufactures one product Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct material: 4 pounds at $10.00 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour 12.00 Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Fixed Cost Variable Cost per Month per Unit Sold. Advertising Sales salaries and commissions Shipping expenses $ 19.00 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,500 units and incurred the following costs: a. Purchased 150,000 pounds of raw materials at a cost of $9.20 per pound. All of this material was used in production. b. Direct-laborers worked 62,000 hours at a rate of $17.00 per hour. c. Total variable manufacturing overhead for the month was $390,600. d.…
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct material: 5 pounds at $8.00 per pound Direct labor: 2 hours at $14 per hour Variable overhead: 2 hours at $5 per hour Total standard variable cost per unit $ 40.00 28.00 10.00 $ 78.00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Variable Cost per Unit Sold Fixed Cost per Month $ 200,000 $ 100,000 $ 12.00 $ 3.00 S The planning budget for March was based on producing and selling 25,000 units. However, during March the company actually produced and sòld 30,000 units and incurred the following costs: a. Purchased 160,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production. b. Direct-laborers worked 55,000 hours at a rate of $15.00 per hour. c. Total variable…
- ok k int ences w 3 E Overhead information for Cran-Mar Company for October follows: Total factory overhead cost incurred Budgeted fixed factory overhead cost Total standard overhead rate per machine hour (MH) D Standard variable factory overhead rate per MH Standard MHS allowed for the units manufactured here to search Required: 1. What is the standard fixed factory overhead rate per machine hour (MH)? 2. What is the denominator activity level that was used to establish the fixed factory overhead application rate? 3. Two-way analysis (breakdown) of the total factory overhead cost variance: calculate the following factory overhead cost variances for October and indicate whether each variance is favorable (F) or unfavorable (U). a. Total flexible-budget variance. b. Production volume variance. c. Total overhead cost variance. 4. Calculate the production volume variance and indicate whether the variance is favorable (F) or unfavorable (U). Complete this question by entering your answers…
Manufacturing overhead data for the production of Product H by Kingbird Company, assuming the company uses a standard cost system, are as follows. Overhead incurred for 46,100 actual direct labor hours worked $281,880 Overhead rate (variable $5; fixed $1) at normal capacity of 58,300 direct labor hours $6 Standard hours allowed for work done $47,180 Compute the total overhead variance
Motopads Manufacturing, Inc. manufactures a single product. Variable manufacturing overhead is applied to products based on direct labor hours. The standard costs for each unit of product are as follows: Direct material: 6 grams at P5 per gram P30.00 Direct labor: 1.8 hours at P100 per hour 180.00 Variable manufacturing overhead: 1.8 hours at P50 per hour 90.00 Total standard variable cost per unit P300.00 During August, the company produced 2,000 units, with costs broken down as follows: Material purchased: 18,000 grams at 6 per gram P108,000.00 Material used in production: 14,000 grams - Direct labor: 4,000 hours at P97.50 per hour 390,000.00 Variable manufacturing overhead costs incurred 208,000.00 Requirement: Compute and show solutions for the: Direct materials variance Direct labor variance Variable manufacturing overhead variances
Hanshaben
Bullseye Company manufactures dartboards. Its standard cost information follows: Direct materials (cork board) Direct labor Standard Quantity 0.50 square feet 0.90 hour Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($21,750/87,000) Bullseye has the following actual results for the month of September: Number of units produced and sold Number of square feet of corkboard purchased and used Cost of corkboard used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 0.90 hour Standard Price (Rate) $ 1.30 per square feet $5.00 per hour $0.50 per hour 74,000 43,000 $ 47,200 80,000 $ 98,000 $ 103,880 $ 33,000 Standard Unit Cost $ 0.65 4.50 0.45 0.25 Required: 1. Calculate the fixed overhead spending variance for Bullseye. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). 2. Calculate the fixed overhead volume variance…
Motopads Manufacturing, Inc. manufactures a single product. Variable manufacturing overhead is applied to products based on direct labor hours. The standard costs for each unit of product are as follows: Direct material: 6 grams at P5 per gram P30.00 Direct labor: 1.8 hours at P100 per hour 180.00 Variable manufacturing overhead: 1.8 hours at P50 per hour 90.00 Total standard variable cost per unit P300.00 During August, the company produced 2,000 units, with costs broken down as follows: Material purchased: 18,000 grams at 6 per gram P108,000.00 Material used in production: 14,000 grams - Direct labor: 4,000 hours at P97.50 per hour 390,000.00 Variable manufacturing overhead costs incurred 208,000.00 Requirement: Compute and show solutions for the: Direct materials variance Direct labor variance Variable manufacturing overhead variances
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct material: 4 pounds at $9.00 per pound $ 36.00 Direct labor: 3 hours at $12 per hour 36.00 Variable overhead: 3 hours at $8 per hour 24.00 Total standard variable cost per unit $ 96.00 The company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost per Unit Sold Advertising $ 230,000 Sales salaries and commissions $ 160,000 $ 15.00 Shipping expenses $ 6.00 The planning budget for March was based on producing and selling 28,000 units. However, during March the company actually produced and sold 33,000 units and incurred the following costs: Purchased 165,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. Direct-laborers worked 58,000 hours at a rate of…