Maxwell Company uses a standard cost accounting system and applies production overhead to products on the basis of machinehours. The following information is available for the year just ended:Standard variable-overhead rate per hour: $7.30Standard fixed-overhead rate per hour: $12.60Planned activity during the period: 20,000 machine hoursActual production: 12,700 finished unitsMachine-hour standard: Two completed units per machine hourActual variable overhead: $164,500Actual total overhead: $462,950OActual machine hours worked: 23,500Required:1. Calculate the budgeted fixed overhead for the year.2. Compute the variable-overhead spending variance.3. Calculate the company's fixed-overhead volume variance.4-a. Did Maxwell spend more or less than anticipated for fixed overhead?4-b. What was the difference in actual and anticipated overhead?5. Was variable overhead underapplied or overapplied during the year? By how much?Complete this question by entering your answers in the tabs below.Req 1Reg 2Reg 3Req 4AReq 4BReq 5Calculate the budgeted fixed overhead for the year.Budgeted fixed overheadRenRea 2 >< Prev3 of 3NextMacBook PrO%23$4%&*379.ERYFGKCV..

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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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During the period, Shalom Company produced 8,000 units and applied overhead based on the direct labor hours. The standard cost card showed the following information: Standard Direct labor hours per unit Actual Direct labor hours Standard Fixed overhead per DLH Standard Variable overhead per DLH Budgeted variable overhead Actual Variable overhead cost Budgeted fixed overhead 3 25,000 P1.90 P2.20 P48,000 P51,000 P55,000 P57,500 Actual Fixed overhead cost Determine the variances based on the information above. Indicate as favorable or unfavorable. Format should be: 8,000 F or 8,000 UF No need to indicate if the amount is positive or negative. Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. What is the fixed overhead budget variance?
Luthan Company uses a plantwide predetermined overhead rate of $23.40 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $280,800 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $268,000 and 12,700 total direct labor-hours during the period. Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.
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k A ances 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 28,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $525,000 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 $668,325 and its actual total direct labor was 28,500 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
pany applies overhead based on machine hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $500,000, and machine hours would total 20,000. By 20x1 vear-end, actual overhead totaled $525,000, and actual machine hours were 25.000, On the basis of this information, the 20x1 predetermined overhead rate was: A) $20 per machine hour. B) $0.05 per machine hour. C) $0.04 per machine hour. D) $25 per machine hour. E) $21 per machine hour.
Kingsport Containers Company makes a single product with wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Direct materials Direct labor Manufacturing overhead Total manufacturing costs (a) Number of units to be produced (b) Estimated unit product cost (a) (b) First $ 200,000 120,000 230,000 $ 550,000 Required 1 Required 2 Complete this question by entering your answers in the tabs below. 120,000 $ 4.58 The as production Quarter Required 3 Required 4 Second $ 100,000 60,000 206,000 $366,000 60,000 $ 6.10 Management finds the variation in quarterly unit product costs to be confusing. Accordingly, you have been asked to find a more appropriate way of applying manufacturing overhead cost to units of product. Required: 1. Assuming the estimated variable…
Luthan Company uses a plantwide predetermined overhead rate of $22.50 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $270,000 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor- hours. The company incurred actual total manufacturing overhead cost of $268,000 and 12,500 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period. Manufacturing overhead applied
Required information [The following information applies to the questions displayed below.] Delph Company uses job-order costing with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 54,000 machine-hours would be required for the period's estimated level of production. It also estimated $980,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabrication-it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following information to enable calculating departmental overhead rates: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Job D-70 Direct materials cost Direct labor cost Machine-hours Molding $ 370,000 $ 200,000 15,000 Job C-200 Direct…
Luthan Company uses a plantwide predetermined overhead rate of $22.30 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $267,600 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $266,000 and 12,400 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.
Henkes Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 65,000 labor-hours. The estimated variable manufacturing overhead was $8.10 per labor-hour and the estimated total fixed manufacturing overhead was $1,092,000. The actual labor-hours for the year turned out to be 67,800 labor-hours. Required: Compute the company's predetermined overhead rate for the recently completed year Note: Round your answer to 2 decimal places. Predetermined overhead rate per labor-hour
Henkes Corporation bases its predetermined overhead rate on the estimated labor-hours for the upćoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 80,000 labor-hours. The estimated variable manufacturing overhead was $10.70 per labor-hour and the estimated total fixed manufacturing overhead was $1,440,000. The actual labor-hours for the year turned out to be 84,000 labor-hours. Required: Compute the company's predetermined overhead rate for the recently completed year. (Round your answer to 2 decimal places.) Predetermined overhead rate per labor-hour

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