Melody Manufacturing provided the following data for the year: • • . • • Standard variable overhead rate (SVOR) per direct labor hour = $2.80 Standard hours allowed per unit = 3.5 hours Actual production = 20,000 units Actual variable overhead costs = $198,240 Actual direct labor hours = 66,000 hours Required: A) Calculate the Actual Variable Overhead Rate (AVOR) B) Calculate the Applied Variable Overhead C) Calculate the Total Variable Overhead Variance

Melody Manufacturing provided the following data for the year: • • . • • Standard variable overhead rate (SVOR) per direct labor hour = $2.80 Standard hours allowed per unit = 3.5 hours Actual production = 20,000 units Actual variable overhead costs = $198,240 Actual direct labor hours = 66,000 hours Required: A) Calculate the Actual Variable Overhead Rate (AVOR) B) Calculate the Applied Variable Overhead C) Calculate the Total Variable Overhead Variance

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

See similar textbooks

Similar questions

SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
General Accounting
CALCULATE THE AVOR
Solution for this
A Company establishes the following standards for the costs of one unit of its product. The standard production overhead costs per unit are bascd on direct-labor hours. Calculation for standard per unit cost is as follows: Std Cost Std Qty 3.00 kg | Direct Material Direct Labor Variable Overhead Fixed Overhead* |Total *based on practical capacity of 20,000 direct-labor hour per month Std Price/Rate $ 8.25 per kg $ 10.00 per hour $ 10.00 per hour $ 7.50 per hour 24.75 $ 20.00 2.00 hour $ 20.00 2.00 hour 15.00 2.00 hour 79.75 During December 2020, the Company purchased 30,000 kg of direct material at a total cost of $246,000. The total wages for December were $260,000, 75% of which were for direct labor. The Company manufactured 9,500 units of product during December 2020, using 28,400 kg of the direct material purchased in December and 18,900 direct-labor hours. Actual variable and fixed overhead cost were $200,000 and $150,000, respectively. The scheduled production for the month was…
Answer Step by step
subject: general accounting
Calculate the overhead allocation rate
Actual Variable Overhead Rate?
What is the production cost per unit?
Calculate the overhead allocation rate
Calculate the overhead allocation rate using direct material cost.