NuArt Company's budgeted production for November is 5,500 units. Budgeted component unit costs include: direct materials, $24; direct labor, $30; variable overhead, $18. Budgeted fixed overhead is $100,000. NuArt's actual production for November was 6,000 units. Actual component unit costs include: direct materials, $24.50; direct labor, $29; variable overhead, $18.40. Actual fixed overhead was $94,000. NuArt's budget variance amount for direct materials in November would be: Multiple Choice $3,000 F. $3,000 U. $15,000 F. $15,000 U.

NuArt Company's budgeted production for November is 5,500 units. Budgeted component unit costs include: direct materials, $24; direct labor, $30; variable overhead, $18. Budgeted fixed overhead is $100,000. NuArt's actual production for November was 6,000 units. Actual component unit costs include: direct materials, $24.50; direct labor, $29; variable overhead, $18.40. Actual fixed overhead was $94,000. NuArt's budget variance amount for direct materials in November would be: Multiple Choice $3,000 F. $3,000 U. $15,000 F. $15,000 U.

Name: NuArt Company's budgeted production for November is 5,500 units. Budg
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Description: NuArt Company's budgeted production for November is 5,500 units. Budgeted component unit costs include: direct materials, $24; direct labor, $30; variable overhead, $18. Budgeted fixed overhead is $100,000.NuArt's actual production for November was

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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NuArt Company's budgeted production for November is 5,500 units. Budgeted component unit costs include: direct materials, $24; direct labor, $30; variable overhead, $18. Budgeted fixed overhead is $100,000. NuArt's actual production for November was 6,000 units. Actual component unit costs include: direct materials, $24.50; direct labor, $29; variable overhead, $18.40. Actual fixed overhead was $94,000. NuArt's flexible budget amount for direct labor in November would be: Multiple Choice A)$100,000 B)$156,000 C)$174,000 D)$180,000.
Langley Manufacturing Ltd. has budgeted fixed manufacturing overhead at $100,000 and per unit variable costs of $3.50 for Direct Materials; $8.95 for Direct Labourand $4.10 for Variable Overhead. With a relevant range of 10,000 to 15,000 units what are the total costs for activity levels of 10,000 units and 14,000 units, respectively?
The production budget for Manner Company shows units to produce as follows: July, 650; August, 710; and September, 570. Each unit produced requires one hour of direct labor. The direct labor rate is budgeted at $17 per hour in July and August, but is budgeted to be $17.75 per hour in September. Prepare a direct labor budget for the months July, August, and September. Units to produce Direct labor hours needed Cost of direct labor MANNER COMPANY Direct Labor Budget July 650 August 710 September 570 units hs
Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 51,600 machine hours per year, which represents 25,800 units of output. Annual budgeted fixed factory overhead costs are $258,000 and the budgeted variable factory overhead cost rate is $2.50 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 19,500 units, which took 40,600 machine hours. Actual fixed factory overhead costs for the year amounted to $251,600 while the actual variable overhead cost per unit was $2.40. Assume that at the end of the year, management of Patel and Sons decides that the overhead cost variances should be allocated to WIP Inventory, Finished Goods Inventory, and Cost of Goods Sold (CGS) using the following percentages: 10%, 20%, and 70%, respectively. Provide the proper journal entry to close out the…
A company's budgeted varlable manufacturing overhead cost Is $1.05 per machine-hour and Its budgeted fixed manufacturing overhead Is $27,094 per month. The following information is avallable for a recent month: a. The denominator activity of 8,740 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 8.740 machine-hours, the company should produce 3,800 unlts of product. C. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual fixed manufacturing overhead cost 4,220 10,050 $12,060.00 $26,400.00 Required: 1. Compute the predetermined overhead rate and break It down Into varlable and fixed cost elements. (Round your answers to 2 declmal places.) 2. Compute the standard hours allowed for the actual production. 3. Compute the varlable overhead rate and efficlency varlances and the fixed overhead budget and volume varlances. (Indicate the effect of each…
Assume the following five facts: • budgeted fixed manufacturing overhead for the coming period of $308,750 • budgeted variable manufacturing overhead of $4.00 per direct labor hour, • actual direct labor hours worked of 64,000 hours, and • budgeted direct labor-hours to be worked in the coming period of 65,000 hours. The company allocates MOH based on direct-labor hours. The predetermined plantwide overhead rate for the period is closest to:A. $8.50 per dlh B. $8.82 per dlh C. $$8.75 per dlh D. $8.63 per dlh
Cholla Company’s standard fixed overhead rate is based on budgeted fixed manufacturing overhead of $10,800 and budgeted production of 36,000 units. Actual results for the month of October reveal that Cholla produced 31,000 units and spent $10,500 on fixed manufacturing overhead costs.
King Company estimated that it would operate its manufacturing facilities at 800,000 direct labour hours for the year, which served as the denominator activity in the predetermined overhead rate. The total budgeted manufacturing overhead for the year was $2,000,000, of which $1,600,000 was variable and $400,000 was fixed. The standard variable overhead rate was $2 per direct labour hour. The standard direct labour time was 3 direct labour hours per unit. The actual results for the year are presented below: Actual Finished Units Actual Direct Labour Hours Actual Variable Overhead Actual Fixed Overhead 250,000 764,000 $1,610,000 $ 392,000 A. What was the variable overhead spending variance for the year? B. What was the variable overhead efficiency variance for the year?
Der Company uses a standard cost system in which it applies manufacturing overhead on the basis of direct labor-hours. Two direct labor-hours are required for each unit produced. The budgeted activity was set at 9,000 units. Manufacturing overhead was budgeted at $135,000 for the period; 20 percent of this cost was fixed. The 17,200 hours worked during the period resulted in production of 8,500 units. Variable manufacturing overhead cost incurred was $108,500 and fixed manufacturing overhead cost was $28,000. The fixed overhead production volume variance for the period was: a) $750 unfavorable. b) $2,500 unfavorable. c) $1,500 unfavorable. d) $1,000 unfavorable.
MicroMatic Company's static budget for 14,000 units of production includes $56,000 for direct materials, $28,000 for direct labor, utilities of $7,000, and supervisor salaries of $18,000. A flexible budget for 16,000 units of production would show a. the same cost structure in total b. direct materials of $64,000, direct labor of $32.000, utilities of $8,000, and supervisor salaries of $18,000 Oc. direct materials of $56,000, direct labor of $42,000, utilities of $7,000, and supervisor salaries of $21,000 Od. total variable costs of $126.800