Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of121,000 units requiring 484,000 direct labor hours. (Practical capacity is 504,000 hours.) Annual budgeted overhead costs total $788,920, of which $571,120 is fixedoverhead. A total of 119,200 units using 482,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $262,000, and actualfixed overhead costs were $555,250.Required:1. Compute the fixed overhead spending and volume variances.XFixed Overhead Spending VarianceFavorableFixed Overhead Volume VarianceUnfavorable2. Compute the variable overhead spending and efficiency variances. Do not round intermediate calculationsVariable Overhead Spending VarianceUnfavorableVariable Overhead Efficiency VarianceUnfavorableXx✓

actual fixed overhead cost = $555250budget fixed overhead = $571120variable actual cost =…

Answered: Oerstman, Inc., uses a standard costing…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: May January February 2,200 2,300 June July 1,700 March April August 1,300 Her operations manager is considering a new plan, which begins in January with 200 units on hand and ends with zero inventory. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. The plan is called plan B. 1,500 1,600 1,600 1,900 Plan B: Produce at a constant rate of 1,300 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $80 per unit. Subcontracting capacity is limited to 1,000 units per month. Evaluate this plan by computing the costs for January through August. In order to arrive at the costs, first compute the ending inventory and subcontracting units for each month by filling in the table below (enter your responses as whole numbers). Get…
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