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Question:43 Eastern Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor hours (DLHs). To prepare overhead rates, the company estimates that 300,000 units will be produced, requiring 60,000 DLHs. The maximum capacity is 400,000 units of 80,000 labor hours. Standard quantities, prices, and costs are below: Direct materials Direct labor Per Unit Standards 0.25 kilogram Standard Price or Rate $16 per kilogram 0.20 DLH $10 per DLH Variable 0.20 DLH $5 per DLH Fixed overhead 0.20 DLH $10 per DLH Standard Cost $ 4 2 1 2 Actual results for the year are below:Units produced and sold - 330,000 Actual direct labor hours worked - 64,800Actual variable manufacturing overhead cost $327,240Actual fixed manufacturing overhead cost- $612,000.Compute the fixed manufacturing overhead volume variance. Show your complete solution. Eastern Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor hours (DLHs). To prepare overhead rates, the company estimates that 300,000 units will be produced, requiring 60,000 DLHs. The maximum capacity is 400,000 units of 80,000 labor hours. Standard quantities, prices, and costs are below: Per Unit Standards 0.25 kilogram Standard Price or Rate Standard Cost Direct $16 per kilogram $4 Direct labor 0.20 DLH $10 per DLH 2 Variable 0.20 DLH $5 per DLH 1 Fixed 0.20 DLH $10 per DLH 2 Actual results for the year are below: Units produced and sold - 330,000 Actual direct labor hours worked - 64,800 Actual variable manufacturing overhead cost- $327,240 Actual fixed manufacturing overhead cost - $612,000 Compute the fixed manufacturing overhead budget variance. Show your complete solution.

Question:43 Eastern Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor hours (DLHs). To prepare overhead rates, the company estimates that 300,000 units will be produced, requiring 60,000 DLHs. The maximum capacity is 400,000 units of 80,000 labor hours. Standard quantities, prices, and costs are below: Direct materials Direct labor Per Unit Standards 0.25 kilogram Standard Price or Rate $16 per kilogram 0.20 DLH $10 per DLH Variable 0.20 DLH $5 per DLH Fixed overhead 0.20 DLH $10 per DLH Standard Cost $ 4 2 1 2 Actual results for the year are below:Units produced and sold - 330,000 Actual direct labor hours worked - 64,800Actual variable manufacturing overhead cost $327,240Actual fixed manufacturing overhead cost- $612,000.Compute the fixed manufacturing overhead volume variance. Show your complete solution. Eastern Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor hours (DLHs). To prepare overhead rates, the company estimates that 300,000 units will be produced, requiring 60,000 DLHs. The maximum capacity is 400,000 units of 80,000 labor hours. Standard quantities, prices, and costs are below: Per Unit Standards 0.25 kilogram Standard Price or Rate Standard Cost Direct $16 per kilogram $4 Direct labor 0.20 DLH $10 per DLH 2 Variable 0.20 DLH $5 per DLH 1 Fixed 0.20 DLH $10 per DLH 2 Actual results for the year are below: Units produced and sold - 330,000 Actual direct labor hours worked - 64,800 Actual variable manufacturing overhead cost- $327,240 Actual fixed manufacturing overhead cost - $612,000 Compute the fixed manufacturing overhead budget variance. Show your complete solution.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question:43 Eastern Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor hours (DLHs). To prepare overhead rates, the company estimates that 300,000 units will be produced, requiring 60,000 DLHs. The maximum capacity is 400,000 units of 80,000 labor hours. Standard quantities, prices, and costs are below: Direct materials Direct labor Per Unit Standards 0.25 kilogram Standard Price or Rate $16 per kilogram 0.20 DLH $10 per DLH Variable 0.20 DLH $5 per DLH Fixed overhead 0.20 DLH $10 per DLH Standard Cost $ 4 2 1 2 Actual results for the year are below:Units produced and sold - 330,000 Actual direct labor hours worked - 64,800Actual variable manufacturing overhead cost $327,240Actual fixed manufacturing overhead cost- $612,000.Compute the fixed manufacturing overhead volume variance. Show your complete solution. Eastern Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor hours (DLHs). To prepare overhead rates, the company estimates that 300,000 units will be produced, requiring 60,000 DLHs. The maximum capacity is 400,000 units of 80,000 labor hours. Standard quantities, prices, and costs are below: Per Unit Standards 0.25 kilogram Standard Price or Rate Standard Cost Direct $16 per kilogram $4 Direct labor 0.20 DLH $10 per DLH 2 Variable 0.20 DLH $5 per DLH 1 Fixed 0.20 DLH $10 per DLH 2 Actual results for the year are below: Units produced and sold - 330,000 Actual direct labor hours worked - 64,800 Actual variable manufacturing overhead cost- $327,240 Actual fixed manufacturing overhead cost - $612,000 Compute the fixed manufacturing overhead budget variance. Show your complete solution.
Transcribed Image Text:Question:43 Eastern Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor hours (DLHs). To prepare overhead rates, the company estimates that 300,000 units will be produced, requiring 60,000 DLHs. The maximum capacity is 400,000 units of 80,000 labor hours. Standard quantities, prices, and costs are below: Direct materials Direct labor Per Unit Standards 0.25 kilogram Standard Price or Rate $16 per kilogram 0.20 DLH $10 per DLH Variable 0.20 DLH $5 per DLH Fixed overhead 0.20 DLH $10 per DLH Standard Cost $ 4 2 1 2 Actual results for the year are below:Units produced and sold - 330,000 Actual direct labor hours worked - 64,800Actual variable manufacturing overhead cost $327,240Actual fixed manufacturing overhead cost- $612,000.Compute the fixed manufacturing overhead volume variance. Show your complete solution. Eastern Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor hours (DLHs). To prepare overhead rates, the company estimates that 300,000 units will be produced, requiring 60,000 DLHs. The maximum capacity is 400,000 units of 80,000 labor hours. Standard quantities, prices, and costs are below: Per Unit Standards 0.25 kilogram Standard Price or Rate Standard Cost Direct $16 per kilogram $4 Direct labor 0.20 DLH $10 per DLH 2 Variable 0.20 DLH $5 per DLH 1 Fixed 0.20 DLH $10 per DLH 2 Actual results for the year are below: Units produced and sold - 330,000 Actual direct labor hours worked - 64,800 Actual variable manufacturing overhead cost- $327,240 Actual fixed manufacturing overhead cost - $612,000 Compute the fixed manufacturing overhead budget variance. Show your complete solution.
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