Homework Help is Here – Start Your Trial Now!
Business
Accounting
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.

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 12P: Overhead application rate Roll Tide Manufacturing Inc. uses a job order cost system and standard...
See similar textbooks
icon
Related questions
Question

kindly skip if you have doubt to solve this questions

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.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS