lards for variable manufacturing overhead have beenmpany that makes only one product:´s per unit of outputLable overhead ratepertain to operations for the last month:variable manufacturing overhead costEoverhead efficiency variance for the month?,546 U776 U8.8 hours$15.20 per hourDU,064 F2,950 hours$ 45,610150 units The following standards for variable manufacturing overhead have beenestablished for a company that makes only one product:Standard hours per unit of outputStandard variable overhead rateThe following data pertain to operations for the last month:Actual hoursActual total variable manufacturing overhead costActual outputWhat is the variable overhead efficiency variance for the month?Multiple Choice$25,546 U$24,776 U$770 U8.8 hours$15.20 per hour$20,064 F2$ 45

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Description: lards for variable manufacturing overhead have beenmpany that makes only one product:´s per unit of outputLable overhead ratepertain to operations for the last month:variable manufacturing overhead costEoverhead efficiency variance for the month?,54

Variable overhead efficiency variance measures the difference in Actual variable overhead costs…

Answered: s per unit of output able overhead rate…

Business

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s per unit of output able overhead rate pertain to operations for the last month: 8.8 hours $ 15.20 per hour variable manufacturing overhead cost 2,950 hours $ 45,610 150 units

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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My Company produced 26,000 units during February. Direct materials costs are $4.25 per unit and direct labor is $5.75 Pper unit. Variable overhead is applied at $3.50 per unit and fixed overhead is $78,000 per month. Sales commissions are $0.75 per unit sold. Sales salaries for the month are $65,000 and fixed administrative expenses are $80,000. Required: a. Calculate production cost per unit under variable and absorption costing. b. Prepare an income statement under variable costing and under absorption costing for February assuming all 26,000 units produced were sold for $25 each. c. During March, My Company produced 26,000 units and sold 22,000 units. Prepare an income statement under variable and under absorption costing for March assuming each unit sold for $25 each. d. Is the February net income different under each method? Why or why not? What about March, is the net income different? Why or why not? Reconcile net income under both methods.
Green and White Company reported the following monthly data: Units produced Sales price Direct materials Direct labor Variable overhead Fixed overhead What is Green and White's contribution margin for this month if 1,090 units were sold? Multiple Choice O $74,400 $26,160 $32,700 3,100 units $ 30 per unit $ 1 per unit $ 2 per unit $ 3 per unit $ 12,400 in total $93,000
Standard Actual Variable overhead rate $3.35 Fixed overhead rate $1.80 Hours 18,900 17,955* Fixed overhead $46,000 Actual variable overhead $67,430 Total factory overhead $101,450 *Actual hours are equal to standard hours for units produced. The fixed factory overhead volume variance is
Percent of capacity 90% 100% 110% Direct labor hours 3,600 4,000 4,400 Units of output 720 800 880 Variable overhead $3,960 $4,400 $4,840 Fixed overhead 5,600 5,600 5,600 Total overhead $9,560 $10,000 $10,440 Normal capacity = 100% and overhead is applied based on direct labor hours Standard overhead rate = $10,000/4,000 = $2.50 per direct labor hour Direct materials are $69.50 per unit. Direct labor is $22.50 per hour. Prepare a flexible budget for overhead based on the above data. Flexible Budget 720 800 880 Direct Material $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Direct Labor fill in the blank 4 fill in the blank 5 fill in the blank 6 Variable Overhead fill in the blank 7 fill in the blank 8 fill in the blank 9 Fixed Overhead fill in the blank 10 fill in the blank 11 fill in the blank 12 Total $fill in the blank 13 $fill in the blank 14 $fill in the blank 15
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Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) Direct materials (8,100 yards) Direct labor Variable manufacturing overhead Total $36,360 $ 7,070 $ 3,030 During August, the factory worked only 1,080 direct labor-hours and produced 2,700 sets of covers. The following actual costs were recorded during the month: Per Set of Covers $18.00 3.50 Total $ 46,980 $ 9,990 $ 4,590 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 1.50 $23.00 2. Labor efficiency variance 3. Variable overhead rate variance 3. Variable overhead efficiency variance At standard, each set of covers should require 2.0 yards of material. All of the materials purchased during the month were used in production. Per Set of Covers $ 17.40 3.70 1.70 $22.80 Required: 1. Compute the materials price and quantity variances for August. 2. Compute the labor rate and efficiency variances for August. 3. Compute the variable overhead rate and efficiency…
The per-unit production costs for a product is as follows: $15 direct materials; $10 direct labour; $5 variable overhead. In addition, there is a $20,000 fixed overhead per week. Period costs are $10 variable selling costs per unit, and $40,000 fixed selling and administrative costs per week. The break-even point for the week was 3,000 units. What was the selling price used? 1) $60 2) $40 3) $20 4) None of the listed choices are correct
iven a predetermined overhead rate of $1.60 per direct labor hour, a capacity of 50,000 hours and 42,000 actual hours, the cost of unused capacity is
Case #14 Hilern Inc. recorded the following data for the past month: Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling expenses $4.00 $3.20 $1.00 $0.40 For the past month, fixed manufacturing overhead was $4,000 and the selling and administrative expense was $3,600. At the beginning of the month, the company had 300 units in inventory. During the month, 2,000 units were produced and 2,100 units were sold at a selling price of $14 per unit. Required: (A) Compute the per-unit product cost using absorption costing. (B) What is the operating income (loss) using absorption costing? (C) Compute the per-unit product cost using variable costing. (D) What is the operating income (loss) using variable costing? (E) Discuss the typical reasons why a company would have inventory on-hand. (F) What is a Just-in-Time inventory system? Provide some examples of companies have adopted JIT and discuss possible reasons they would for using this…
Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were sold. Operating data for the month are summarized as follows: Line Item Description Amount Amount Sales $2,150,000 Manufacturing costs: Direct materials $960,000 Direct labor 420,000 Variable manufacturing cost 156,000 Fixed manufacturing cost 288,000 1,824,000 Selling and administrative expenses: Variable $204,000 Fixed 96,000 300,000 Required: Question Content Area 1. Prepare an income statement based on the absorption costing concept. YoSan Inc.Absorption Costing Income StatementFor the Month Ended July 31 Line Item Description Amount Amount - Cost of goods sold: $- Select - Question Content Area 2. Prepare an income statement…
Victoria Manufacturing Victoria Manufacturing produced 5,250 units in October. The following is the company's standards and actuals for the month. Standard: Material 2.1 pounds per unit @ $5.75 per pound Labor 1.8 direct labor hours per unit @ $12.50 per hour Actual: Material 12,075pounds purchased and used @ $5.65 per pound Labor 8,925 direct labor hours at $13 per hour Refer to Victoria Manufacturing. What is the material price variance? Group of answer choices $1,485 U $1,207 U $1,485 F $1,207F