What was the variable overhead rate variance for the month? Seabrook Corporation's variable overhead is applied on thebasis of direct labor-hours. The standard cost card for productJ14M specifies 6.2 direct labor-hours per unit of J14M. Thestandard variable overhead rate is $7.20 per direct labor-hour.During the most recent month, 1,750 units of product J14Mwere made and 10,950 direct labor hours were worked. Theactual variable overhead incurred was $77,160.Required:A. What was the variable overhead rate variance for the month?B. What was the variable overhead efficiency variance for themonth?

Explanation of Variable Overhead Rate Variance:Variable Overhead Rate Variance measures the…

Answered: Seabrook Corporation's variable…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 8PB: Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined...

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Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
Comacho Chemical Co. recorded costs for the month of 18,900 for materials, 44,100 for labor, and 26,250 for factory overhead. There was no beginning work in process, 8,000 units were finished, and 3,000 units were in process at the end of the period, two-thirds completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost. (Round unit costs to three decimal places.)
A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the activity for the cost driver was estimated as 2,500 hours. If product A utilized 1,350 hours and product 8 utilized 1,100 hours, what was the total amount of overhead assigned to the products? A. $35000 B. $30.800 C. $37,800 D. $68,600
Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct labor hours costing $1,500,000 in labor and utilizing 15,000 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?
Grass Pad's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product AB90 specifies 8.4 direct labor-hours per unit of AB90. The standard variable overhead rate is $5.60 per direct labor-hour. During the most recent month, 800 units of product AB90 were made and 6,800 direct labor-hours were worked. The actual variable overhead incurred was $41,140. Required: a. What was the variable overhead rate variance for the month? b. What was the variable overhead efficiency variance for the month?
Venus Company applies overhead based on direct labor hours. The variable overhead standard is 10 hours at $3.50 per hour. During October, Venus Company spent $157,600 for variable overhead. 47,440 labor hours were used to produce 4,800 units. What is the over- or underapplied variable overhead? Multiple Choice $10,400 overapplied $8.440 overapplied $8,440 underapplied $1,960 overapplied
Osborn Manufacturing uses a predetermined overhead rate of S19.00 per direct labor hour. This predetermined rate wae based on a cost formula that estimates $243,200 of total manufacturing overhead for an estimated activity level of 12 800 direct labor-hours The company actually incurred $241,000 of manufacturing overhead annd 12,300 direct labor-hours during the period Required: 1. Determine the amount of underapplied or overapplied manufecturing averhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to dis pose of the underapplied or overapplied overhead increase or decrease the company's gross margin? By how much? 1 Manufacturing overhead underappled by 2 The gross margin would decrease
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Coleridge Company estimates that its production workers will work 143,000 direct labor hours during the upcoming period and that overhead costs will amount to $1,287,000. Assume overhead to be allocated on the basis of direct labor hours. What predetermined overhead rate would be used to apply overhead to production during the period? Multiple Choice $9.00 per direct labor hour $0.97 per direct labor hour $0.97 per unit $9.00 per unit
Vai

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