Sedona Company set the following standard costs for one unit of its product for this year. Direct material (30 Ibs. @ $2.30 per Ib.) Direct labor (20 hrs. @ $4.30 per hr.) Variable overhead (20 hrs. @ $2.30 per hr.) Fixed overhead (20 hrs. @ $1.20 per hr.) $ 69.00 86.00 46.00 24.00 Total standard cost $225.00 The $3.50 ($2.30 + $1.20) total overhead rate per direct labor hour is based on an expected operating level equal to 60% of the factory's capacity of 69,000 units per month. The following monthly flexible budget information is also available. Operating Levels (% of capacity) Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead 55% 60% 65% 37,950 759,000 41,400 828,000 44,850 897,000 $1,745,700 993,600 $2,739, 300 $1,904,400 993,600 $2,898,000 $2,063,100 993,600 $3,056,700 Fixed overhead Total overhead During the current month, the company operated at 55% of capacity, employees worked 731,000 hours, and the following actual overhead costs were incurred. $1,710,000 1,031,500 $2,741,500 Variable overhead costs Fixed overhead costs Total overhead costs

Sedona Company set the following standard costs for one unit of its product for this year. Direct material (30 Ibs. @ $2.30 per Ib.) Direct labor (20 hrs. @ $4.30 per hr.) Variable overhead (20 hrs. @ $2.30 per hr.) Fixed overhead (20 hrs. @ $1.20 per hr.) $ 69.00 86.00 46.00 24.00 Total standard cost $225.00 The $3.50 ($2.30 + $1.20) total overhead rate per direct labor hour is based on an expected operating level equal to 60% of the factory's capacity of 69,000 units per month. The following monthly flexible budget information is also available. Operating Levels (% of capacity) Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead 55% 60% 65% 37,950 759,000 41,400 828,000 44,850 897,000 $1,745,700 993,600 $2,739, 300 $1,904,400 993,600 $2,898,000 $2,063,100 993,600 $3,056,700 Fixed overhead Total overhead During the current month, the company operated at 55% of capacity, employees worked 731,000 hours, and the following actual overhead costs were incurred. $1,710,000 1,031,500 $2,741,500 Variable overhead costs Fixed overhead costs Total overhead costs

Name: (1) Compute the predetermined overhead application rate per hour for
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Description: (1) Compute the predetermined overhead application rate per hour for total overhead, variable overhead, and fixed overhead.PredeterminedOH RateVariable overhead costsFixed overhead costsTotal overhead costs(2) Compute the total variable and total fi

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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Sedona Company set the following standard costs for one unit of its product for this year. Direct material (20 pounds @ $2.60 per pound) $ 52.00 Direct labor (10 hours @ $8.00 per DLH) 80.00 Variable overhead (10 hours @ $4.40 per DLH) 44.00 Fixed overhead (10 hours @ $2.00 per DLH) 20.00 Standard cost per unit $ 196.00 The $6.40 ($4.40 + $2.00) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 40,500 units, which is 75% of the factory’s capacity of 54,000 units per month. The following monthly flexible budget information is available. Flexible Budget Operating Levels (% of capacity) 70% 75% 80% Budgeted production (units) 37,800 40,500 43,200 Budgeted direct labor (standard hours) 378,000 405,000 432,000 Budgeted overhead Variable overhead $ 1,663,200 $ 1,782,000 $ 1,900,800 Fixed overhead 810,000 810,000 810,000 Total overhead $ 2,473,200 $ 2,592,000 $ 2,710,800 During the current month, the company…
The cost accounting system at McClellan allocates overhead to products based on direct labor cost. Overhead in year 1, which just ended, was $2,380,000. Data on units sold for year 1 along with the unit sales price and unit direct costs for the two models follow: Starter Model (12,000 units) Pro Model(4,000 units) Sales price per unit $ 310 $ 600 Direct materials per unit 80 150 Direct labor per unit 100 125 Required: Compute product line profits or loss for the Starter model and the Pro model for year 1. A study of overhead shows that without the Starter model, overhead would fall to $1,400,000. Assume all other revenues and costs would remain the same for the Pro model in year 2. Compute product line profits/loss for the Pro model in year 2 assuming the Starter model was not produced or sold.
A company estimated the manufacturing overhead costs for the coming year at $420,00 The total estimated direct labor hours are 15,000 hours, and the estimated machine hou to be worked are 6,000 hours. The company allocates its manufacturing overhead cos based on the direct labor hours. What is the pre-determined overhead allocation rate? a. $20 per direct labor hour b. $70 per machine hour c. $28 per machine hour d. $28 per direct labor hour Answer O A O B OD
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A company budgets $106,800 for overhead and 7,060 direct labor hours for the year. The company's Basic model uses 2 direct labor hours per unit and its Premium model uses 3 direct labor hours per unit. The direct labor rate is $43 per hour. Direct materials cost $13 per unit for the Basic model and $19 per unit for the Premium model. Enter answers in the tabs below. Required Required 1 2 Compute the single plantwide overhead rate based on direct labor hours. Select Numerator Select Denominator Required 3 squired Required 2
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The following is the standard cost card for X Company's only product:Direct materials, 4 metres at $4.00Direct labour, 5 hours at $10.00Variable overhead. 1.5 hours at $3.00Fixed overhead, 1.5 hours at $7.00Standard cost per unit $16.00 $15.00 $4.50 $10.50 $46.00 The company manufactured and sold 18,000 units of product during the year. A total of 70,200 metres of material was purchased during the year at cost of $4.20 per metre. All of this material was used to manufacture the 18,000 units. The company records showed no beginning or ending inventories for the year. The company worked 29,250 direct labour hours during the year at a cost of $9.75 per hour. Overhead cost is applied to products on the basis of direct labour hours. The denominator activity level (direct labour hours) was 22,500 hours. Budgeted fixed overhead costs as shown on the flexible budget were $157,500, while actual fixed overhead costs were $156,000. Actual variable overhead costs were $90,000 Required: Compute…
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Henry Company has established the following standards for the costs of one unit of its product. The standard production overhead costs per unit are based on direct-labor hours. Calculation for standard per unit cost is as follows: Std Cost Std Qty Std Price/Rate Direct Material $ 14.40 6.00 kg $ 2.40/kg Direct Labor $ 3.00 0.40 hour $ 7.50/hour Variable Overhead $ 4.00 0.40 hour $ 10.00/hour Fixed Overhead* $ 4.80 0.40 hour $ 12.00/hour Total $ 26.20 *based on practical capacity of 2,500 direct-labor hour per month During December 2020, Henry purchased 30,000 kg of direct material at a total cost of $75,000. The total wages for December were $20,000, 75% of which were for direct labor. Henry manufactured 4,500 units of product during December 2020, using 28,000kg of the direct material purchased in December and 2,100 direct-labor hours. Actual variable and fixed overhead cost were $23,100 and $25,000, respectively.…
The following information applies to the questions displayed below.]Antuan Company set the following standard costs per unit for its product. Direct materials (5.0 pounds @ $6.00 per pound) $ 30.00 Direct labor (1.9 hours @ $11.00 per hour) 20.90 Overhead (1.9 hours @ $18.50 per hour) 35.15 Standard cost per unit $ 86.05 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factory’s capacity of 20,000 units per month. Following are the company’s budgeted overhead costs per month at the 75% capacity level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 30,000 Indirect labor 75,000 Power 30,000 Maintenance 30,000 Total variable overhead costs 165,000 Fixed overhead costs Depreciation—Building 24,000 Depreciation—Machinery 70,000 Taxes and insurance 18,000 Supervisory salaries 250,250 Total fixed overhead costs 362,250 Total overhead costs $ 527,250 The…
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