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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Required information [The following information applies to the questions displayed below] Sedona Company set the following standard costs for one unit of its product for this year. Direct material (20 pounds @ $3.30 per pound) Direct labor (15 hours @ $6.00 per DLH) Variable overhead (15 hours @ $2.80 per DLH) Fixed overhead (15 hours @ $1.20 per DLH) Standard cost per unit The $4.00 ($2.80+ $1.20) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 43,500 units, which is 75% of the factory's capacity of 58,000 units per month. The following monthly flexible budget information is available. Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead. Variable overhead Fixed overhead Total overhead Actual variable overhead: Actual fixed overhead Actual total overhead $ 66.00 90.00 42.00 18.00 $ 216.00 $1,624,000 866,000 $ 2,490,000 Operating Levels (% of capacity) 75% 70% 40,600 609,000 $ 1,705, 200 783,000…
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