See Clear Company manufactures clear plastic CD cases. It applies variable overhead based on the number of machine hours used. Information regarding See Clear's overhead for the month of December follows: Standard Unit Cost Standard Quantity 0.2 machine hours per $1.00 per machine Standard Rate Variable manufacturing overhead hour $ 0.20 case During December, See Clear had the following actual results: Number of units produced and sold Actual variable overhead cost Actual machine hours 352,000 $ 74,000 65,000 Required: Compute See Clear's variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

See Clear Company manufactures clear plastic CD cases. It applies variable overhead based on the number of machine hours used. Information regarding See Clear's overhead for the month of December follows: Standard Unit Cost Standard Quantity 0.2 machine hours per $1.00 per machine Standard Rate Variable manufacturing overhead hour $ 0.20 case During December, See Clear had the following actual results: Number of units produced and sold Actual variable overhead cost Actual machine hours 352,000 $ 74,000 65,000 Required: Compute See Clear's variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

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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A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its varlable manufacturing overhead standards on direct labor-hours Standard hours per unit of output Standard variable overhead rate 5.10 DLHS $11.20 per DLH The following data pertain to operations for the last month: 8,600 DLHS $95,980 1,600 units Actual direct labor-hours Actual total variable manufacturing overhead cost Actual output What is the varlable overhead rate variance for the month?
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
S Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information from LLL's standard cost card follows: Variable manufacturing overhead Standard Standard Standard Quantity Rate Unit Cost 0.6 $0.80 $0.48 During August, LLL had the following actual results: Units produced and sold 25,000 Actual variable overhead $ 9,490 Actual direct labor hours 16,000 Required: Compute LLL's variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable/Overapplied and "U" for unfavorable/underapplied.) Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance
The following data relates to Koontz Corporation's operations for the month. 1,000 finished units of product were produced and the normal monthly capacity is 2,200 direct labor hours. Standard Total Unit Actual Costs Costs Direct Material: Standard (2 lb. @ $10/lb.) Actual (2,200 lb. @ $9.80/lb.) Direct Labor: Variable Overhead: Standard (2 hr. @ $20/hr.) Actual (2,400 hrs. @ $20.20/hr.) Total What is the labor rate variance? Standard (0.5 hr. @ $4/hr.) Actual Select one: O O O O b. a. 400 U $400 F C. $480 U d. $480 F e. None of the above $20 $40 $2 $21,560 $48,480 $8,700 $62 $78,740
Use the following information to answer items #31-#34:Standard Company has developed standard manufacturing overhead costs based on a capacity of 180,000 direct labor-hours (DLHS) as follows: Standard overhead costs per unit: Variable portion (2 DLH @ P3.00/DLH Fixed portion (2 DLH @ P5.00/DLH 10.00 The following data pertain to operations in April: Actual Output P 6.00 80,000 units Actual direct labor cost P 644.000 Actual direct labor hours worked 165,000 DLHS P 518,000 P 860,000 Variable overhead cost incurred Fixed overhead cost incurred 31. The variable overhead spending variance for April was:
Valera Corporation makes a product with the following standards for labor and variable overhead: Direct labor Variable overhead Standard Quantity Standard Price or Standard Cost Per or Hours 0.4 hours 0.4 hours Rate $21.00 per hour. $ 6.00 per hour Unit $8.40 $2.40 The company budgeted for production of 5,300 units in July, but actual production was 5,400 units. The company used 2,130 direct labor-hours to produce this output. The actual variable overhead rate was $6.10 per hour. The company applies variable overhead on the basis of direct labor-hours. The variable overhead rate variance for July is:
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The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factory overhead cost to outputs: Actual total factory overhead cost incurred $ 31,000 Actual fixed overhead cost incurred $ 12,000 Budgeted fixed overhead cost $ 14,000 Actual machine hours 4,000 Standard machine hours allowed for the units manufactured 5,200 Denominator volume—machine hours 4,500 Standard variable overhead rate per machine hour $ 3 The total actual variable factory overhead cost incurred during the year was: Multiple Choice $19,000. $20,000. $18,000. $19,400. $19,100.
A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours. Standard hours per unit of output Standard variable overhead rate 4.90 DLHS $11.55 per DLH The following data pertain to operations for the last month: Actual direct labor-hours Actual total variable manufacturing overhead cost Actual output 8,400 DLHS $95,960 1,600 units What is the variable overhead efficiency variance for the month? Multiple Cholce S6,468 U $6.773 F ( Prev 10 of 10 IMc Graw Hill 10:56 AM 92 F AQI 61 10/5/2021 Type here to search DELL PgDn Home F12 PrtScr Insert Delete F9 F10 F11 F7 F8 F2 F3 F4 F5 F6 F1 Lock Backspace
BettaFish Inc. applies factory overhead as follows: * Department Per Machine Hour Fabricating Spreading Packaging PI0 P20 P30 Actual machine hours are: Fabricating- 2,000 hours Spreading - 1,500 hours Packaging - 3,000 hours The following additional data are provided: a. The actual factory overhead expense for the period is P100,000. b. The ending balances of the inventories and cost of goods sold after the application of overhead are as follows: Raw Materials Work in Process Finished Goods Cost of goods sold c. The over/(under) applied overhead during the period is considered material if at least 30% of actual factory overhead, 200,000 100,000 400,000 500,000 What is the adjusted cost of goods sold after closing the under/ over application of factory overhead?
The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factory overhead cost to outputs: Actual total factory overhead cost incurred $ 31,000 Actual fixed overhead cost incurred $ 12,000 Budgeted fixed overhead cost $ 14,000 Actual machine hours 4,000 Standard machine hours allowed for the units manufactured 5,200 Denominator volume—machine hours 4,500 Standard variable overhead rate per machine hour $ 3 The standard fixed overhead application rate, to two (2) decimal places, is: A. $5.11 per machine hourB. $2.11 per machine hourC. $4.11 per machine hourD. $3.11 per machine hourE. $6.11 per machine hour
The following data relates to Titan Electric and its Light Bulb Division. Light Bulb Division sales Light Bulb Division operating income Light Bulb Division total assets Light Bulb Division current liabilities Corporate target rate of return Corporate weighted average cost of capital Corporate effective tax rate What is the Light Bulb Division's sales margin? OA. 180% OB. 18% OC. 13.5% OD. 10% $7,200,000 $720,000 $4,000,000 $540,000 12% 5% 25%