ADDITIONAL INFO: OVERHEAD- ACTUAL COSTSvariable overhead: 101,000fixed overhead: 68,000 OVERHEAD- STANDARD COSTS variable overhead- $12 per hour , 2 hours per unit.fixed overhead - 6 per hour , 2 hours per unit. ACTUAL UNITS MANUFATURED: 5,100 units Songsu Company is struggling to control costs. We are hired as consultants to determine why the company's actual costs exceedbudgeted costs. The Tableau Dashboard is provided for our analysis.8642 H0Rate Per HourHours Per Unit4 lbsPounds PerUnitDirect MaterialsStandard$20$15$10$5$08 hrs6 hrs4 hrs2 hrs0 hrs$6Price PerPound6 lbsFixed OverheadActualOverhead - Standard CostsPounds PerUnit$7Price PerPound6969Variable Overhead151050Standard2 hrsDirect LaborHours PerUnit$17Price PerHourVariable OverheadActual Units ManufacturedActual2.5 hrsHours PerUnitOverhead - Actual Costs$169,000$14Price PerHourFixed Overhead 邨+ableauAQ = Actual QuantitySQ = Standard QuantityAR= Actual RateSR Standard RateAP = Actual PriceSP Standard PriceAQActual Cost1. & 2. Compute the direct materials price variance and direct materials quantity variance. Indicate whether this cost variance isfavorable, unfavorable or no variance.XXActual Units ManufacturedAR$0$AQ00XX→SP0POSQStandard CostXSP

Direct material price variance = (AQ x SR) - (AQ x AR)…

Songsu Company is struggling to control costs. We are hired as consultants to determine why the company's actual costs exceed budgeted costs. The Tableau Dashboard is provided for our analysis. 8 6 d N Direct Materials Standard 4 lbs Pounds Per Unit $6 Price Per Pound 6 lbs Actual Pounds Per Unit $7 Price Per Pound 15 10 5 0 Standard 2 hrs Direct Labor Hours Per Unit $17 Price Per Hour Actual 2.5 hrs Hours Per Unit $14 Price Per Hour

Songsu Company is struggling to control costs. We are hired as consultants to determine why the company's actual costs exceed budgeted costs. The Tableau Dashboard is provided for our analysis. 8 6 d N Direct Materials Standard 4 lbs Pounds Per Unit $6 Price Per Pound 6 lbs Actual Pounds Per Unit $7 Price Per Pound 15 10 5 0 Standard 2 hrs Direct Labor Hours Per Unit $17 Price Per Hour Actual 2.5 hrs Hours Per Unit $14 Price Per Hour

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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Arbor, Inc. has estimated overhead to be $315,000 and labor hours to be 35,000. Actual overhead turned out to be $325,000 when 35,500 labor hours were worked. The predetermined overhead rate would be: Multiple Choice 82.39%. $9.00. $9.15. $9.29.
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Computing Overhead using Activity Based Costing; Company A: Estimated Annual Overhead: $950,000 Overhead Allocated to Cost Pools: Machine Setups: 22%; Machining: 68%; Inspections: 10%; **Overhead Rate - Round to hundredths Cost Pools Machine Setups Machining # of Setups Machine Hours Cost Drivers Overhead Allocated to Cost Pools Expected Use of Drivers Overhead Rate per Driver 3200 Inspections # of Inspections 50,000 4000 Use of Drivers Use of Drivers Cost Drivers Product A Product B Overhead Allocated to Product A Overhead Allocated to Product B # of Setups 1100 2100 Machine Hours 32,000 # of Inspections 2800 18,000 1200 Total Overhead Applied to Products Units Produced: Product A: 45,000; Product B: 80,000 **Round to nearest hundredth** Overhead Cost per Unit: Product A: Product B: $75.00 DM per unit: $18.50
Travelcraft Company manufactures a complete line of fiberglass suitcases and attaché cases. The firm has three manufacturing departments: Molding, Component, and Assembly. There are also two service departments: Power and Maintenance. The sides of the cases are manufactured in the Molding Department. The frames, hinges, and locks are manufactured in the Component Department. The cases are completed in the Assembly Department. Varying amounts of materials, time, and effort are required for each of the cases. The Power Department and Maintenance Department provide services to the three manufacturing departments. Travelcraft has always used a plantwide overhead rate. Direct-labor hours are used to assign overhead to products. The predetermined overhead rate is calculated by dividing the company's total estimated overhead by the total estimated direct-labor hours to be worked in the three manufacturing departments. Karen Mason, director of cost management, has recommended that Travelcraft…
Antuan Company set the following standard costs for one unit of its product. Direct materials (5.0 Ibs. @ $5.00 per Ib.) $ 25.00 Direct labor (1.9 hrs. @ $12.00 per hr.) 22.80 Overhead (1.9 hrs. @ $18.50 per hr.) 35.15 Total standard cost $ 82.95 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume 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 $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 45,000 Total variable overhead costs $ 150,000 Fixed overhead costs Depreciation—Building 24,000 Depreciation—Machinery 71,000 Taxes and insurance 17,000 Supervision 265,250 Total fixed overhead costs 377,250…
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Direct labor 17 per unit 11 per unit 24 Direct materials $4 Overhead Total variable overhead Total fixed overhead Expected units to be produced $ 30,000 $100, 000 50,e00 units Product cost per unit under absorption costing
Direct material (30 pounds @ $2.60 per pound) Direct labor (20 hours @ $4,70 per DLH) Variable overhead (20 hours e $2.60 per DLH) Fixed overhead (20 hours @ $1.20 per DLH) Standard cost per unit $ 78.00 94.00 52.00 24.00 $ 248.00 The $3.80 ($2.60 + $1.20) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 36,600 units, which is 60% of the factory's capacity of 61,000 units per month. The following monthly flexible budget information is avallable. Operating Levels (X of capacity) 55% 33,550 671,000 Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted averhead Variable overhead Fixed overhead Total overhead 60% 36,600 732,000 65% 39,650 793,000 $ 1,744,600 878,400 $ 2,623,000 $ 1,903, 200 878,400 $ 2,781,600 $ 2,061,800 878, 400 $ 2,940, 200 During the current month, the company operated at 55% of capacity, direct labor of 652,000 hours were used, and the following actual overhead costs were incurred. Actual…
The standard cost sheet for a product is shown. Standard Cost Manufacturing Costs Standard price Standard Quantity per unit Direct materials $4.50 per pound 5.70 pounds $ 25.65 Direct labor $11.87 per hour 2.00 hours $ 23.74 Overhead $2.20 per hour 2.00 hours $ 4.40 $ 53.79 The company produced 3,000 units that required: 17,600 pounds of material purchased at $4.35 per pound • 5,910 hours of labor at an hourly rate of $12.17 per hour • Actual overhead in the period was $13,540 Fill in the Budget Performance Report for the period. Some amounts are provided. Round your answers to the ne Budget Performance Report Variance Manufacturing Costs: Actual Standard (Favorable)/ 3,000 units Costs Costs Unfavorable Direct materials $76,560 Direct labor 71,220 Overhead 13,540 $655
/ext/map/index.html?_con=con&external_browser=0&launchU Direct materials (30 pounds @ $5.10 per pound) Direct labor (4 hours @ $15 per hour) Variable overhead (4 hours @ $6 per hour) Fixed overhead (4 hours $11 per hour) Standard cost per unit $ 153.00 60.00 24.00 44.00 $ 281.00 Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the company's capacity of 68,000 units per quarter. The following additional information is available. Production (in units) Budgeted overhead (flexible budget) Standard direct labor hours (4 DLH per unit) Fixed overhead Variable overhead Operating Levels 70% 80% 98% 47,600 190,400 54,400 217,600 61,200 244,800 $ 2,393,600 $ 2,393,600 $2,393,600 $ 1,142,400 $ 1,305,600 $ 1,468,800 During the current quarter, the company operated at 90% of capacity and produced 61,200 units; actual direct labor totaled 239,800 hours. Units produced were assigned the following standard costs. Direct materials…
Cost per Equivalent Unit The cost of direct materials transferred into the Rolling Department of Oak Ridge Steel Company is $462,800. The conversion cost for the period in the Rolling Department is $286,700. The total equivalent units for direct materials and conversion are 2,600 tons and 4,700 tons, respectively. Determine the direct materials and conversion costs per equivalent unit. Direct materials cost per equivalent unit: $fill in the blank 1 per ton Conversion cost per equivalent unit: $fill in the blank 2 per ton
Service Department Cost Allocation Overhead rate per hour, etching: $10.602 (rounded) Maintenance department costs allocated to finishing: $87,111Using Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production departments, Etching and Finishing. The Etching Department employs 20 people, and the Finishing Department employs 80 people. Each person in these two departments works 2,000 hours per year. The production-related overhead costs for the Etching Department are budgeted at $200,000, and the Finishing Department costs are budgeted at $320,000. Two service departments, Maintenance and Computing, directly support the two production departments. These service departments have budgeted costs of $48,000 and $250,000, respectively. The production departments’ overhead rates cannot be determined until the service departments’ costs are allocated. The following schedule reflects the use of the Maintenance Department’s and…