Straightforward coverage of manufacturing overhead, standard-costing system. The Brazil division of an American telecommunications company uses standard costing for its machine-paced production of telephone equipment. Data regarding production during June are as follows: $537,470 $7 per standard machine-hour $146,101 $136,000 Variable manufacturing overhead costs incurred Variable manufacturing overhead cost rate Fixed manufacturing overhead costs incurred Fixed manufacturing overhead costs budgeted Denominator level in machine-hours 68,000 1.2 66,500 Standard machine-hour allowed per unit of output Units of output Actual machine-hours used 75,700 Ending work-in-process inventory

Straightforward coverage of manufacturing overhead, standard-costing system. The Brazil division of an American telecommunications company uses standard costing for its machine-paced production of telephone equipment. Data regarding production during June are as follows: $537,470 $7 per standard machine-hour $146,101 $136,000 Variable manufacturing overhead costs incurred Variable manufacturing overhead cost rate Fixed manufacturing overhead costs incurred Fixed manufacturing overhead costs budgeted Denominator level in machine-hours 68,000 1.2 66,500 Standard machine-hour allowed per unit of output Units of output Actual machine-hours used 75,700 Ending work-in-process inventory

Name: Q.Prepare journal entries for manufacturing overhead costs and their v
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Description: Q.Prepare journal entries for manufacturing overhead costs and their variances Straightforward coverage of manufacturing overhead, standard-costing system. The Brazil divisionof an American telecommunications company uses standard costing for its mac

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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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Q.Prepare journal entries for manufacturing overhead costs and their variances

Straightforward coverage of manufacturing overhead, standard-costing system. The Brazil division
of an American telecommunications company uses standard costing for its machine-paced production of
telephone equipment. Data regarding production during June are as follows:
$537,470
$7 per standard machine-hour
$146,101
$136,000
Variable manufacturing overhead costs incurred
Variable manufacturing overhead cost rate
Fixed manufacturing overhead costs incurred
Fixed manufacturing overhead costs budgeted
Denominator level in machine-hours
68,000
1.2
66,500
Standard machine-hour allowed per unit of output
Units of output
Actual machine-hours used
75,700
Ending work-in-process inventory

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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