Swifty Corporation accumulates the following data relative to jobs started and finished during the month of June 2022.Costs and Production DataRaw materials unit costRaw materials unitsDirect labor payrollDirect labor hoursManufacturing overhead incurredManufacturing overhead appliedMachine hours expected to be used at normal capacityBudgeted fixed overhead for JuneVariable overhead rate per machine hourFixed overhead rate per machine hourActualStandard$4.10$4.0011,00010,600$149,000$142,88014,90015,200$178,700$182,40046,600$46,600$3.00$1.00Overhead is applied on the basis of standard machine hours. 3.00 hours of machine time are required for each direct labor hour. Thejobs were sold for $488,000. Selling and administrative expenses were $35,600. Assume that the amount of raw materials purchasedequaled the amount used.Compute the overhead controllable variance and the overhead volume variance.Overhead controllable variance50300FavorableOverhead volume variance$31400Unfavorable

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Answered: Swifty Corporation accumulates the…

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.] Delph Company uses job-order costing with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 53,000 machine-hours would be required for the period's estimated level of production. It also estimated $1,080,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabrication-it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following information to enable calculating departmental overhead rates: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Job D-70 Direct materials cost Direct labor cost Machine-hours During the year, the company had no beginning or…
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