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The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Cost Formula (per machine- hour) $1.50 Overhead Costs Variable cost Fixed cost Total overhead cost Number of units produced Actual machine-hours Actual variable overhead costs Actual fixed overhead costs The following information is available for a recent period: a. The denominator activity of 9,000 machine-hours was chosen to compute the predetermined overhead rate. b. At the 9,000 standard machine-hours level of activity, the company should produce 4,500 units of product. c. The company's actual operating results were as follows: Variable rate Fixed rate Predetermined overhead rate 4,800 9,000 $13,940 $ 21,000 Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. (Round your answers to 2 decimal places.) Answer is complete and correct. S per MH Machine-Hours per MH 9,000 10,000 11,000 $13,500 $15,000 $16,500 20,700 20,700 20,700 $34,200 $35,700 $37,200 per MH

The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Cost Formula (per machine- hour) $1.50 Overhead Costs Variable cost Fixed cost Total overhead cost Number of units produced Actual machine-hours Actual variable overhead costs Actual fixed overhead costs The following information is available for a recent period: a. The denominator activity of 9,000 machine-hours was chosen to compute the predetermined overhead rate. b. At the 9,000 standard machine-hours level of activity, the company should produce 4,500 units of product. c. The company's actual operating results were as follows: Variable rate Fixed rate Predetermined overhead rate 4,800 9,000 $13,940 $ 21,000 Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. (Round your answers to 2 decimal places.) Answer is complete and correct. S per MH Machine-Hours per MH 9,000 10,000 11,000 $13,500 $15,000 $16,500 20,700 20,700 20,700 $34,200 $35,700 $37,200 per MH

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Cost Formula (per machine- hour) $1.50 Variable cost Fixed cost Total overhead cost Overhead Costs The following information is available for a recent period: a. The denominator activity of 9,000 machine-hours was chosen to compute the predetermined overhead rate. b. At the 9,000 standard machine-hours level of activity, the company should produce 4,500 units of product. c. The company's actual operating results were as follows: Number of units produced Actual machine-hours Actual variable overhead costs Actual fixed overhead costs Variable rate Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. (Round your answers to 2 decimal places.) Predetermined overhead rate Fixed rate Answer is complete and correct. $ 4,800 9,000 $13,940 $ 21,000 $ .. er per MH Machine-Hours 9,000 10,000 11,000 $13,500 $15,000 $16,500 20,700 20,700 20,700 $34,200 $35,700 $37,200 per MH per MH
Transcribed Image Text:The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Cost Formula (per machine- hour) $1.50 Variable cost Fixed cost Total overhead cost Overhead Costs The following information is available for a recent period: a. The denominator activity of 9,000 machine-hours was chosen to compute the predetermined overhead rate. b. At the 9,000 standard machine-hours level of activity, the company should produce 4,500 units of product. c. The company's actual operating results were as follows: Number of units produced Actual machine-hours Actual variable overhead costs Actual fixed overhead costs Variable rate Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. (Round your answers to 2 decimal places.) Predetermined overhead rate Fixed rate Answer is complete and correct. $ 4,800 9,000 $13,940 $ 21,000 $ .. er per MH Machine-Hours 9,000 10,000 11,000 $13,500 $15,000 $16,500 20,700 20,700 20,700 $34,200 $35,700 $37,200 per MH per MH
2. What were the standard hours allowed for the year's actual output? (Do not round intermediate calculations.) Answer is complete and correct. Standard hours for actual production 3. Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances. (Do not round intermediate calculations. Round your answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) > Answer is complete but not entirely correct. Variable overhead spending variance Variable overhead efficiency variance Fixed overhead budget variance Fixed overhead volume variance MMHs $ $ $ ****
Transcribed Image Text:2. What were the standard hours allowed for the year's actual output? (Do not round intermediate calculations.) Answer is complete and correct. Standard hours for actual production 3. Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances. (Do not round intermediate calculations. Round your answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) > Answer is complete but not entirely correct. Variable overhead spending variance Variable overhead efficiency variance Fixed overhead budget variance Fixed overhead volume variance MMHs $ $ $ ****
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