The following information relates to Steele Manufacturing's overhead costs for the month: $35,600 Static budget variable overhead Static budget fixed overhead Static budget direct labor hours $15,200 14,300 hours 5,500 units Static budget number of units Steele allocates variable manufacturing overhead to production based on standard direct labor hours. Steele reported the following actual results for last month: actual variable overead, $35,100; actual fixed overhead, $15,000; actual production of 5,400 units at 2.2 direct labor hours per unit. The standard direct labor time is 2.6 direct labor hours per unit. Compute the variable overhead efficiency variance. (Round the answer to the nearest dollar.) OA. $4,831 U OB. $5,378 F C. $5,378 U OD. $4,831 F

The following information relates to Steele Manufacturing's overhead costs for the month: $35,600 Static budget variable overhead Static budget fixed overhead Static budget direct labor hours $15,200 14,300 hours 5,500 units Static budget number of units Steele allocates variable manufacturing overhead to production based on standard direct labor hours. Steele reported the following actual results for last month: actual variable overead, $35,100; actual fixed overhead, $15,000; actual production of 5,400 units at 2.2 direct labor hours per unit. The standard direct labor time is 2.6 direct labor hours per unit. Compute the variable overhead efficiency variance. (Round the answer to the nearest dollar.) OA. $4,831 U OB. $5,378 F C. $5,378 U OD. $4,831 F

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 company estimates its manufacturing overhead will be $630,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? When required, round your answers to nearest cent. A. Budgeted direct labor hours: 72,000 $______ per direct labor hour B. Budgeted direct labor expense: $1,800,000 $_____ per direct labor dollar C. Estimated machine hours: 120,000 $_____ per machine hour
Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year: Overhead Item Expected Cost Cost Driver Expected Quantity Setup costs $ 59,500 Number of setups 250 Ordering costs 49,000 Number of orders 1,500 Maintenance 138,000 Machine hours 2,000 Power 29,500 Kilowatt hours 4,000 Total Overhead $ 276,000 Total direct labor hours budgeted = 2,000 hours. The following actual data applies to one of the products completed during the year: Product X Direct materials $ 6,900 Number of setups 5 Direct labor $ 4,900 Number of orders 50 Units completed 100 Machine hours 50 Direct labor hours 100 Kilowatt hours 500 If Orange, Inc. uses machine hours to allocate overhead cost, the unit product cost of Product X will be: Multiple Choice $117.00. $137.00 $147.00 $167.00. $187.00.
In October, Pine Company reports 19,400 actual direct labor hours, and it incurs $122,380 of manufacturing overhead costs Standard hours allowed for the work done is 21,100 hours. The predetermined overhead rate is $5.75 per direct labor hour. Compute the total overhead variance Total Overhead Variance
The following information relates to Steele Manufacturing's overhead costs for the month: Static budget variable overhead $35,900 Static budget fixed overhead $15,600 Static budget direct labor hours 15,400 hours Static budget number of units 5,500 units Steele allocates variable manufacturing overhead to production based on standard direct labor hours. Steele reported the following actual results for last month: actual variable overhead, $35,400;actual fixed overhead, $15,400; actual production of 5,400 units at 2.4 direct labor hours per unit. The standard direct labor time is 2.8 direct labor hours per unit. Compute the variable overhead efficiency variance. (Round the answer to the nearest dollar.) A. $4,474 U B. $5,033 U C. $4,474 F D. $5,033 F
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A company's budgeted varlable manufacturing overhead cost Is $1.05 per machine-hour and Its budgeted fixed manufacturing overhead Is $27,094 per month. The following information is avallable for a recent month: a. The denominator activity of 8,740 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 8.740 machine-hours, the company should produce 3,800 unlts of product. C. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual fixed manufacturing overhead cost 4,220 10,050 $12,060.00 $26,400.00 Required: 1. Compute the predetermined overhead rate and break It down Into varlable and fixed cost elements. (Round your answers to 2 declmal places.) 2. Compute the standard hours allowed for the actual production. 3. Compute the varlable overhead rate and efficlency varlances and the fixed overhead budget and volume varlances. (Indicate the effect of each…
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The following information relates to the Finishing department of Tom company for the fourth quarter: Total actual overhead, P178,500; Budgeted allowance formula, P110,000 plus P0.50 per direct labor hour; Predetermined factory overhead rate, P1.50 per direct labor hour; Spendi8ng variance, P8,000 unfavorable; Efficiency variance, P9,000 unfavorable. The total factory overhead is divided into three variances- spending, idle capacity and efficiency. Compute for the actual direct labor hours worked in the finishing department during the fourth quarter.
The following labor standards have been established for a particular product: Standard labor-hours per unit of output 8.7 hours Standard labor rate $12.50 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 6,500 hours Actual total labor cost $78,650 Actual output 900 units What is the labor efficiency variance for the month? Multinl e CholcA
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Horn Industries uses a standard cost accounting system and applies manufacturing overhead based on machine hours. Here are data regarding Horn's production activity for the month of July: Actual variable manufacturing overhead costs Actual machine hours Variable manufacturing overhead rate variance Variable manufacturing overhead spending variance O 1,450 hours For purposes of applying manufacturing overhead to work in process inventory, what are the standard hours allowed for July? O 1,500 hours 1,650 hours O 1,700 hours $11,312 1,600 hours None of the above $1,712 unfavorable $2,312 unfavorable
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