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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Tat Manufacturing Corporation uses a standard cost system with machine-hours as the activity base for overhead. The following information relates to production for last year. Variable Fixed Total budgeted overhead (at the denominator level of activity) Total applied overhead $ 432,000 $ 684,000 $ 410,400 $ 649,800 $ 456,000 $ 655,500 Total actual overhead The standard machine-hours allowed for the actual output during the year were 7,600. The actual machine-hours incurred were 7,500. 11 What was Taft's variable overhead efficiency variance? A. 2$ 21,600 Favorable B. $ 51,000 Unfavorable 6998 2$ 2$ $ 45,600 Unfavorable С. 5,400 Favorable D. E. None of the above 750 12 Hoover Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHS). Hoover's total applied factory overhead was $315,000 last year when the standard DLHS for the actual output were 30,000 hours. The standard variable factory…
Privack Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted variable overhead cost per direct labor-hour $ 4.00 Total budgeted fixed overhead cost per year $ 528,180 Budgeted direct labor-hours (denominator level of activity) 75,455 Actual direct labor-hours 84,000 Standard direct labor-hours allowed for the actual output 81,000 Required: 1. Compute the predetermined overhead rate for the year. Be sure to include the total budgeted fixed overhead and the total budgeted variable overhead in the numerator of your rate. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) 2. Compute the amount of overhead that would be applied to the output of the period. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Terrell Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Variable manufacturing overhead O $46 U $2.30 per hour The company has reported the following actual results for the product for July: Actual output Actual direct labor-hours Actual variable overhead rate S 2.10 per hour Actual variable overhead cost $ 4,998 The variable overhead efficiency variance for the month is closest to: $42 F Standard Quantity or Hours per Unit of Output O $46 F O $42 U Standard Price or Rate 0.30 hours 8,000 units 2,380 hours
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Craftmore Machining reports the following budgeted overhead cost and related data for this year. Activity Budgeted Cost Activity Cost Driver Budgeted Activity Usage Assembly $ 399,750 Direct labor hours (DLH) 13,000 Product design 61,500 Engineering hours (EH) 1,230 Electricity 20,500 Machine hours (MH) 10,000 Setup 51,250 Setups 410 Total $ 533,000 Required:1. Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours.2. Job 31 used 240 direct labor hours and Job 42 used 520 direct labor hours. Allocate overhead cost to each job using the single plantwide overhead rate from part 1.3. Compute an activity rate for each activity using activity-based costing.4. Allocate overhead costs to Job 31 and Job 42 using activity-based costing. Activity Cost Driver Activity Usage Job 31 Job 42 Direct labor hours (DLH) 240 520 Engineering hours (EH) 27 33 Machine hours (MH) 60 60 Setups 5 7
Happy Valley Pet Products uses a standard costing system that applies overhead to products based on standard direct labour-hours allowed for actual output of the period. During the recent year, the following data were collected: Total budgeted fixed overhead cost for the year Budgeted standard direct labour-hours Actual fixed overhead cost for the year Actual direct labour-hours Standard direct labour-hours allowed for the actual output $63,450 $60,950 14,100 15,300 12,600 Required. 1. Compute the fixed portion of the predetermined overhead rate for the year. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH 2. Compute the fixed overhead budget and volume variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Fixed overhead budget variance Fixed overhead volume variance
Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September: Standards Direct materials Direct labor Variable overhead (per direct labor- $ 22.60 hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual resulta Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual) pounds at 0.75 $9.40 per pound hours at 1.25 $27.40 per hour K4 $ 418,080 17,420 pounds at 11,000 $8.80 per pound hours at 14,870 $27.70 per hour $ 359,060 $ 393,740 12,340 units X7 pound at 1 $10.00 per pound 1.50 $24.40 $ 494,970 23,570 hours at $30 per hour pounds at 14,270 $10.30 per pound hours at 22,370 $34.00 per hour $ 471,212 $ 491,960 14,570 units Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product. Note: For all requirements, Do not round…
Coronado Corporation accumulates the following data relative to jobs started and finished during the month of June 2022. Costs and Production Data Raw materials unit cost Raw materials units Direct labor payroll Direct labor hours Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted fixed overhead for June Variable overhead rate per machine hour Fixed overhead rate per machine hour Overhead controllable variance $ Overhead volume variance Actual $ $4.40 11,000 $177,600 14,800 $242,800 Standard $4.30 10,100 $174,420 15,300 Overhead is applied on the basis of standard machine hours. 3.20 hours of machine time are required for each direct labor hour. The jobs were sold for $475,000. Selling and administrative expenses were $40,100. Assume that the amount of raw materials purchased equaled the amount used. Compute the overhead controllable variance and the overhead volume variance. $244,800 49,960 $89,928 $3.20 $1.80…
Avery Company uses a predetermined overhead rate based on direct labor hours. For the month of October, Avery’s budgeted overhead was P300,000 based on a budgeted volume of 100,000 direct labor hours. Actual overhead amounted to P325,000 with actual direct labor hours totaling 110,000. Compute for the following: __________17. Predetermined overhead rate __________18. Factory overhead charged to Work in Process account __________19. Under / (Over) applied factory overhead __________20 - 22. Assume the following amounts of applied FOH in each account. Allocate the under / over applied to these three accounts: Cost of Goods sold P200,000 Ending Finished Goods inventory 100,000 Ending Work in Process inventory 30,000 The following information relates to Wal-Mart Corporation for the past accounting period Cost Direct Center Cost Proportion of…