The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What is the variable overhead efficiency variance for the month?

The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What is the variable overhead efficiency variance for the month?

Name: The following standards for variable manufacturing overhead have been
Uploaded: 2024-03-20T06:33:06.000Z
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Description: The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What is the variable overhead efficiency variance for the mont

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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Using Fixed Overhead Variances The standard cost card for the single product manufactured by Cutter. Inc., is given below: Manufacturing overhead is applied to production on the basis of standard direct labor-hours. During the year, the company worked 37,000 hours and manufactured 9,500 units of product. Selected data relating to the company’s fixed manufacturing overhead cost for the year are shown below: Required: 1. What were the standard hours allowed for the year’s production? 2. What was the amount of budgeted fixed overhead cost for the year? 3. What was the fixed overhead budget variance for the year? 4. What denominator activity level did the company use in setting the predetermined overhead rate for the year?
Prepare an income statement for management for the month ended January 31, 2020 with the given information: Neo industries uses a standard costing accounting system. During August, it reported the following manufacturing variances. Materials price Labor quantity variance 1,220 variance 840 U Materials quantity variance 760 F Overhead variance 740 U Labor price variance 450 In addition, 8,100 units of product were sold at 7 per unit. Each unit sold had a standard cost of 4. Selling and administrative expenses were 7,890 for the month.
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The fixed factory overhead application rate is a function of a predetermined activity level. If standard hours allowed for actual output equal this predetermined activity level for a given period, the volume variance will be:
Predetermined Overhead Rates, Overhead Variances, Unit Costs Primera Company produces two products and uses a predetermined overhead rate to apply overhead. Primera currently applies overhead using a plantwide rate based on direct labor hours. Consideration is being given to the use of departmental overhead rates where overhead would be applied on the basis of direct labor hours in Department 1 and on the basis of machine hours in Department 2. At the beginning of the year, the following estimates are provided: Department 1 Department 2 Direct labor hours 640,000 128,000 Machine hours 16,000 192,000 Overhead cost $384,000 $1,152,000 Actual results reported by department and product during the year are as follows: Department 1 Department 2 Direct labor hours 627,200 134,400 Machine hours 17,600 204,800 Overhead cost $400,000 $1,232,000 Product 1 Product 2…
Wilms, Inc. uses a standard cost system. Overhead cost information for product A for the month of November is as follows: Total actual overhead incurred, P12,600 Fixed overhead budgeted, P3,300 Total standard overhead rate per direct labor, P4.00 Variable overhead rate per direct labor hour, P3.00 Standard hours allocated for actual production, 3,500 What is the overall (or net) overhead variance? A.P1.400 unfavorable B.P1.200 unfavorable C.P1,200 favorable D.P1,400 favorable
The following labor standards have been established for a particular product Standard labor hours per unit of output Standard labor rate 4.3 hours $ 20.10 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked Actual total labor cost Actual output 6,900 hours $ 139,380 1,500 units Required: a. What is the labor rate variance for the month? b. What is the labor efficiency variance for the month? Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (Le zero variance). Input all amounts as positive values. a. Labor rate variance. b. Labor efficiency variance
A. Show the solution for each. Compute in details the Variable Manufacturing Overhead Variances - Spending and Efficiency. B. Show the solution for each. Compute in details the Fixed Manufacturing Overhead Variances - Budget and Volume.
1. Calculate the following variances for April, indicating whether each is favourable orunfavourable:(a) direct labour rate variance for each labour class.(b) direct labour efficiency variance for each labour class.2. Discuss two advantages and two disadvantages of a standard costing system in which thestandard direct labour rates per hour are not changed during the year to reflect events suchas a new labour contract
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What is tha manufacturing overhead rate variance in march...??