The Jaguar Company, which manufactures electrical switches, uses a standard costing system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below: Variable MOH (5 hours @ $12 per DMfgL hour) Fixed MOH (5 hours @ $15* per DMfgL hour) Total MOH per switch *Based on a capacity of 200,000 DMfgL hours per month The following information is available for the month of October: 46,000 switches were produced, although 40,000 switches were scheduled to be produced. > 225,000 DMfgL hours were worked at a total cost of $5,625,000. Actual variable MOH costs were $2,750,000. Actual fixed MOH costs were $3,050,000. $ 60 75 $135 1. Compute the variable MOH spending, efficiency, and flexible-budget variances, and the allocated variable MOH costs.

The Jaguar Company, which manufactures electrical switches, uses a standard costing system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below: Variable MOH (5 hours @ $12 per DMfgL hour) Fixed MOH (5 hours @ $15* per DMfgL hour) Total MOH per switch *Based on a capacity of 200,000 DMfgL hours per month The following information is available for the month of October: 46,000 switches were produced, although 40,000 switches were scheduled to be produced. > 225,000 DMfgL hours were worked at a total cost of $5,625,000. Actual variable MOH costs were $2,750,000. Actual fixed MOH costs were $3,050,000. $ 60 75 $135 1. Compute the variable MOH spending, efficiency, and flexible-budget variances, and the allocated variable MOH costs.

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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