The Malcolm Company stands tam in which隐manufacturing overhead costs are applied to products on the basisof standard direct labor-lasers (DH). The standards call for hous* dem lahere is Theong de pertain to thecompany's manufacturing overhead for the month of July:mulcturing overhead cost.$28.440incurredDenuminator activity6.325DLHSNumber of units produced3,800 unitsunitsBudget variance$3,140 UnfavorableWhat is the fixed component of the predetermined overhead ratefor June?(Round your answer to 2 decimal places.)a. $4.00b. 54.77c. $4.11d. $4.30

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Answered: The Malcolm Company stands tam in which…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: The standard price paid per pound of direct materials is 1.60. The standard rate for labor is 8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows: The company expects to work 12,000 direct labor hours during the year; standard overhead rates are computed using this activity level. For every small stapler produced, the company produces two regular staplers. Actual operating data for the year are as follows: a. Units produced: small staplers, 35,000; regular staplers, 70,000. b. Direct materials purchased and used: 56,000 pounds at 1.5513,000 for the small stapler and 43,000 for the regular stapler. There were no beginning or ending direct materials inventories. c. Direct labor: 14,800 hours3,600 hours for the small stapler and 11,200 hours for the regular stapler. Total cost of direct labor: 114,700. d. Variable overhead: 607,500. e. Fixed overhead: 350,000. Required: 1. Prepare a standard cost sheet showing the unit cost for each product. 2. Compute the direct materials price and usage variances for each product. Prepare journal entries to record direct materials activity. 3. Compute the direct labor rate and efficiency variances for each product. Prepare journal entries to record direct labor activity. 4. Compute the variances for fixed and variable overhead. Prepare journal entries to record overhead activity. All variances are closed to Cost of Goods Sold. 5. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both products. Can you compute the total direct materials and direct labor usage variances? Explain.
Overhead application rate Creole Manufacturing Inc. uses a job order cost system and standard costs. It manufactures one product, whose standard cost follows: The standards are based on normal capacity of 2,400 direct labor hours. Actual activity for October follows: Required: 1. Compute the variable and fixed factory overhead rates per unit. 2. Compute the variable and fixed overhead rates per direct labor hour. 3. Determine the total fixed factory overhead based on normal capacity.
Making journal entries Assume that during the month of April the production report of Algonquin Adhesives Inc. in E8-10 revealed the following information: Make journal entries to charge materials (use the materials purchase price variance) and labor to Work in Process. (Remember to retrieve the standard costs from E8-10 before solving this exercise.)
The Malcolm Company stands tam in which manufacturing overhead costs are applied to product on the bails of standard direct labor-laters (DH). The standards call for 4 hous lationer is. The long da pertain to the 然 company's manufacturing overhead for the month of July: aufacturing overhead costi incurred Denuminator activity Number of units produced $28.440 6.325 DLHS 3,800 units $3,140 Unfavorable W Budget variance What is the fixed component of the predetermined overhead rate for June? (Round your answer to 2 decimal places.) a. $4.00 b. 54.77 c. $4.11 d. $4.30
Jaguar Company uses a standard cost system. The following information pertains to direct labor for product B for the month of October: Standard hours allowed for actual production Actual rate paid per hour Standard rate per hour DL Efficiency Variance What were the actual hours worked? O 1,800 O 2,810 O 3,200 O 3,190 3,000 $8.40 $8.00 $1,600 U
- ok k int ences w 3 E Overhead information for Cran-Mar Company for October follows: Total factory overhead cost incurred Budgeted fixed factory overhead cost Total standard overhead rate per machine hour (MH) D Standard variable factory overhead rate per MH Standard MHS allowed for the units manufactured here to search Required: 1. What is the standard fixed factory overhead rate per machine hour (MH)? 2. What is the denominator activity level that was used to establish the fixed factory overhead application rate? 3. Two-way analysis (breakdown) of the total factory overhead cost variance: calculate the following factory overhead cost variances for October and indicate whether each variance is favorable (F) or unfavorable (U). a. Total flexible-budget variance. b. Production volume variance. c. Total overhead cost variance. 4. Calculate the production volume variance and indicate whether the variance is favorable (F) or unfavorable (U). Complete this question by entering your answers…
Use the following information for Questions 18 & 19 18. 19. The Maxit Corporation has a standard costing system in which variable manufacturing overhead is assigned to production on the basis of standard machine-hours. The following data are available for July: C. d. The variable overhead efficiency variance for July is: a. $600 U b. $540 U $540 F $600 F ● a. b. Actual variable manufacturing overhead cost incurred: $11,310 Actual machine-hours worked: 1,600 hours Variable overhead rate variance: $1,710 U Total variable overhead spending variance: $2,310 U The standard number of machine-hours allowed for July production is closest to: 1,600 hours 1,700 hours C. d. 1,300 hours 1,500 hours
Compute for Requirement #1,2,3
Given answer accounting questions
Q.Prepare journal entries for manufacturing overhead costs and their variances
Tub Co. uses a standard cost system. The following information pertains to direct labor for product B for the month of October: Standard hours allowed for actual production 2,000 Actual rate paid per hour P 8.40 Standard rate per hour P 8.00 Labor efficiency variance P 1,600UF What were the actual hours worked? 1,810 2,200 2,190 1,800

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