Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on directlabor-hours and its standard cost card per unit is as follows:Direct material: 5 pounds at $10.00 per pound $ 50.00Direct labor: 4 hours at $16 per hourVariable overhead: 4 hours at $7 per hourTotal standard variable cost per unit64.0028.00$142.00The company also established the following cost formulas for its selling expenses:Fixed Cost perVariable Cost perUnit SoldMonth$4AdvertisingSales salaries andcommissionsShipping expenses220,000140,000$14.00$5.00The planning budget for March was based on producing and selling 20,000 units. However, during March the companyactually produced and sold 24,600 units and incurred the following costs:a. Purchased 164,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production.b. Direct-laborers worked 57,000 hours at a rate of $17.00 per hour.c. Total variable manufacturing overhead for the month was $653,220.d. Total advertising, sales salaries and commissions, and shipping expenses were $235,000, $465,000, and $135,000,respectively. The planning budget for March was based on producing and selling 20,000 units. However, during March the companyactually produced and sold 24,600 units and incurred the following costs:a. Purchased 164,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production.b. Direct-laborers worked 57,000 hours at a rate of $17.00 per hour.c. Total variable manufacturing overhead for the month was $653,220.d. Total advertising, sales salaries and commissions, and shipping expenses were $235,000, $465,000, and $135,000,respectively.8. What is the direct labor rate variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.)Direct labor rate variance

Dirrct labour rate variance ( For march ) Standard labour cost for actual output - Actual Labour…

Answered: The planning budget for March was based…

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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The following data pertains to the month of October for Elm. Co. when production was budgeted to be 5,000 units of P90. P90 has standard costs per unit of: 3 lbs of Direct Materials at a cost of $7.00 per lb; .20 hours of Direct Labor at $18.00 per hour, and variable overhead assigned on the basis of 0.05 machine hours at a rate of $50 per machine hour. Actual production of P90 for October was 4,600 units, using 324 machine hours costing a total of $17,066. A. Determine the variable overhead efficency variance. (negative number indicate a favorable variance)
Lemon Company manufactures a single product. The company manufactured 5,000 units in March, using 6,150 pounds of material and 2,420 labor hours. During the same month, they purchased 6,200 pounds of material for $151,590. The actual labor cost for March was $39,930. There were no beginning or ending work-in-process inventories. The company has the following unit standard costs for direct materials and labor. Budgeted quantity Per unit Direct materials 1.20 pounds Budgeted price $25 per pound $15 per hour Direct labor 0.50 hours
The following data pertains to the month of October for Elm. Co. when production was budgeted to be 5,000 units of P90. P90 has standard costs per unit of: 3 lbs of Direct Materials at a cost of $7.00 per lb; .20 hours of Direct Labor at $18.00 per hour, and variable overhead assigned on the basis of 0.05 machine hours at a rate of $50 per machine hour. Actual production of P90 for October was 4,600 units, using 15,100 lbs of material costing a total of $107,778. A. Determine the direct materials quantity variance. (negative numbers indicate a favorable variance)
The following data pertains to the month of October for ElmCo. when production was budgeted to be 5,000 units of P90. P90 has standard costs per unit of: 3 Ibs. of Direct Materials at a cost of $7.00 per Ib.; 0.20 hours of Direct Labor at $18.00 per hour; and Variable Overhead assigned on the basis of 0.05 machine hours at a rate of $50 per machine hour. In October the production of P90 totaled 4,600 units, using 324 machine hours costing a total of $17,066. Determine the variable overhead spending variance. (Negative numbers indicate a favorable variance.)
The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 10,800 9,800 11,800 12,800 Each unit requires 0.25 direct labor-hours and direct laborers are paid $13.00 per hour. In addition, the variable manufacturing overhead rate is $1.90 per direct labor-hour. The fixed manufacturing overhead is $88,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $28,000 per quarter. Required: 1. Calculate the company’s total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole. 2. and 3. Calculate the company’s total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole.
Gus Corporation manufactured 10,000 golf bags during April. The fixed overhead cost-allocation rate is $40.00 per machine-hour. The following is the fixed overhead data: Actual Static Budget Production 10,000 units 12,000 units Machine-hours 5,100 hours 6,000 hours Fixed overhead cost $244,000 $240,000 What is the flexible-budget amount? A) $200,000 B) $204,000 C) $240,000 D) $244,000 What is the amount of fixed overhead allocated to production (Actual Qty x Bud Price column)? A) $200,000 B) $204,000 C) $240,000 D) $244,000 The total Fixed overhead variance is: A) overallocated by $4,000 B) underallocated by $4,000 C) overallocated by $44,000 D) underallocated by $44,000
Pinnacle Corp. budgeted $245,500 of overhead cost for the current year. Actual overhead costs for the year were $240,720. Pinnacle's plantwide allocation base, machine hours, was budgeted at 48,450 hours. Actual machine hours were 55,160. A total of 101,090 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is: a. $5.07 per machine hour b. $4.97 per machine hour c. $2.43 per machine hour d. $2.38 per machine hour
Blumen Textiles Corporation began April with a budget for 90,000 hours of production in the Weaving Department. The department has a full capacity of 100,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows: Variable overhead $540,000 Fixed overhead 240,000 Total $780,000 The actual factory overhead was $782,000 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production volume of 92,500 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. a. Determine the variable factory overhead controllable variance.$fill in the blank 1 FavorableUnfavorable b. Determine the fixed factory overhead volume variance.$fill in the blank 3 FavorableUnfavorable
Kata Systems allocates manufacturing overhead based on machine hours. Each connector should require 10 machine hours. According to the static budget, Kata expected to incur the following: 1,000 machine hours per month (100 connectors × 10 machine hours per connector) $8,500 in variable manufacturing overhead costs $9,450 in fixed manufacturing overhead costs During August, Kata actually used 800 machine hours to make 130 connectors and spent $5,200 in variable manufacturing costs and $7,800 in fixed manufacturing overhead costs. Kata's standard variable manufacturing overhead allocation rate is A. $17.95 per machine hour. B. $9.45 per machine hour. C. $10.63 per machine hour. D. $8.50 per machine hour.
My Company produced 26,000 units during February. Direct materials costs are $4.25 per unit and direct labor is $5.75 Pper unit. Variable overhead is applied at $3.50 per unit and fixed overhead is $78,000 per month. Sales commissions are $0.75 per unit sold. Sales salaries for the month are $65,000 and fixed administrative expenses are $80,000. Required: a. Calculate production cost per unit under variable and absorption costing. b. Prepare an income statement under variable costing and under absorption costing for February assuming all 26,000 units produced were sold for $25 each. c. During March, My Company produced 26,000 units and sold 22,000 units. Prepare an income statement under variable and under absorption costing for March assuming each unit sold for $25 each. d. Is the February net income different under each method? Why or why not? What about March, is the net income different? Why or why not? Reconcile net income under both methods.
The Davis Corporation budgeted factory overhead at $250,000 for the period for the Assembly Department based on a budgeted volume of 100,000 direct labor hours. At the end of the period, the factory overhead control account for the Assembly Department had a balance of $252,000. The actual (and allowed) direct labor hours were 103,000. What was the over- or underapplied factory overhead for the period?
In October, Blue Spruce Inc. reports 42,200 actual direct labor hours and incurs $198,000 of manufacturing overhead costs. Standard hours allowed for the month's production is 40,600 hours. Blue Spruce's predetermined overhead rate is $5.04 per direct labor hour. The flexible manufacturing overhead budget shows that budgeted costs are $3.80 variable per direct labor hour and $62,000 fixed. Compute the manufacturing overhead volume variance. Normal capacity was 50,000 direct labor hours. Identify whether the variance is favorable or unfavorable. Total manufacturing overhead volume variance $

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