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Wadding Corporation applies manufacturing overhead to products on the basis of standard machine hours. For the most recent month, the company based its budget on 3,700 machine hours. Budgeted and actual overhead costs for the month appear below: Original Budget Based on 3,700 Actual Machine-Hours Costs Variable overhead costs: Supplies Indirect labor $ 11,350 $ 11,930 27,500 28,070 Fixed overhead costs: Supervision Utilities Factory 19,800 19,440 6,000 5,880 7,000 7,310 Total overhead $ 71,650 $ 72,630 The company actually worked 4,200 machine hours during the month. The standard hours allowed for the actual output were 4,190 machine hours for the month. What was the overall variable overhead efficiency variance for the month?a. $850 Favorableb. $105 Unfavorablec. $190 Favorable d. $311 Favorable The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment: Sales Gross profit Indirect labor $ 1,20,75,000 50,73,900 4,00,000 Indirect materials 1,75,600 Other factory overhead 7,90,400 Materials purchased 40,25,000 Total manufacturing costs for the period 76,89,000 Materials inventory, end of period 2,83,000 Determine the following amounts: a. Cost of goods sold b. Direct materials cost c. Direct labor cost

Wadding Corporation applies manufacturing overhead to products on the basis of standard machine hours. For the most recent month, the company based its budget on 3,700 machine hours. Budgeted and actual overhead costs for the month appear below: Original Budget Based on 3,700 Actual Machine-Hours Costs Variable overhead costs: Supplies Indirect labor $ 11,350 $ 11,930 27,500 28,070 Fixed overhead costs: Supervision Utilities Factory 19,800 19,440 6,000 5,880 7,000 7,310 Total overhead $ 71,650 $ 72,630 The company actually worked 4,200 machine hours during the month. The standard hours allowed for the actual output were 4,190 machine hours for the month. What was the overall variable overhead efficiency variance for the month?a. $850 Favorableb. $105 Unfavorablec. $190 Favorable d. $311 Favorable The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment: Sales Gross profit Indirect labor $ 1,20,75,000 50,73,900 4,00,000 Indirect materials 1,75,600 Other factory overhead 7,90,400 Materials purchased 40,25,000 Total manufacturing costs for the period 76,89,000 Materials inventory, end of period 2,83,000 Determine the following amounts: a. Cost of goods sold b. Direct materials cost c. Direct labor cost

FINANCIAL ACCOUNTING
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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Wadding Corporation applies manufacturing overhead to products on the basis of standard machine hours. For the most recent month, the company based its budget on 3,700 machine hours. Budgeted and actual overhead costs for the month appear below: Original Budget Based on 3,700 Actual Machine-Hours Costs Variable overhead costs: Supplies Indirect labor $ 11,350 $ 11,930 27,500 28,070 Fixed overhead costs: Supervision Utilities Factory 19,800 19,440 6,000 5,880 7,000 7,310 Total overhead $ 71,650 $ 72,630 The company actually worked 4,200 machine hours during the month. The standard hours allowed for the actual output were 4,190 machine hours for the month. What was the overall variable overhead efficiency variance for the month?a. $850 Favorableb. $105 Unfavorablec. $190 Favorable d. $311 Favorable The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment: Sales Gross profit Indirect labor $ 1,20,75,000 50,73,900 4,00,000 Indirect materials 1,75,600 Other factory overhead 7,90,400 Materials purchased 40,25,000 Total manufacturing costs for the period 76,89,000 Materials inventory, end of period 2,83,000 Determine the following amounts: a. Cost of goods sold b. Direct materials cost c. Direct labor cost
Transcribed Image Text:Wadding Corporation applies manufacturing overhead to products on the basis of standard machine hours. For the most recent month, the company based its budget on 3,700 machine hours. Budgeted and actual overhead costs for the month appear below: Original Budget Based on 3,700 Actual Machine-Hours Costs Variable overhead costs: Supplies Indirect labor $ 11,350 $ 11,930 27,500 28,070 Fixed overhead costs: Supervision Utilities Factory 19,800 19,440 6,000 5,880 7,000 7,310 Total overhead $ 71,650 $ 72,630 The company actually worked 4,200 machine hours during the month. The standard hours allowed for the actual output were 4,190 machine hours for the month. What was the overall variable overhead efficiency variance for the month?a. $850 Favorableb. $105 Unfavorablec. $190 Favorable d. $311 Favorable The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment: Sales Gross profit Indirect labor $ 1,20,75,000 50,73,900 4,00,000 Indirect materials 1,75,600 Other factory overhead 7,90,400 Materials purchased 40,25,000 Total manufacturing costs for the period 76,89,000 Materials inventory, end of period 2,83,000 Determine the following amounts: a. Cost of goods sold b. Direct materials cost c. Direct labor cost
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