Windsor Company has gathered the following information: Variable manufacturing overhead costs Fixed manufacturing overhead costs Normal production level in labour hours Standard labour hours $12,150 $9,180 9,000 9,400 During the year, 3,310 units were produced, 10,700 hours were worked, and the actual manufacturing overhead was $20,100. Actua fixed overhead totalled $9,190.
Windsor Company has gathered the following information: Variable manufacturing overhead costs Fixed manufacturing overhead costs Normal production level in labour hours Standard labour hours $12,150 $9,180 9,000 9,400 During the year, 3,310 units were produced, 10,700 hours were worked, and the actual manufacturing overhead was $20,100. Actua fixed overhead totalled $9,190.
Chapter1: Financial Statements And Business Decisions
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Windsor Company has gathered the following information:
Variable manufacturing overhead costs
Fixed manufacturing overhead costs
Normal production level in labour hours
Standard labour hours
(a)
$12,150
$9,180
9,000
During the year, 3,310 units were produced, 10,700 hours were worked, and the actual manufacturing overhead was $20,100. Actual
fixed overhead totalled $9.190.
Windsor applies overhead based on direct labour hours.
Fixed predetermined ovehead rate $
Variable predetermined ovehead rate $
Total predetermined ovehead rate $
9,400
Calculate the total, fixed, and variable predetermined overhead rates. (Round calculations and final answer to 2 decimal places, eg.
15.25)
per DL hour
per DL hour
per DL hour
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