Woodman Company applies factory overhead on the basis of direct laborhours. Budget and actual data for direct labor and overhead for the yearare as follows:BudgetP600,000720,000ActualP550,000680,000Direct labor hoursFactory overhead costsThe factory overhead for Woodman for the year isOverapplied by P20,000Overapplied by P40,000Underapplied by P20,000Underapplied by P40,000

Factory Overheads are the indirect costs and expenses related to manufacturing and production of…

Answered: Woodman Company applies factory…

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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Mountain tops applies overhead on the basis of direct labor hours and reports the following information: Budget Actual Overhead $450,000 $452, 000 Direct Labor Hours 75,000 77,000 Direct Materials $195,000 Direct Labor 333,000 A. What is the predetermined overhead rate? B. How much overhead was applied during the year? C. Was overhead over applied, or under applied and by how much?
Overhead rate per hour?
The following information is available for the Danske Company: Denominator hours for May Actual hours worked during May Standard hours allowed for May Flexible budget fixed overhead cost Actual fixed overhead costs for May Danske Company had total underapplied overhead of $20,000. Additional information is as follows: Variable Overhead: Applied based on standard direct labor-hours allowed Budgeted based on standard direct labor-hours Fixed Overhead: Applied based on standard direct labor-hours allowed Budgeted based on standard dinect labon-hours $ 52,000 43,000 $ 40,000 32,000 What is the fixed overhead price (spending) variance for May? Multiple Choice $4,000 unfavorable 94.100 unfavorable
Crash Bang, Co. uses a standard cost system and provides the following information: Standards: Static budget variable overhead $5,590.00. Static budget fixed overhead $22,250.00. Static budget direct labor hours 566 hours. Static budget number of units 21,000 units. Static budget direct labor hours 0.023 hours per unit. Crash Bang, Co. allocates manufacturing overhead to production based on standard direct labor hours. Crash Bang, Co. reported the following actual results for 2020: Actual: Number of units produced 19,800. Actual variable overhead $5,230.00 Actual fixed overhead $24,570.00. Actual direct labor hours 485. (Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Compute the fixed overhead allocation rates.
Der Company uses a standard cost system in which it applies manufacturing overhead on the basis of direct labor-hours. Two direct labor-hours are required for each unit produced. The budgeted activity was set at 9,000 units. Manufacturing overhead was budgeted at $135,000 for the period; 20 percent of this cost was fixed. The 17,200 hours worked during the period resulted in production of 8,500 units. Variable manufacturing overhead cost incurred was $108,500 and fixed manufacturing overhead cost was $28,000. The fixed overhead production volume variance for the period was: a) $750 unfavorable. b) $2,500 unfavorable. c) $1,500 unfavorable. d) $1,000 unfavorable.
Derma COmpany applies overhead on the basis of direct labour hours in department B. Two direct labour hours are required for each product unit. Planned prodcution for the period was budgeted at 9,000 units. The 17,200 hours worked during the period resulted in production of 8,500 units. Manufacturing overhed was budgeted at $135,000 for the period, 20% of this costs is fixed. Variable manufacturing overheads costs incurred were $108,500, and fixed manufacturing overhead costs were $28,000. compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances
A company reports the following budgeted overhead costs and budgeted cost driver activity. Activity (Cost driver) Quality (number of units inspected) Factory services (square feet) Purchasing (number of orders) Activity Quality Factory services Purchasing Budgeted Cost $ 52,116 $ 123,216 $ 17,472 Use activity-based costing to compute the activity rate for each activity. Note: Round your "Activity Rate" to 2 decimal places. Budgeted Cost $ 52,116 123,216 17,472 Budgeted Activity of Cost Driver Standard Deluxe Total 3,180 860 3,820 2,220 188 228 Budgeted Activity Usage Activity Rate 4,040 6,040 416
Direct labor hours are estimated as 1,900 in Quarter 1; 2,000 in Quarter 2; 1,800 in Quarter 3; and 2,200 in Quarter 4. Indirect material per hour $1.00 Supervisory salaries $16,000 Indirect labor per hour 1.25 Maintenance Salaries 4,000 Maintenance per hour 0.25 Property taxes and insurance 6,000 Utilities per hour 0.50 Depreciation 3,500 Prepare a manufacturing overhead budget using the above overhead information. Manufacturing Overhead Budget For the Year Ending Dec. 31, 2020 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Variable Costs Total Variable Manufacturing Costs $ Fixed Costs Total Fixed Manufacturing Costs Total Manufacturing Overhead
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output $ 426,4e0 $ 420,400 52,ee0 53,000 50,000 Requlred: 1. Compute the fixed portion of the predetermined overhead rate for the year. (Round Flxed portion of the predetermIned overhead rate to 2 declmal places.) 2 Compute the fixed overhead budget variance and volume variance.. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero varlance.). Input ell amounts as positlve values.) 1. Fixed portion of the predetermined overhead rate per DLH 2. Budget variance Volume…

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