You have been given the following information about the production of Lisa Co., and are asked to provide the factory manager withinformation for a meeting with the vice president of operations.Standard Cost CardDirect materials (6 pounds at $5 per pound)$30.00Direct labor (0.8 hours at $10)8.00Variable overhead (0.8 hours at $3 per hour)2.40Fixed overhead (0.8 hours at $7 per hour)5.60$46.00The following is a variance report for the most recent period of operations.VariancesCostsTotal Standard CostPriceQuantityDirect materials$405,000$8,296 F$9,800 UDirect labor108,0005,775 U7,500 U

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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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Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Product Direct Overhead Labor Hours (dlh) B Painting Dept. $256,100 10,600 तlh 7 dlh 8 dlh Finishing Dept. 83,700 11,000 2. Totals $339,800 21,600 dlh 9 dih 15 dih Using a single plantwide rate, the factory overhead allocated per unit of Product B is Oa. 5169.12 Ob. $15.73 Oc. $235.95 Od. $14157
Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Overhead DirectLabor Hours (dlh) Product A B Painting Dept. $408,206 10,600 dlh 12 dlh 2 dlh Finishing Dept. 32,280 4,000 3 18 Totals $440,486 14,600 dlh 15 dlh 20 dlh The overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is
Fancy Decorating uses a job order costing system to collect the costs of its interior decorating business. Each client's consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed below are data for the current year. Budgeted overhead Actual overhead Budgeted decorator hours Actual decorator hours (a) $880,000 $910,000 40,000 The company uses Operating Overhead in place of Manufacturing Overhead. 41,000 Save for Later Compute the predetermined overhead rate. Predetermined overhead rate $ per decorator hour Attempts: 0 of 1 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Submit Answer
The managerial accountant at Sunny Manufacturing needs to determine how many costs are fixed costs and how many costs are variable costs in the organization. The managerial accountant reported the following information: Use the high-low method to determine the cost equation and use machine hours as the base for a cost driver in the analysis. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Month Machine-Hours Total Cost January 1,800 $21,500 February 2,900 $23,200 March 1,000 $19,750 April 2,400 $21,000 May 3,400 $23,900
Computing Total Job Costs and Unit Product Costs Using a Plantwide Predetermined Overhead Rate Mickley Company’s plantwide predetermined overhead rate is $14.00 per direct labor-hour and its direct labor wage rate is $ 17.00 per hour. The following information pertains to Job A-500: Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 40 units, what is the unit product cost for this job?
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Mabry Organics manufacturers organic fruit snacks. They use a departmental method of allocating manufacturing overhead. Department A's predetermined overhead rate is $5.67 per direct labor hour. Department B's predetermined overhead rate is $14.88 per machine hour. Actual cost driver information per department is provided below. Department A Department B Actual direct labor hours 50,200 DL hours 23,400 DL hours Actual machine hours 48,900 machine hours 17,500 machine hours What is the total applied manufacturing overhead?
Single Plantwide Factory Overhead Rate Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: Factory depreciation Indirect labor Factory electricity Indirect materials Selling expenses Tortilla chips Potato chips Pretzels Administrative expenses Total costs Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case: I Budgeted Volume (Cases) Total If required $20,857 51,690 5,894 3,300 2,400 5,700 11,400 12,243 29,019 16,323 $136,026 Processing Hours Per Case 0.10 0.15 0.12
step in overhead planning and control. After much effort and analysis, you estimated the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,100 + $0.15 per machine-hour $38,100 + $1.60 per machine-hour $0.50 per machine-hour $94,500 + $2.10 per machine-hour $67,700 Actual Cost in March $ 20,450 $ 59,100 $ 8,300 $ 131,100 $ 69,400 During March, the company worked 15,000 machine-hours and produced 9,000 units. The company originally planned to work 17,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the spending variances for March. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive…
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BettaFish Inc. applies factory overhead as follows: * Department Per Machine Hour Fabricating Spreading Packaging PI0 P20 P30 Actual machine hours are: Fabricating- 2,000 hours Spreading - 1,500 hours Packaging - 3,000 hours The following additional data are provided: a. The actual factory overhead expense for the period is P100,000. b. The ending balances of the inventories and cost of goods sold after the application of overhead are as follows: Raw Materials Work in Process Finished Goods Cost of goods sold c. The over/(under) applied overhead during the period is considered material if at least 30% of actual factory overhead, 200,000 100,000 400,000 500,000 What is the adjusted cost of goods sold after closing the under/ over application of factory overhead?
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