Standard hours allowed for the year’s production. Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead . Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

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Answer 1

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 10A, Problem 10A.5E

1

To determine

Standard hours allowed for the year’s production.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

2

To determine

Amount of budgeted fixed overhead cost for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

3

To determine

Fixed overhead budget variance for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

4

To determine

Denominator activity level used in setting the predetermined overhead rate for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

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Standard Costing and Variance Analysis Standard Price or Rate P6.00 per meter Direct Materials Direct Labor Variable Factory Overhead P3.00 direct labor hour per Factory overhead is applied to production based on direct labor hours. During the month of February, 5,000 units were produced and sold to customers. Th following are the selected production data for the month: Materials Direct Variable used Labor FOH P52,500 Standard Cost allowed Actual cost incurred P84,000 P75,000 P6,000 U P21,000 P18,000 ? Materials Quantity variance Actual direct labor hours 7,500 hours Standard FOH rate per direct labor hour Standard Price per meter P3.00/hr. P6.00 /m. The difference between the standard and actual cost per unit produced is P0.15 favorable. Required: Compute the following: 1. The standard cost per unit of product. 2. The actual cost per unit of product. Standard Quantity per unit. 4. Material Price variance. 3. 5. 6. Labor Rate variance. Standard direct labor rate per hour. 7. Labor…

A company uses a standard costing system and applies overhead to production based on direct labor-hours. It provided the following information for its most recent year. $300,000 $276,000 60,000 56,000 56,500 Budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator hours) Actual direct labor-hours Standard direct labor-hours al1lowed for actual output What is the fixed overhead volume variance? Multiple Cholce $20,000 F $17,500 U $20,000 U MacBook Air 吕口豐

Terrell Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Variable manufacturing overhead O $46 U $2.30 per hour The company has reported the following actual results for the product for July: Actual output Actual direct labor-hours Actual variable overhead rate S 2.10 per hour Actual variable overhead cost $ 4,998 The variable overhead efficiency variance for the month is closest to: $42 F Standard Quantity or Hours per Unit of Output O $46 F O $42 U Standard Price or Rate 0.30 hours 8,000 units 2,380 hours

Answer 2

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 10A, Problem 10A.5E

1

To determine

Standard hours allowed for the year’s production.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

2

To determine

Amount of budgeted fixed overhead cost for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

3

To determine

Fixed overhead budget variance for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

4

To determine

Denominator activity level used in setting the predetermined overhead rate for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

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Answer 3

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 10A, Problem 10A.5E

1

To determine

Standard hours allowed for the year’s production.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

2

To determine

Amount of budgeted fixed overhead cost for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

3

To determine

Fixed overhead budget variance for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

4

To determine

Denominator activity level used in setting the predetermined overhead rate for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

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Answer 4

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 10A, Problem 10A.5E

1

To determine

Standard hours allowed for the year’s production.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

2

To determine

Amount of budgeted fixed overhead cost for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

3

To determine

Fixed overhead budget variance for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

4

To determine

Denominator activity level used in setting the predetermined overhead rate for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

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Answer 5

Chapter 10A, Problem 10A.5E

1

To determine

Standard hours allowed for the year’s production.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

2

To determine

Amount of budgeted fixed overhead cost for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

3

To determine

Fixed overhead budget variance for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

4

To determine

Denominator activity level used in setting the predetermined overhead rate for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

Answer 6

Chapter 10A, Problem 10A.5E

1

To determine

Standard hours allowed for the year’s production.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

Answer 7

Chapter 10A, Problem 10A.5E

1

To determine

Standard hours allowed for the year’s production.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

Answer 8

2

To determine

Amount of budgeted fixed overhead cost for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

Answer 9

2

To determine

Amount of budgeted fixed overhead cost for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

Answer 10

3

To determine

Fixed overhead budget variance for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

Answer 11

3

To determine

Fixed overhead budget variance for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

Answer 12

4

To determine

Denominator activity level used in setting the predetermined overhead rate for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

Answer 13

4

To determine

Denominator activity level used in setting the predetermined overhead rate for the year.

Introduction: Standard cost is the cost that incur for direct labor, direct materials and for overhead. Standard costs are determined on current market situations and historical trends. In case of labor cost standard cost is determined by direct labor cost per hour and in case of direct material standard cost is determined by material cost per unit.

Answer 14

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Answer 16

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Answer 17

Ch. 10A - Fixed Overhead Variances LO10â€”4 Primara...Ch. 10A - Prob. 10A.2E Ch. 10A - Prob. 10A.3E Ch. 10A - Prob. 10A.4E Ch. 10A - Prob. 10A.5E Ch. 10A - Prob. 10A.6E Ch. 10A - Prob. 10A.7E Ch. 10A - Applying Overhead; Overhead Variances LO10â€”3,...Ch. 10A - Prob. 10A.9P Ch. 10A - Comprehensive Standard Cost Variances LO10â€”1,...

Solution Summary: The author explains the cost of direct labor, direct materials, and for overhead. Standard costs are determined on current market situations and historical trends.

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