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

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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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Garrison Industries produces synthetic rubber used for industrial applications such as conveyor belts. In 2020, the first year of operations, Garrison produced 5,500 tons of rubber and sold 3,200 tons. In 2021, the company produced the same amount of rubber, and sales were 6,500 tons (i.e., the company sold all of its inventory). In each year, the selling price per ton was $2,500, variable manufacturing costs per ton of rubber were $500, and variable selling expenses were $700 for each ton of rubber sold. Fixed manufacturing costs were $5,500,000, and fixed administrative expenses were $650,000. What is the unit manufacturing cost under absorption costing in the year 2021? need Answer

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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 15

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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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