Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Chapter 23, Problem 4CMA
JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT estimated variable factory
Based on the output accomplished during this year, 9,900 standard direct labor hours should have been used. Actual variable factory overhead was $596,000, and actual fixed factory overhead was $410,000 for the year. Based on this information, the variable factory overhead controllable variance for JoyT for this year was:
- a. $24,000 unfavorable.
- b. $2,000 unfavorable.
- c. $4,000 favorable.
- d. $22,000 favorable.
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Fire King manufactures safes- mobile safes, and walk-in stationary bank safes. As part of its annual budgeting process, Custer is analyzing the profitability of its two products. Part of this analysis involves estimating the amount of overhead to be allocated to each product line. The following information relates to overhead.
(a) The total estimated manufacturing overhead was $235,000. Under traditional costing (which assigns overhead on the basis of direct-labor hours), what amount of manufacturing overhead costs are assigned to One mobile safe?
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output for the year was 18,800 units, which took 40,000 machine hours. Actual fixed factory overhead costs for the year
amounted to $249,400 while the actual variable overhead cost per unit was $2.20.
Based on the information provided above, prepare the appropriate journal entries to record: (a) actual factory overhead costs for the
year, (b) the applied factory overhead costs for the year (both variable and fixed), and (c) the total flexible-budget variance and the
production volume variance for the period. Assume that the…
Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 54,600 machine hours per year, which represents 27,300 units of output. Annual budgeted fixed factory overhead costs are $273,000 and the budgeted variable factory overhead cost rate is $3.50 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 21,000 units, which took 43,600 machine hours. Actual fixed factory overhead costs for the year amounted to $262,600 while the actual variable overhead cost per unit was $3.40.
Brief Exercise 15-22 [LO 15-3]
Based on the information provided above, prepare the appropriate journal entries to record: (a) actual factory overhead costs for the year, (b) the applied factory overhead costs for the year (both variable and fixed), and (c) the total flexible-budget variance and the production volume variance…
Chapter 23 Solutions
Financial And Managerial Accounting
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