Variances: The variances are used to calculate the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference in between cost that is actually incurred and cost which was estimated by the business. Overhead Variance: The variance which is used to determine the variation in actually incurred overhead cost and budgeted overhead cost for the units produced. Overhead Controllable Variance: Overhead controllable variance is determined by subtracting budgeted overhead to be incurred in standard hours from actual overhead incurred in the standard hours . Overhead Volume Variance: Overhead volume variance is the determined by multiplying the difference of normal capacity and standard hours with the fixed overhead rate. To determine: The total, Fixed and variable predetermined manufacturing overhead rates.

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Answer 1

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 25, Problem 25.23E

(a)

To determine

Variances: The variances are used to calculate the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference in between cost that is actually incurred and cost which was estimated by the business.

Overhead Variance: The variance which is used to determine the variation in actually incurred overhead cost and budgeted overhead cost for the units produced.

Overhead Controllable Variance: Overhead controllable variance is determined by subtracting budgeted overhead to be incurred in standard hours from actual overhead incurred in the standard hours.

Overhead Volume Variance: Overhead volume variance is the determined by multiplying the difference of normal capacity and standard hours with the fixed overhead rate.

To determine: The total, Fixed and variable predetermined manufacturing overhead rates.

(b)

To determine

The total, controllable and volume variances.

(c)

To determine

To interpret: The overhead, controllable and volume variances compute in part (b).

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Lansdowne Equipment Co. acquired machinery on January 1, 2020, for $400,000. The machinery had an original estimated useful life of 12 years and an estimated salvage value of $40,000. On January 1, 2024, Lansdowne revised the total useful life to 9 years and the salvage value to $20,000. Compute the depreciation expense for the year ending December 31, 2024, assuming Lansdowne uses straight-line depreciation.

Lansdowne Equipment Co. acquired machinery on January 1, 2020, for $400,000. The machinery had an original estimated useful life of 12 years and an estimated salvage value of $40,000. On January 1, 2024, Lansdowne revised the total useful life to 9 years and the salvage value to $20,000. Compute the depreciation expense for the year ending December 31, 2024, assuming Lansdowne uses straight-line depreciation. Help

Answer 2

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 25, Problem 25.23E

(a)

To determine

Variances: The variances are used to calculate the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference in between cost that is actually incurred and cost which was estimated by the business.

Overhead Variance: The variance which is used to determine the variation in actually incurred overhead cost and budgeted overhead cost for the units produced.

Overhead Controllable Variance: Overhead controllable variance is determined by subtracting budgeted overhead to be incurred in standard hours from actual overhead incurred in the standard hours.

Overhead Volume Variance: Overhead volume variance is the determined by multiplying the difference of normal capacity and standard hours with the fixed overhead rate.

To determine: The total, Fixed and variable predetermined manufacturing overhead rates.

(b)

To determine

The total, controllable and volume variances.

(c)

To determine

To interpret: The overhead, controllable and volume variances compute in part (b).

Expert Solution & Answer

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Answer 3

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 25, Problem 25.23E

(a)

To determine

Variances: The variances are used to calculate the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference in between cost that is actually incurred and cost which was estimated by the business.

Overhead Variance: The variance which is used to determine the variation in actually incurred overhead cost and budgeted overhead cost for the units produced.

Overhead Controllable Variance: Overhead controllable variance is determined by subtracting budgeted overhead to be incurred in standard hours from actual overhead incurred in the standard hours.

Overhead Volume Variance: Overhead volume variance is the determined by multiplying the difference of normal capacity and standard hours with the fixed overhead rate.

To determine: The total, Fixed and variable predetermined manufacturing overhead rates.

(b)

To determine

The total, controllable and volume variances.

(c)

To determine

To interpret: The overhead, controllable and volume variances compute in part (b).

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 25, Problem 25.23E

(a)

To determine