Manufacturing cost budget: Manufacturing cost budget is a budget comprised of the budgeted costs for materials purchases, direct labor, and factory overhead , which are determined by multiplying their standard costs per unit by the planned level of production. Budget performance report: A budget performance report is the summary of the differences between the actual costs, and the standard costs for the units produced. When the actual cost is less than the standard cost , then it is favorable cost variance. When the actual cost is more than the standard cost, then it is unfavorable cost variance. To prepare: The July manufacturing standard cost budget for Company GB assuming planned production.

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Answer 1

Question

Chapter 8, Problem 3E

A.

To determine

Manufacturing cost budget:

Manufacturing cost budget is a budget comprised of the budgeted costs for materials purchases, direct labor, and factory overhead, which are determined by multiplying their standard costs per unit by the planned level of production.

Budget performance report:

A budget performance report is the summary of the differences between the actual costs, and the standard costs for the units produced. When the actual cost is less than the standard cost, then it is favorable cost variance. When the actual cost is more than the standard cost, then it is unfavorable cost variance.

To prepare: The July manufacturing standard cost budget for Company GB assuming planned production.

B.

To determine

To prepare: A budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for July.

C.

To determine

To interpret: The budget performance report.

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At the beginning of the year, Meridian Industries estimated its manufacturing overhead to be $312,500. At the end of the year, actual direct labor-hours were 25,200 hours, actual manufacturing overhead was $298,600, and manufacturing overhead was overapplied by $29,800. If the predetermined overhead rate is based on direct labor-hours, then the estimated direct labor-hours at the beginning of the year used in the predetermined overhead rate must have been: (Round your intermediate calculations to 2 decimal places.)

Answer 2

Question

Chapter 8, Problem 3E

A.

To determine

Manufacturing cost budget:

Manufacturing cost budget is a budget comprised of the budgeted costs for materials purchases, direct labor, and factory overhead, which are determined by multiplying their standard costs per unit by the planned level of production.

Budget performance report:

A budget performance report is the summary of the differences between the actual costs, and the standard costs for the units produced. When the actual cost is less than the standard cost, then it is favorable cost variance. When the actual cost is more than the standard cost, then it is unfavorable cost variance.

To prepare: The July manufacturing standard cost budget for Company GB assuming planned production.

B.

To determine

To prepare: A budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for July.

C.

To determine

To interpret: The budget performance report.

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Answer 3

Question

Chapter 8, Problem 3E

A.

To determine

Manufacturing cost budget:

Manufacturing cost budget is a budget comprised of the budgeted costs for materials purchases, direct labor, and factory overhead, which are determined by multiplying their standard costs per unit by the planned level of production.

Budget performance report:

A budget performance report is the summary of the differences between the actual costs, and the standard costs for the units produced. When the actual cost is less than the standard cost, then it is favorable cost variance. When the actual cost is more than the standard cost, then it is unfavorable cost variance.

To prepare: The July manufacturing standard cost budget for Company GB assuming planned production.

B.

To determine

To prepare: A budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for July.

C.

To determine

To interpret: The budget performance report.

Expert Solution & Answer

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Answer 4

Question

Chapter 8, Problem 3E

A.

To determine

Manufacturing cost budget:

Manufacturing cost budget is a budget comprised of the budgeted costs for materials purchases, direct labor, and factory overhead, which are determined by multiplying their standard costs per unit by the planned level of production.

Budget performance report:

A budget performance report is the summary of the differences between the actual costs, and the standard costs for the units produced. When the actual cost is less than the standard cost, then it is favorable cost variance. When the actual cost is more than the standard cost, then it is unfavorable cost variance.

To prepare: The July manufacturing standard cost budget for Company GB assuming planned production.

B.

To determine

To prepare: A budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for July.

C.

To determine

To interpret: The budget performance report.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 3E

A.

To determine

Manufacturing cost budget:

Manufacturing cost budget is a budget comprised of the budgeted costs for materials purchases, direct labor, and factory overhead, which are determined by multiplying their standard costs per unit by the planned level of production.

Budget performance report:

A budget performance report is the summary of the differences between the actual costs, and the standard costs for the units produced. When the actual cost is less than the standard cost, then it is favorable cost variance. When the actual cost is more than the standard cost, then it is unfavorable cost variance.

To prepare: The July manufacturing standard cost budget for Company GB assuming planned production.

B.

To determine

To prepare: A budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for July.

C.

To determine

To interpret: The budget performance report.

Answer 6

Chapter 8, Problem 3E

A.

To determine

Manufacturing cost budget:

Manufacturing cost budget is a budget comprised of the budgeted costs for materials purchases, direct labor, and factory overhead, which are determined by multiplying their standard costs per unit by the planned level of production.

Budget performance report:

A budget performance report is the summary of the differences between the actual costs, and the standard costs for the units produced. When the actual cost is less than the standard cost, then it is favorable cost variance. When the actual cost is more than the standard cost, then it is unfavorable cost variance.

To prepare: The July manufacturing standard cost budget for Company GB assuming planned production.

Answer 7

Chapter 8, Problem 3E

A.

To determine

Manufacturing cost budget:

Manufacturing cost budget is a budget comprised of the budgeted costs for materials purchases, direct labor, and factory overhead, which are determined by multiplying their standard costs per unit by the planned level of production.

Budget performance report:

A budget performance report is the summary of the differences between the actual costs, and the standard costs for the units produced. When the actual cost is less than the standard cost, then it is favorable cost variance. When the actual cost is more than the standard cost, then it is unfavorable cost variance.

To prepare: The July manufacturing standard cost budget for Company GB assuming planned production.

Answer 8

B.

To determine

To prepare: A budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for July.

Answer 9

B.

To determine

To prepare: A budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for July.

Answer 10

C.

To determine

To interpret: The budget performance report.

Answer 11

C.

To determine

To interpret: The budget performance report.

Answer 12

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Answer 13

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Answer 15

Ch. 8 - What are the basic objectives in the use of...Ch. 8 - What is meant by reporting by the principle of...Ch. 8 - What are the two variances between the actual cost...Ch. 8 - The materials cost variance report for Nickols...Ch. 8 - A. What are the two variances between the actual...Ch. 8 - Prob. 6DQ Ch. 8 - Would the use of standards be appropriate in a...Ch. 8 - A. Describe the two variances between the actual...Ch. 8 - If variances are recorded in the accounts at the...Ch. 8 - Prob. 10DQ

Solution Summary: The author explains the manufacturing cost budget, which is a budget comprised of materials purchases, direct labor, and factory overhead.

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To prepare: A budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for July.

To interpret: The budget performance report.

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Chapter 8 Solutions