EBK HORNGREN'S COST ACCOUNTING
16th Edition
ISBN: 9780134475998
Author: Rajan
Publisher: YUZU
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Textbook Question
Chapter 8, Problem 8.28E
Straightforward coverage of manufacturing
| Variable |
$537,470 |
| Variable manufacturing overhead cost rate | $7 per standard machine-hour |
| Fixed manufacturing overhead costs incurred | $146,101 |
| Fixed manufacturing overhead costs budgeted | $136,000 |
| Denominator level in machine-hours | 68,000 |
| Standard machine-hour allowed per unit of output | 1.2 |
| Units of output | 66,500 |
| Actual machine-hours used | 75,700 |
| Ending work-in-process inventory | 0 |
- A. Prepare an analysis of all manufacturing overhead variances. Use the 4-
variance analysis framework illustrated in Figure 8-4 (page 304).
Required
- B. Prepare
journal entries for manufacturing overhead costs and their variances. - C. Describe how individual variable manufacturing overhead items are controlled from day to day.
- D. Discuss possible causes of the variable manufacturing overhead variances.
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Students have asked these similar questions
Q.Describe how individual variable manufacturing overhead items are controlled from day to day.
Predetermined Overhead Rate, Applied Overhead, Unit Cost
Ripley, Inc., costs products using a normal costing system. The following data are available for last year:
Budgeted:
Overhead
$272,700
Machine hours
89,000
Direct labor hours
10,100
Actual:
Overhead
$271,900
Machine hours
86,600
Direct labor hours
9,880
Prime cost
$1,033,240
Number of units
130,000
Overhead is applied on the basis of direct labor hours.
Required:
1. What was the predetermined overhead rate?
per direct labor hour
2. What was the applied overhead for last year?
3. Was overhead over- or underapplied, and by how much?
4. What was the total cost per unit produced? (Carry your answer to four significant digits.)
per unit
Indirect Cost Allocation: Direct Method
Sprint Manufacturing Company has two production departments, Melting and Molding. Direct general plant management and plant security costs benefit both production departments. Sprint allocates general plant management costs on the basis of the number of production employees and plant security costs on the basis of space occupied by the production departments. In November, the following overhead costs were recorded:
Melting Department overhead
$110,000
Molding Department overhead
400,000
General plant management
100,000
Plant security
50,000
Other pertinent data follow:
Melting
Molding
Number of employees
35
40
Space occupied (square feet)
10,000
20,000
Machine hours
10,000
2,000
Direct labor hours
4,000
20,000
a. Prepare a schedule allocating general plant management costs and plant security costs to the Meltingand Molding Departments.
Department
Total
Melting…
Chapter 8 Solutions
EBK HORNGREN'S COST ACCOUNTING
Ch. 8 - How do managers plan for variable overhead costs?Ch. 8 - How does the planning of fixed overhead costs...Ch. 8 - How does standard costing differ from actual...Ch. 8 - What are the steps in developing a budgeted...Ch. 8 - What are the factors that affect the spending...Ch. 8 - Assume variable manufacturing overhead is...Ch. 8 - Describe the difference between a direct materials...Ch. 8 - What are the steps in developing a budgeted fixed...Ch. 8 - Why is the flexible-budget variance the same...Ch. 8 - Explain how the analysis of fixed manufacturing...
Ch. 8 - Provide one caveat that will affect whether a...Ch. 8 - The production-volume variance should always be...Ch. 8 - What are the variances in a 4-variance analysis?Ch. 8 - Overhead variances should be viewed as...Ch. 8 - Describe how flexible-budget variance analysis can...Ch. 8 - Each of the following statements is correct...Ch. 8 - Steed Co. budgets production of 150,000 units in...Ch. 8 - As part of her annual review of her companys...Ch. 8 - Culpepper Corporation had the following...Ch. 8 - Fordham Corporation produces a single product. The...Ch. 8 - Variable manufacturing overhead, variance...Ch. 8 - Fixed manufacturing overhead, variance analysis...Ch. 8 - Variable manufacturing overhead variance analysis....Ch. 8 - Fixed manufacturing overhead variance analysis...Ch. 8 - Manufacturing overhead, variance analysis. The...Ch. 8 - 4-variance analysis, fill in the blanks. ProChem...Ch. 8 - Straightforward 4-variance overhead analysis. The...Ch. 8 - Straightforward coverage of manufacturing...Ch. 8 - Overhead variances, service sector. Meals Made...Ch. 8 - Total overhead, 3-variance analysis. Pampered...Ch. 8 - Production-volume variance analysis and...Ch. 8 - Overhead variances, service setting. Carlyle...Ch. 8 - Identifying favorable and unfavorable variances....Ch. 8 - Flexible-budget variances, review of Chapters 7...Ch. 8 - Comprehensive variance analysis. Cooking Whiz...Ch. 8 - Journal entries (continuation of 8-35). A. Prepare...Ch. 8 - Graphs and overhead variances. Best Around, Inc.,...Ch. 8 - Overhead variance, missing information. Consider...Ch. 8 - Flexible budgets, 4-variance analysis. (CMA,...Ch. 8 - Activity-based costing, batch-level variance...Ch. 8 - Overhead variances and sales-volume variance. The...Ch. 8 - Activity-based costing, batch-level variance...Ch. 8 - Comprehensive review of Chapters 7 and 8, working...Ch. 8 - Review of Chapters 7 and 8, 3-variance analysis....Ch. 8 - Nonfinancial variances. Kathys Kettle Potato Chips...Ch. 8 - Overhead variances, service sector. Cavio is a...Ch. 8 - Direct-cost and overhead variances, income...Ch. 8 - Overhead variances, ethics. Carpenter Company uses...
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What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY