The following data relate to the overhead expenditure of a business at two activity levels. Square metres 12,750 15,100 Overheads $73,950 $83,585 What is the estimated overhead expenditure if 16,200 square metres are to be cleaned? O a. $88,095 O b. $44,745 O c. $25,626 O d. $192,645
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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- QUESTION 3 A company absorbs overheads based on machine hours. Machine hours were budgeced co be 11,250 and budgeted overheads were £258,750. The actual results were 10,980 machine hours with averheads of £254,692. Were overheads over or under absorbed and by how much? Oa Under absorbed by £2.152 Ob.Over absorbed by £4,058 O. Under absorbed by E4,058 Od. Over absorbed by £2,152 QUESTION 4 A firm has a high level of inventory turnover and uses the Firar in First Out (FIFO) inventory valuation method. In a period of rising purchase prices what would the value of the dosing inventory units be? Oa Based on the pnces of the first inems recerved Ob. Much iower than current purchase prices Oc The average of all goods purchased in the period O d. Close to current purchase pricesThe following data relate to the overhead expenditure of an organisation at two activity levels. Square metres 12,750 15,100 Overheads $73,950 $83,585 What is the estimated overhead expenditure if 16,200 square metres are to be cleaned? A $25,626 B $44,745 C $88,095 D $192,645Metropolitan Enterprises reports the following information at December 31: Manufacturing Overhead $4,300 21,000 18,500 $45,500 Requirements 1. What is the actual manufacturing overhead of Metropolitan Enterprises? 2. What is the allocated manufacturing overhead? 3. Is manufacturing overhead underallocated or overallocated? By how much?
- Using the below what is The total amount of overhead applied during the year? Estimated Estimated Overhead Cost Expected Activity Activity #1 $60,048 4,800 Activity #2 $58,656 2,400 Activity #3 $130,324 4,400 Actual costs Actual Overhead Cost Actual Activity Activity #1 $59,798 4,830 Activity #2 $58,476 2,370 Activity #3 $130,234 4,450A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the activity for the cost driver was estimated as 2,500 hours. If product A utilized 1,350 hours and product 8 utilized 1,100 hours, what was the total amount of overhead assigned to the products? A. $35000 B. $30.800 C. $37,800 D. $68,600The T-account showing the manufacturing overhead activity for Kenneth Corp. for 2018 is as follows: Manufacturing Overhead 210,000 196,000 Read the requirements. Requirement 1. What is the actual manufacturing overhead? Actual manufacturing overhead: S Requirement 2. What is the allocated manufacturing overhead? Allocated manufacturing overhead: S Requirement 3. Is manufacturing overhead underallocated or overallocated? By how much? Manufacturing overhead is by $
- Service Department Cost Allocation Presented below are certain operating data for the four departments of Tally Manufacturing Company. Service Production 1 2 1 2 Total manufacturing overhead costs either identifiable with or allocated to each department $120,000 $144,000 $180,000 $196,000 Square feet of factory floor space 80,000 160,000 Number of factory workers 60 20 Planned direct labor hours for the year 40,000 60,000 Allocate, to the two production departments, the costs of service departments 1 and 2, using factory floor space and number of workers, respectively, as bases. Do not round bases when calculating reallocations of service departments. Production 1 2 Identifiable and allocated overhead Reallocation of service departments: Dept. 1 Factory floor space Dept. 2 Number of factory workers Total manufacturing overhead What is the apparent overhead rate for each…Use the information in the following table to compute each department’s contribution to overhead (both in dollars and as a percent). Which department contributes the largest dollar amount to total overhead? Which department contributes the highest percent (as a percent of sales) to total overhead? Dept. A Dept. B Dept. C Sales $ 53,000 $ 180,000 $ 84,000 Costs of goods sold 34,185 103,700 49,560 Gross profit 18,815 76,300 34,440 Total direct expenses 3,660 37,060 7,386Work−in−Process Inventory has a debit balance of $82,000 and Manufacturing Overhead has a debit balance of $18,000. If an additional $52,000 of direct labor and $4,000 of indirect labor are incurred during production, what is the balance of Manufacturing Overhead? A. $22,000 B. $30,000 C. $134,000 D. $14,000
- K Rios Corporation reports costs for the year as follows: Direct Materials Used Wages to Line Workers Office Rent Indirect Materials Used How much is the total product costs for the year? A. $605,000 OB. $1,155,000 OC. $550,000 OD. $1,199,500 $430,000 120,000 44,500 605,000See information in image attached Question: After the reapportionment of service departments, what is the total overhead for the finishing department? a. R126 100 b. R124 500 c. R126 500 d. R127 000 e. R128 500The firm applies an overhead worth P100,000. The correct journal entry would be? P 100,000 Work-in-Process Accounts payable Manufacturing overhead Accounts payable Manufacturing overhead Work-in-process d. Work-in-process a. P100,000 b. P 100,000 P100,000 P 100,000 с. P 100,000 P 100,000 Manufacturing overhead P100,000