Concord Company's overhead rate was based on estimates of $1,008,000 for overhead costs and 84,000 direct labor hours. Concord'sstandards allow 2 hours of direct labor per unit produced. Production in May was 3,560 units, and actual overhead incurred in Maywas $86,510. The overhead budgeted for 7,120 standard direct labor hours is $85,200 ($14,000 fixed and $71,200 variable).(a)Compute the total, controllable, and volume variances for overhead.Total Overhead Variance$Overhead Controllable Variance$Overhead Volume Variance+A$

To get the total variance we have to compare the actual overhead and standard overhead cost.Actual…

Answered: Concord Company's overhead rate was…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In October, vole Company reports 20,700 actual direct labor hours, and it incurs $171,200 of manufacturing overhead costs. Standard hours allowed for the work done is 21,400 hours. The predetermined overhead rate is $8.25 per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $6.25 variable per direct labor hour and $50,000 fixed. Compute the overhead volume variance. Normal capacity was 25,000 direct labor hours. Overhead Volume Variance
The Davis Corporation budgeted factory overhead at $250,000 for the period for the Assembly Department based on a budgeted volume of 100,000 direct labor hours. At the end of the period, the factory overhead control account for the Assembly Department had a balance of $252,000. The actual (and allowed) direct labor hours were 103,000. What was the over- or underapplied factory overhead for the period?
Dubberly Corporation's cost formula for its manufacturing overhead is $32,300 per month plus $52 per machine-hour. For the month of March, the company planned for activity of 7,860 machine-hours, but the actual level of activity was 7,780 machine-hours. The actual manufacturing overhead for the month was $465,470. The activity variance for manufacturing overhead in March would be closest to: Multiple Choice $24,450 U $4,160 F $4,160 U $24,450 F
Dubberly Corporation's cost formula for its manufacturing overhead is $32,100 per month plus $64 per machine-hour. For the month of March, the company planned for activity of 7,820 machine-hours, but the actual level of activity was 7,760 machine-hours. The actual manufacturing overhead for the month was $556,790. The activity variance for manufacturing overhead in March would be closest to: Multiple Cholce $24,210 U $24,210 F $3,840 F $3,840 U
Cholla Company’s standard fixed overhead rate is based on budgeted fixed manufacturing overhead of $10,800 and budgeted production of 36,000 units. Actual results for the month of October reveal that Cholla produced 31,000 units and spent $10,500 on fixed manufacturing overhead costs.
Botosan Factory has budgeted factory overhead for the year at $615,285, and budgeted direct labor hours for the year are 372,900. If the actual direct labor hours for the month of May are 339,300, the overhead allocated for May is a. $559,845 b. $576,640 c. $475,868 d. $677,412
Krump Corporation's cost formula for its manufacturing overhead is $30,600 per month plus $64 per machine-hour. For the month of March, the company planned for activity of 7,900 machine-hours, but the actual level of activity was 7,880 machine- hours. The actual manufacturing overhead for the month was $558,610. The activity variance for manufacturing overhead in March would be closest to: O $22,410 U $22,410 F O $1,280 F O $1,280 U

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