14pointsSkippedTB MC Qu. 10A-86 (Static) Tierman Incorporated makes a single product--a...Tierman Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system inwhich it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerningthe most recent year appear below:Budgeted fixed manufacturing overheadBudgeted production (a)$ 221,70015,000 unitsStandard hours per unit (b)eBookBudgeted hours (a) x (b).Actual production (a)Standard hours per unit (b)Standard hours allowed for the actual production (a) x (b)Actual fixed manufacturing overheadThe fixed overhead volume variance is:2.00 machine-hours30,000 machine-hours17,000 units2.00 machine-hours34,000 machine-hours$ 207,700Multiple Choice

The objective of this question is to calculate the fixed overhead volume variance for Tierman…

Answered: 1 4 points Skipped TB MC Qu. 10A-86…

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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QUESTION 3 Afiza Group manufactures customized equipment for local market. The data for the period were as follows: Budgeted overhead Actual direct labour hours Budgeted direct labour hours Direct material: Direct labour: A B Actual machine hours 6,200 hours 4,700 hours Budgeted machine hours' 5,700 hours 5,300 hours An order is received from Encik Fahim to manufacture an equipment for his personal use. The data related to the costs of the equipment were as follows: Machining Finishing Machining department RM50,000 Hire of special machine Administrative expenses Machine hours: 5,000 hours 5,400 hours Finishing department RM65,000 RM 1,500 RM2,100 6,000 hours 5,800 hours 500 hours @ RM2.50 per hour 450 hours @ RM3.20 per hour RM1,200 15% of factory costs Machining Finishing 321 hours 670 hours Profit 25% of total cost Overhead absorption is based on machine hour for the Machining department and direct labour hour for Finishing department. Required: a) Prepare a Job Cost Sheet showing…
Exercise 10A-3 (Algo) Applying Overhead in a Standard Costing System [LO10-4] Privack Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted variable overhead cost per direct labor-hour Total budgeted fixed overhead cost per year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output Required: 1. Compute the predetermined overhead rate for the year. Be sure to include the total budgeted fixed overhead and the total budgeted variable overhead in the numerator of your rate. (Round your answer to the nearest whole dollar amount.) 2. Compute the amount of overhead that would be applied to the output of the period. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) 1. Predetermined overhead rate…
ces Required information [The following information applies to the questions displayed below.] Mc Graw Hill 1 Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: A option 1 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 20,000 to 20,001 units? 2. What is the incremental cost incurred if the company increases production and sales from 20,000 to 20,001 units? 3. Assume that Kubin Company produced 20,000 units and expects to sell 19,800 of them. If a new customer unexpectedly emerges and expresses interest in buying the 200 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental…
TB MC Qu. 13-54 (Static) Sardi Incorporated is considering whether to continue... Sardi Incorporated is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 17,000 of the components each year. The unit product cost of the component according to the company's cost accounting system is given as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 70% is avoidable if the component were bought from the outside supplier. In addition, making the component uses 2 minutes on the machine that is the company's current constraint. If the component were bought, time would be freed up for use on another product that requires 4 minutes on this machine and that has a contribution margin of $7.00 per unit. When deciding whether to make or buy the component, what cost of making the component should be…
Required Informatlon [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000 units of each product. Its average cost per unit for each product at this level of activity are given below Alpha Beta $ 24 Direct materials 3. 24 Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses 42 34 27 Total cost per unit $173 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 3. Assume that Cane expects to produce and sell 99,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy…
Exercise 10A-3 (Algo) Applying Overhead in a Standard Costing System [LO10-4] Privack Corporation applies overhead to products based on the standard direct labor-hours allowed for the actual output. Data concerning the most recent year appear below: Budgeted variable overhead cost per direct labor-hour Total budgeted fixed overhead cost per year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output Required: $ 4.00 $ 592,856 59,286 83,000 82,000 1. Compute the predetermined overhead rate for the year. Be sure to include the total budgeted fixed overhead and the total budgeted variable overhead in the numerator of your rate. Note: Round your answer to the nearest whole dollar amount. 2. Compute the amount of overhead applied to the output of the period. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. 1. Predetermined overhead rate 2. Overhead applied…
Exercise 10A-3 (Algo) Applying Overhead in a Standard Costing System [LO10-4] Privack Corporation applies overhead to products based on the standard direct labor-hours allowed for the actual output. Data concerning the most recent year appear below: Budgeted variable overhead cost per direct labor-hour Total budgeted fixed overhead cost per year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output Required: 1. Predetermined overhead rate 2. Overhead applied $ 4.00 $ 528, 180 1. Compute the predetermined overhead rate for the year. Be sure to include the total budgeted fixed overhead and the total budgeted variable overhead in the numerator of your rate. Note: Round your answer to the nearest whole dollar amount. 2. Compute the amount of overhead applied to the output of the period. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. per DLH 75,455…
ces Required information [The following information applies to the questions displayed below.] Ac Graw Hill 1 Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Q A Direct materials Direct labor N Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense 4. If 12,500 units are produced and sold, what is the variable cost per unit produced and sold? (Round your answer to 2 decimal places.) Variable cost per unit sold @ 2 W S #3 X of E D $ 4 * 00 8 J N E 2023-01...0.40 PM 2023-01...2.52 PM 2022-12 ( ( 1 9 C K M 0 O L H I' P comm
Problem 4. NEW JERSEY CORP. uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labor-hours. The company's total budgeted variable and fixed manufacturing overhead costs at the denominator level of activity are P20,000 for variable overhead and P30,000 for fixed overhead. The predetermined overhead rate, including both fixed and variable components, is P2.50 per direct labor-hour. The standards call for two direct labor-hours per unit of output produced. Last year, the company produced 11,500 units of product and worked 22,000 direct labor-hours. Actual costs were P22,500 for variable overhead and P31,000 for fixed overhead. Required: (a) What is the denominator level of activity? (b) What were the standard hours allowed for the output last year? (c) What was the variable overhead spending variance? (d) What was the variable overhead efficiency variance? (e) What was the fixed overhead budget variance? () What was the fixed…
Required Information [The following information applies to the questions displayed below.] Upstate Mechanical, Incorporated, has been producing two bearings, components T79 and B81, for use in production. Data regarding these two components follow. Machine hours required per unit Standard cost per unit: Direct material Direct labor Manufacturing overhead Variable* Fixedt Total T79 2.5 $ 2.25 4.00 2.00 3.75 $ 12.00 Maximum price 881 3.0 $ 3.75 4.50 2.25 4.50 $ 15.00 *Variable manufacturing overhead is applied on the basis of direct-labor hours. *Fixed manufacturing overhead is applied on the basis of machine hours. Upstate Mechanical's annual requirement for these components is 8,000 units of T79 and 11,000 units of B81. Recently. management decided to devote additional machine time to other product lines, leaving only 41,000 machine hours per year for producing the bearings. An outside company has offered to sell Upstate Mechanical its annual supply of bearings at prices of $11.25 for…
Exercise 10A-3 (Algo) Applylng Overhead In a Standard CostIng System [LO10-4] Privack Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted variable overhead cost per direct labor-hour Total budgeted fixed overhead cost per year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output 4.50 $ 563,213 59, 288 82, 000 81,600 Requlred: 1. Compute the predetermined overhead rate for the year. Be sure to include the total budgeted fxed overhead and the total budgeted variable overhead in the numerator of yourrate. (Round your answer to the neorest whole dellar emnount.). 2. Compute the amount of overhead that would be applied to the outout of the period. (Round your Intermedlate calculetions and final answer to the nearest whole doller…
S ipped Book erences Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Mercon $ 10.00 Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced $ 3.00 0.20 10,000 These products are customized to some degree for specific customers. Wurcon $ 8.00 $ 3.75 0.25 40,000 Required: 1. The company's manufacturing overhead costs for the year are expected to be $336,000. Using the company's conventional costing system, compute the unit product costs for the two products. 2. Management is considering an activity-based costing system in which half of the overhead would continue to be allocated on the basis of direct labor-hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year: 1.…

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