, 44:13 Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3.20 DLH per unit. For March, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following budget. The company actually operated at 90% capacity (11,250 units) in March and incurred actual total overhead costs of $148,175. Overhead Budget Production in units Budgeted variable overhead Budgeted fixed overhead 80% Operating Levels 10,000 $ 64,000 $ 80,000 1. Compute the standard overhead rate. Hint Standard allocation base at 80% capacity is 32,000 DLH, computed as 10,000 units 3.20 DLH per unit. 2. Compute the total overhead variance. 3. Compute the overhead controllable variance. 4. Compute the overhead volume variance. neware in the tabe holow

, 44:13 Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3.20 DLH per unit. For March, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following budget. The company actually operated at 90% capacity (11,250 units) in March and incurred actual total overhead costs of $148,175. Overhead Budget Production in units Budgeted variable overhead Budgeted fixed overhead 80% Operating Levels 10,000 $ 64,000 $ 80,000 1. Compute the standard overhead rate. Hint Standard allocation base at 80% capacity is 32,000 DLH, computed as 10,000 units 3.20 DLH per unit. 2. Compute the total overhead variance. 3. Compute the overhead controllable variance. 4. Compute the overhead volume variance. neware in the tabe holow

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Description: 44:13Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3.20 DLH per unit. ForMarch, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared th

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 12E

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A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
Calculating amount of factory overhead applied to work in process The overhead application rate for a company is 2.50 per unit, made up of 1.00 for fixed overhead and 1.50 for variable overhead. Normal capacity is 10,000 units. In one month, there was an unfavorable flexible budget variance of 200. Actual overhead for the month was 27,000. What was the amount of the budgeted overhead for the actual level of production?
Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: The standard price paid per pound of direct materials is 1.60. The standard rate for labor is 8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows: The company expects to work 12,000 direct labor hours during the year; standard overhead rates are computed using this activity level. For every small stapler produced, the company produces two regular staplers. Actual operating data for the year are as follows: a. Units produced: small staplers, 35,000; regular staplers, 70,000. b. Direct materials purchased and used: 56,000 pounds at 1.5513,000 for the small stapler and 43,000 for the regular stapler. There were no beginning or ending direct materials inventories. c. Direct labor: 14,800 hours3,600 hours for the small stapler and 11,200 hours for the regular stapler. Total cost of direct labor: 114,700. d. Variable overhead: 607,500. e. Fixed overhead: 350,000. Required: 1. Prepare a standard cost sheet showing the unit cost for each product. 2. Compute the direct materials price and usage variances for each product. Prepare journal entries to record direct materials activity. 3. Compute the direct labor rate and efficiency variances for each product. Prepare journal entries to record direct labor activity. 4. Compute the variances for fixed and variable overhead. Prepare journal entries to record overhead activity. All variances are closed to Cost of Goods Sold. 5. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both products. Can you compute the total direct materials and direct labor usage variances? Explain.
Direct labor hours are estimated as 2,000 in Quarter 1; 2,100 in Quarter 2; 1,900 in Quarter 3; and 2,300 in Quarter 4. Prepare a manufacturing overhead budget using the information provided.
Shinto Corp. uses a standard cost system and manufactures one product. The variable costs per product follow: Budgeted fixed overhead costs for the month are $4,000, and Shinto expected to manufacture 2,000 units. Actual production, however, was only 1,800 units. Materials prices were 10% over standard, and labor rates were 5% over standard. Of the factory overhead expense, only 80% was used, and fixed overhead was $100 over budget. The actual variable overhead cost was $4,800. In materials usage, 8% more parts were used than were allowed for actual production by the standard, and 6% more labor hours were used than were allowed. Required: Calculate the materials and labor variances. Calculate the variances for overhead by the four-variance method. (Hint: First compute the fixed and variable overhead rates per hour.)
Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 2 DLH per unit. For March, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following budget. The company actually operated at 90% capacity (11,250 units) in March and incurred actual total overhead costs of $76,335. Overhead Budget 80% Operating Levels Production in units 10,000 Budgeted variable overhead $ 32,000 Budgeted fixed overhead $ 42,000 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 20,000 DLH, computed as 10,000 units × 2.00 DLH per unit.2. Compute the total overhead variance.3. Compute the overhead controllable variance.4. Compute the overhead volume variance.
Current Attempt in Progress Sheridan Company's overhead rate was based on estimates of $168,000 for overhead costs and 16,800 direct labour hours. Sheridan's standards allow 2 hours of direct labour per unit produced, Production in May was 750 units, and actual overhead incurred in May was $19,000. The overhead budgeted for 1,500 standard direct labour hours is $14,700 ($4,200 fixed and $10,500 variable). (a) Calculate the total, budget, and volume variances for overhead. Total overhead variance Overhead budget variance Overhead volume variance $ $ $ Unfavourable Neither favourable nor unfavourable Favourable
Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 2 DLH per unit. For March, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following budget. The company actually operated at 90% capacity (11,250 units) in March and incurred actual total overhead costs of $129,230. 80% Operating Levels Overhead Budget Production in units 10,000 Budgeted variable overhead Budgeted fixed overhead $ 58,000 $ 68,000 1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 20,000 DLH, computed as 10,000 units 2.00 DLH per unit. 2. Compute the total overhead variance. 3. Compute the overhead controllable variance. 4. Compute the overhead volume variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the overhead controllable variance. (Indicate the effect of the variance by selecting…
Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 2 DLH per unit. For March, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following budget. The company actually operated at 90% capacity (11,250 units) in March and incurred actual total overhead costs of $76,335. Overhead Budget 80% Operating Levels Production in units 10,000 Budgeted variable overhead $ 32,000 Budgeted fixed overhead $ 42,000
The predetermined overhead rate for Sunland Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $9400 variable and $6950 fixed, and standard hours allowed for the product produced in June was 3200 hours. The total overhead variance is $3750 F. $350 F. $350 U. O $3750 U.
Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3 DLH per unit. For March, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following budget. The company actually operated at 90% capacity (11,250 units) in March and incurred actual total overhead costs of $103,425. Overhead Budget Production in units. Budgeted variable overhead Budgeted fixed overhead 1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 10,000 units x 3.00 DLH per unit. 2. Compute the total overhead variance. 3. Compute the overhead controllable variance. 4. Compute the overhead volume variance. Required 1 Required 2 Complete this question by entering your answers in the tabs below. 80% Operating Levels 10,000 $ 42,000 $ 57,000 Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 30,000 DLH, computed as 10,000…