A company absorbs factory overheads rate based on production units. Closing inventories of finished goods are equal to 40% of the production demand. Opening inventories of finished goods are equal to 20% of the sales demand. Sales demand is 1 500 units. The budgeted fixed production overhead for the month is N$52 000. The budgeted production units are equal to actual production units. Calculate the factory overheads rate for the month.

Q: Greedy Co. uses a predetermined factory overhead rate based on direct labor hours. For the month of…

A: Overheads are the indirect costs related to production or manufacturing of goods. These costs can…

Q: The production supervisor of the Machining Department for Lei Company agreed to the following…

A: A flexible budget changes or flexes in response to increases in volume or activity. A flexible…

Q: Ash Ltd had total overheads for a month of £48,000. The total monthly budgeted labour hours were…

A: 1.What is the Quoted selling price of the Job.…

Q: Inc. employs 10 production workers, working 8 hours a day, 20 days per month, at a normal capacity…

A: Budgeting is the process of estimating outcomes of the activities in advance so that the proper…

Q: The total factory overhead for Big Light Company is budgeted for the year at $807,500. Big Light…

A: Direct Labor hours Night Lights = Budgeted Units * direct labor hours per unit

Q: The annual normal capacity for Saplot company is 36,000 machine hours, with fixed manufacturing…

A: Fixed overhead rate = budgeted fixed overhead /budgeted machine hours = 16920/36000 = $0.47 per hour

Q: A company absorbs factory overheads rate based on production units. Closing inventories of finished…

A: Calculation of Number of Units to be produced during the Month::: Let x be the number of units…

Q: Khalifa Construction's manufacturing costs for August when production was 1,000 units appear below:…

A: Flexible budget is that budget in which variable costs changes with change in level of activity.…

Q: Justine Company budgeted total variable overhead costs at P180,000 for the current period. In…

A: Formula: Applied overheads = Actual machine hours x Per hour rate

Q: True or False. If the budgeted factory overhead cost is $460,000, the budgeted direct labor hours is…

A: Factory overhead rate per hour = Budgeted factory overhead cost/Budgeted direct labor hour

Q: Maron manufactures a single product and has a JIT policy that ending inventory must equal 5% of the…

A: Overheads are the expenses incurred during manufacturing of an product, in which overheads are of…

Q: Thomas Textiles Corporation began November with a budget for 30,000 hours of production in the…

A: In every organization, Standards are established in advance on the basis of the standards set actual…

Q: Blumen Textiles Corporation began April with a budget for 31,000 hours of production in the Weaving…

A: (a) The Standard rate of variable overhead = $80,600 / 31,000 = $2.60 per hour so, The Variable…

Q: Avery Company uses a predetermined overhead rate based on direct labor hours. For the month of…

A: Manufacturing overhead: It is the indirect cost incurred as a part of manufacturing the products.…

Q: Georgia Company uses standard costs and a flexible budget for controlling its service activities. In…

A: Labor Rate Variance=Standard Rate-Actual Rate×Actual Hours Labor Efficiency Variance=Standard…

Q: Roget Factory has budgeted factory overhead for the year at $6,144,600. It plans to produce…

A: Factory overhead rate = Budgeted Factory overhead cost / Budgeted Direct labor hours

Q: a. Davey Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the…

A: a. Budget for factory overhead For October Particulars Amount Variable factory overhead…

Q: Blumen Textiles Corporation began April with a budget for 48,000 hours of production in the Weaving…

A: Variable factory overhead controllable variance = Standard variable overhead - Actual variable…

Q: The total factory overhead for Big Light Company is budgeted for the year at $1,663,130. Big Light…

A: Total factory overhead cost = $1,663,130 Total factory overhead cost will be applied to the Night…

Q: Blumen Textiles Corporation began April with a budget for 36,000 hours of production in the Weaving…

A:

Q: The following information relstes to a company that produces a single product. Esch unit requires…

A: Ending Inventory January = 8,000 + ( 28% of 53,000 ) = 22,840 February = 8,000 + ( 28% of 73,000 ) =…

Q: The production supervisor of the Machining Department for Hagerstown Company agreed to the following…

A: A flexible budget is a budget that adjusts or flexes with changes in volume or activity. The…

Q: The Sta. Ana Company has a budgeted normal monthly capacity of 27. 5,000 labor hours with a standard…

A: Definition: Direct labor variances: The difference between the actual labor cost in the production…

Q: XYZ Corporation uses a predetermined overhead application rate of P.30 per direct labor hour. During…

A: Actual hours = applied overhead / predetermined overhead application rate  = P363,000 /0.30 =…

Q: The production supervisor of the Machining Department for Hagerstown Company agreed to the following…

A: Budget means the expected value of future. Budget is not affected by the actual value as it is…

Q: Gerhan Company's flexible budget for the units manufactured in May shows $15,640 of total factory…

A:

Q: a. Prepare a flexible budget for the actual units produced for May, June, and July in the Machining…

A: Flexible budget for units produced actually in machine department for the month of May, June, and…

Q: The annual normal capacity for Saplot company is 36,000 machine hours, with fixed manufacturing…

A: fixed manufacturing overhead  RATE = BUDGETED fixed manufacturing overhead  / budgeted machine hours…

Q: Blumen Textiles Corporation began April with a budget for 43,000 hours of production in the Weaving…

A: Variance analysis: Variance analysis can be defined as the study conducted for the purpose of…

Q: Debs started manufacturing running shorts in January. Actual fixed manufacturing overheads are the…

A: Production for January = 5000 Production for February = 5000*110% = 5500 Fixed manufacturing…

Q: Farmer Ltd absorb overheads based on direct labour hours. The total budgeted overheads for the next…

A: Absorption costing: It is one of the managerial accounting methods under which all the costs that…

Q: Each unit of finished goods requires 2.5 direct labor-hours. What is the estimated direct labor cost…

A:

Q: A company set the total budgeted direct labor cost at P75,000 for the month for producing 5,000…

A: Direct labor efficiency variance = (Actual hours worked × standard rate) - (Standard hours×standard…

Q: he production supervisor of the Machining Department for Hagerstown Company agreed to the following…

A: may   June Total flexible budget $1,584,000 $1,893,600 $2,048,400 Actual cost $1,600,000…

Q: The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The…

A: The manufacturing overhead budget is defined as the estimated cost incurred in manufacturing or…

Q: Assume a company’s direct labor budget for July estimates 10,000 labor-hours to meet the month’s…

A: Manufacturing overheads means all type of indirect costs and expenses which are incurred for…

Q: The total factory overhead for Big Light Company is budgeted for the year at $807,500. Big Light…

A: Total Direct Labour Hours= Labour hour of night light+ Labour hour of desk lamps Labour hours of…

Q: MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost…

A: The question is based on the concept of Cost Accounting. Direct material budget is used to calculate…

Q: Woodman Company applies factory overhead on the basis of direct labor hours. Budget and actual data…

A: Factory Overheads are the indirect costs and expenses related to manufacturing and production of…

Q: Roget Factory has budgeted factory overhead for the year at $6,650,400. It plans to produce…

A: Factory overhead rate = Budgeted Overhead cost / Budgeted Direct labor hours

Q: The manufacturing overhead budget at Formica Corporation is based on budgeted direct labor-hours.…

A: The manufacturing overhead is the indirect costs which are involved in the product process. It…

Q: The LFH Corporation makes and sells a single product, Product T. Each unit of Product T requires 1.5…

A: Budgeted direct labour costs is the expected labour costs that is to be incurred on units to be…

Q: A company manufactures a single product for which the following data based on a budgeted capacity of…

A: Under marginal costing, fixed manufacturing overhead is treated as period cost and entire fixed…

Q: In Paige Company, direct labor is $20 per hour. The company expects to operate at 10,000 direct…

A: Introduction:   A static budget forecasts revenue and expenses over a specific time period and…

Q: The manufacturing overhead budget at Foshay Corporation is based on budgeted direct labor-hours. The…

A: Predetermined Overhead Rate = Estimated Manufacturing Overhead Cost Estimated units of allocation…

Q: A manufacturing company budgets sales of $70,000 during July. It pays sales commissions of 5% of…

A: Selling expenses: Sales commission (70000*5%)         = 3500 Salary of sales manager…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.