FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Flagstaff Company has budgeted July production of 6,900 units. Variable factory overhead is $13 per unit. Budgeted fixed factory overhead is $14,000, which includes $2.000 of factory equipment depreciation. Compute the total budgeted overhead for July Multiple Choice $20.970. $14.000. $18.900. $22.970arrow_forwardNuArt Company's budgeted production for November is 5,500 units. Budgeted component unit costs include: direct materials, $24; direct labor, $30; variable overhead, $18. Budgeted fixed overhead is $100,000. NuArt's actual production for November was 6,000 units. Actual component unit costs include: direct materials, $24.50; direct labor, $29; variable overhead, $18.40. Actual fixed overhead was $94,000. NuArt's flexible budget amount for direct labor in November would be: Multiple Choice A)$100,000 B)$156,000 C)$174,000 D)$180,000.arrow_forwardThe following information relates to Steele Manufacturing's overhead costs for the month: Static budget variable overhead $35,900 Static budget fixed overhead $15,600 Static budget direct labor hours 15,400 hours Static budget number of units 5,500 units Steele allocates variable manufacturing overhead to production based on standard direct labor hours. Steele reported the following actual results for last month: actual variable overhead, $35,400;actual fixed overhead, $15,400; actual production of 5,400 units at 2.4 direct labor hours per unit. The standard direct labor time is 2.8 direct labor hours per unit. Compute the variable overhead efficiency variance. (Round the answer to the nearest dollar.) A. $4,474 U B. $5,033 U C. $4,474 F D. $5,033 Farrow_forward
- The production budget for Manner Company shows units to produce as follows: July, 650; August, 710; and September, 570. Each unit produced requires one hour of direct labor. The direct labor rate is budgeted at $17 per hour in July and August, but is budgeted to be $17.75 per hour in September. Prepare a direct labor budget for the months July, August, and September. Units to produce Direct labor hours needed Cost of direct labor MANNER COMPANY Direct Labor Budget July 650 August 710 September 570 units hsarrow_forwardCholla 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.arrow_forwardThe following data pertains to the month of October for Elm. Co. when production was budgeted to be 5,000 units of P90. P90 has standard costs per unit of: 3 lbs of Direct Materials at a cost of $7.00 per lb; .20 hours of Direct Labor at $18.00 per hour, and variable overhead assigned on the basis of 0.05 machine hours at a rate of $50 per machine hour. In October the productio of P90 was 4,600 units, using 15,100 lbs of material costing a total of $107,778. A.Determine the direct materials price variance. (negative numbers indicate a favorable variance)arrow_forward
- Starts Inc. using production levels of 62,000, 67,200, and 69,300 units produced. The following additional information is necessary to complete the budget. Prepare a flexible production budget for the year ending December 31 for :Variable costs: Direct labor ($18.00 per unit) Direct materials ($5.00 per unit) Variable manufacturing costs ($8.00 per unit) Fixed costs: Supervisor’s salaries $27,000 Rent 18,000 Depreciation on equipment 82,000arrow_forwardThe production budget for Manner Company shows units to produce as follows: July, 700; August, 760; and September, 620. Each unit produced requires one hour of direct labor. The direct labor rate is budgeted at $17 per hour in July and August, but is budgeted to be $17.75 per hour in September. Prepare a direct labor budget for the months July, August, and September. Units to produce Direct labor hours needed Cost of direct labor MANNER COMPANY Direct Labor Budget July 700 August 760 September 620 unitsarrow_forwardThe production budget for Manner Company shows units to produce as follows: July, 630; August, 690; and September, 550. Each un produced requires three hours of direct labor. The direct labor rate is budgeted at $16 per hour in July and August, but is budgeted to be $16.75 per hour in September. Prepare a direct labor budget for the months July, August, and September. Units to produce Direct labor hours needed Cost of direct labor MANNER COMPANY Direct Labor Budget July August 630 690 September 550 unitsarrow_forward
- Ribo Company’s budgeted total variable overhead is at P180,000 for the current period. In addition, the company’s budgeted costs for factory rent is at P200,000, depreciation on office equipment- P12,000, office rent- P28,000 and depreciation of factory equipment-P20,000. All these costs were based upon estimated machine hours of 80,000. At the end of the period, The Factory Overhead Control account had a balance of P375,000. Actual machine hours were 70,000. How much is the factory overhead variance for the period?arrow_forwardThe total factory overhead for Big Light Company is budgeted for the year at $1,163,800. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 17,900 units. Each night light requires 2 hours of direct labor. Desk lamps are budgeted for 21,800 units. Each desk lamp requires 3 hours of direct labor. a. Determine the total number of budgeted direct labor hours for the year. direct labor hours b. Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places. $ per direct labor hour c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places. Night lights $ Desk lamps $ per unit per unitarrow_forwardMicroMatic Company's static budget for 14,000 units of production includes $56,000 for direct materials, $28,000 for direct labor, utilities of $7,000, and supervisor salaries of $18,000. A flexible budget for 16,000 units of production would show a. the same cost structure in total b. direct materials of $64,000, direct labor of $32.000, utilities of $8,000, and supervisor salaries of $18,000 Oc. direct materials of $56,000, direct labor of $42,000, utilities of $7,000, and supervisor salaries of $21,000 Od. total variable costs of $126.800arrow_forward
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