allowed for actual output of the period. During the recent year, the following data were collected: Total budgeted fixed overhead cost for the year Budgeted standard direct labour-hours Actual fixed overhead cost for the year Actual direct labour-hours Standard direct labour-hours allowed for the actual output $109,720 $106,520 21,100 22,500 19,600 Required 1. Compute the fixed portion of the predetermined overhead rate for the year. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH 2. Compute the fixed overhead budget and volume variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (l.e., zero varlance).) Fixed overhead budget variance Fixed overhead volume variance

allowed for actual output of the period. During the recent year, the following data were collected: Total budgeted fixed overhead cost for the year Budgeted standard direct labour-hours Actual fixed overhead cost for the year Actual direct labour-hours Standard direct labour-hours allowed for the actual output $109,720 $106,520 21,100 22,500 19,600 Required 1. Compute the fixed portion of the predetermined overhead rate for the year. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH 2. Compute the fixed overhead budget and volume variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (l.e., zero varlance).) Fixed overhead budget variance Fixed overhead volume variance

Name: Happy Valley Pet Products uses a standard costing system that applies
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Description: Happy Valley Pet Products uses a standard costing system that applies overhead to products based on standard direct labour-hoursallowed for actual output of the period. During the recent year, the following data were collected:Total budgeted fixed o

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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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 $ 4.00 Total budgeted fixed overhead cost per year $ 528,180 Budgeted direct labor-hours (denominator level of activity) 75,455 Actual direct labor-hours 84,000 Standard direct labor-hours allowed for the actual output 81,000 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 intermediate calculations and final 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.)
Swifty Corporation provide the information from its accounting records for 2019: Expected production 80000 labor hours, Actual production 76000 labor hours, Budgeted overhead 1500000, Actual overhead 1440000. How much is the overhead application rate if Swifty Corporation bases it on direct labor hours?
Mayer, Inc., asks for your help in regards to its analysis of its variable and fixed overhead costs for October 2021. The information fo the October 2021 overhead expenditures is as follows: Budgeted output units Budgeted total fixed overhead Budgeted variable overhead 3,200 $ 20,800 $5.00Per DLH Budgeted direct labor hours Hours per 2.0unit Actual fixed overhead costs incurred $ 23,000 Actual direct labor hours incurred 7,200 Variable overhead costs incurred Actual units manufactured Actual units sold S 37,500 3,400 3,200 Required: Compute a 4-variance analysis, for manufacturing overhead, for the plant controller.
REQUIREMIENTS: What is the predetermined overhead rate? What is the amount of overhead applied for February? If the actual overhead for February is $64,700, what is the overhead variance and is it overapplied or underapplied?
The accountant for Barry Ltd compares each month’s actual results with a monthly plan. The standarddirect labor rates and the standard hours allowed, given the actual output in April, are shown in thefollowing schedule:Standard direct labor rate per hour Standard direct labor hours allowed,given April outputLabour class III $26.00 1,000Labour class II $22.00 1,000Labour class I $12.00 1,000A new union contract negotiated in March resulted in actual wage rates that differed from thestandard rates. The actual direct labor hours worked and the actual direct labor rates per hour forApril was as follows.Actual direct labor rate per hour Actual direct labor hoursLabour class III $28.00 1,100Labour class II $23.00 1,300Labour class I $14.00 750Required:a) Calculate the following variances for April, indicating whether each is favorable or unfavorable:I direct labor rate variance for each labor class.ii direct labor efficiency variance for each labor class.b) Discuss two advantages and two…
The chief cost accountant for Voltaire Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning May 1 would be $2,340,000 and total direct labor costs would be $1,800,000. During May, the actual direct labor cost totaled $145,000 and factory overhead cost incurred totaled $192,100. Question Content Area a. What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals. fill in the blank 1772e2fb3039fb1_1 % Question Content Area b. Journalize the entry to apply factory overhead to production for May. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - Question Content Area c. What is the May 31 balance of the account Factory Overhead—Blending Department? Amount: $fill in the blank 1ea1070e903a021_1 Debit or Credit? d. Does the balance in part (c) represent overapplied or underapplied factory…
During the year, 3,600 units were produced, 14,500 hours were worked, and the actual manufacturing overhead was $49,000. Actual fixed manufacturing overhead costs equalled the budgeted fixed manufacturing overhead costs. Overhead is applied based on direct labour hours. (a) Calculate the total, fixed, and variable predetermined manufacturing overhead rates. (Round answers to 2 decimal places, e.g. 15.25.) Variable manufacturing overhead $ Fixed manufacturing overhead $ Total manufacturing overhead $ Rate 2.25
The following data were gathered from the Pal Company's overhead costs for the January, 2020 production activity: Actual total overhead incurred - P112,500Budgeted fixed overhead - P40,500Standard direct-labor hours allowed for actual production - 15,000Standard fixed overhead rate per direct-labor hour - P2.25Standard variable overhead rate per direct-labor hour - P3.25 Pal Company has been maintaining a standard absorption and flexible budgeting system. It also uses the two-variance method (two-way) for overhead variances. What is Pal's volume (denominator) variance for January, 2020? P6,750F P8,250F P6,750U P8,250U
Stuart Corporation expects to incur indirect overhead costs of $102,000 per month and direct manufacturing costs of $13 per unit. The expected production activity for the first four months of the year are as follows. Estimated production in units Required a. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year. b. Allocate overhead costs to each month using the overhead rate computed in Requirement a. c. Calculate the total cost per unit for each month using the overhead allocated in Requirement b. Required A Required B Complete this question by entering your answers in the tabs below. January February March 4,500 8,200 5,000 Required C Predetermined overhead rate $ Answer is complete but not entirely correct. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year. April 6,300 4 X per unit Required A Required B >
Coronado Corporation accumulates the following data relative to jobs started and finished during the month of June 2022. Costs and Production Data Raw materials unit cost Raw materials units Direct labor payroll Direct labor hours Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted fixed overhead for June Variable overhead rate per machine hour Fixed overhead rate per machine hour Overhead controllable variance $ Overhead volume variance Actual $ $4.40 11,000 $177,600 14,800 $242,800 Standard $4.30 10,100 $174,420 15,300 Overhead is applied on the basis of standard machine hours. 3.20 hours of machine time are required for each direct labor hour. The jobs were sold for $475,000. Selling and administrative expenses were $40,100. Assume that the amount of raw materials purchased equaled the amount used. Compute the overhead controllable variance and the overhead volume variance. $244,800 49,960 $89,928 $3.20 $1.80…
Since, the predetermined overhead rate and the budgeted factory overhead is given. We need to calculate the amount of the allocation base in order to know how Mystic Inc. computed its predetermined overhead rate for 2010. Equation to compute the Predetermined Overhead rate: Given: Predetermined Overhead rate = Predetermined rate: $4.25 per direct labor dollar Budgeted Factory Overhead: $1,275,000 Solution: $4.25 = ? = $300,000 = = $300,000 is the budgeted direct labor cost.