At Cady Company, maintenance is a variable cost that varies directly with machine-hours. The performance report for June showed that actual maintenance costs totaled P9,600 and that the associated spending variance was P400 unfavorable. If 8,000 machine-hours were actually worked during June, the budgeted maintenance cost per machine-hour was:

At Cady Company, maintenance is a variable cost that varies directly with machine-hours. The performance report for June showed that actual maintenance costs totaled P9,600 and that the associated spending variance was P400 unfavorable. If 8,000 machine-hours were actually worked during June, the budgeted maintenance cost per machine-hour was:

Name: A. P1.30B. P1.25C. P1.20D. P1.15E. Answer not given At Cady Company, m
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Description: A. P1.30B. P1.25C. P1.20D. P1.15E. Answer not given At Cady Company, maintenance is a variable cost that varies directly with machine-hours.The performance report for June showed that actual maintenance costs totaled P9,600 andthat the associated spe

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 11EB: Fitzgerald Company manufactures sewing machines, and they produced 2,500 this past month. The...

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Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing basis are as follows: During the year, the company had the following activity: Actual fixed overhead was 12,000 less than budgeted fixed overhead. Budgeted variable overhead was 5,000 less than the actual variable overhead. The company used an expected actual activity level of 12,000 direct labor hours to compute the predetermined overhead rates. Any overhead variances are closed to Cost of Goods Sold. Required: 1. Compute the unit cost using (a) absorption costing and (b) variable costing. 2. Prepare an absorption-costing income statement. 3. Prepare a variable-costing income statement. 4. Reconcile the difference between the two income statements.
Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450 hours per the standard cost card. Their employees were paid $15.75 per hour for the month of June. The standard cost card uses $15.50 as the standard hourly rate. A. Compute the direct labor rate and time variances for the month of June, and also calculate the total direct labor variance. B. If the standard rate per hour was $16.00, what would change?
At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid $32 per hour for labor, for a total of $718,848. The standard hours per unit are 6.4, and the standard labor wage rate is $38.40 per hour. A. What are the actual hours worked? B. What are the standard hours for the units made? C. What is the direct labor rate variance for April? D. What Is the direct labor time variance for April? E. What is the total direct labor variance for April?
Fitzgerald Company manufactures sewing machines, and they produced 2,500 this past month. The standard variable manufacturing overhead (M0H) rate used by the company is $6.75 per machine hour. Each sewing machine requires 13.5 machine hours. Actual machine hours used last month were 33,500, and the actual variable MOH rate last month was $7.00. Calculate the variable overhead rate variance and the variable overhead efficiency variance.
At IT Company, maintenance cost is exclusively a variable cost that varies directly with machine-hours. The performance report for July showed that actual maintenance costs totaled P9,800 and that the associated spending variance was P200 unfavorable. If 8,000 machine hours were actually worked during July, the budgeted maintenance cost per machine-hour was: A.P1.20 B.P1.25 C.P1.275 D.P1.225
At Overland Company, maintenance cost is exclusively a variable cost that varies directly with machine-hours. The performance report for July showed that actual maintenance costs totaled $9,800 and that the associated rate variance was $200 unfavorable. If 8,000 machine-hours were actually worked during July, the budgeted maintenance cost per machine-hour was:
A manager prepared the following table by which to analyze labor costs for the month: Actual hours at Actual rate is P10,000; Actual hours at Standard rate is P9,800 and Standard hours at Standard rate, P 8,820. What variance is P1,180? * idle labor variance labor efficiency variance labor spending variance total labor variance
ABC Corporation has prepared the following overhead budget for next month. Activity level Variable overhead costs: Supplies Indirect labor Fixed overhead costs: Supervision Utilities Depreciation Total overhead cost 3,700 machine-hours $ 21,090 35,520 18,100 7,100 8,100 $ 89,910 The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 3,600 machine-hours rather than 3,700 machine-hours? (Round your intermediate calculations to 2 decimal places.)
For the month of April, Turing Ltd reported the following variances: £ Sales price Direct materials price Direct labour rate Direct labour efficiency Fixed overhead spending Direct materials usage 3,000 (A) 600 (F) 800 (A) 1,000 (F) 900 (A) 400 (A) Sales volume 2,000 (F) The original budgeted operating profit for the month was £26,800. What was the actual operating profit for the month of April? (Enter your answer as an integer.)
Spiral Company’s budgeted fixed factory overhead cost is P50,000 per month plus a variable factory overhead rate of P4 per direct labor hour. The direct labor hours for March production was 18,000. An analysis of the factory overhead indicates that in March, Spiral had an unfavorable spending variance of P1,000 and an unfavorable volume variance of P500. What is the actual factory overhead measured in March?
Chaumat Co's performance report for last month shows that actual indirect materials cost, a variable cost, was $29,800. In addition, the spending variance for indirect materials was $2,200 favourable. During that month, the company worked 8,000 machine-hours. Budgeted activity for the month had been 8,200 machine-hours. The cost formula per machine-hour for indirect materials must have been closest to: O $3.63. O $3.73. O $3.91. O $4.00.