Buis Corporation, which makes landing gears, has provided the following data for a recent month: Budgeted production 1,200 gears Standard machine hours per gear Budgeted supplies cost 5.9 machine-hours $6.50 per machine-hour Actual production Actual machine hours Actual supplies cost (total) 1,300 gears 7,950 machine-hours $ 49,742 Determine the rate and efficiency variances for the variable overhead item supplies and indicate whether those variables are favorable or unfavorable. Yogi Company expects to produce 2,080 units in January which will require 10,400 hours of direct labor and 2,210 units in February which will require 11,050 hours of direct labor. Yogi budgets $9 per unit for variable manufacturing overhead; $1,900 per month for depreciation; and $75,320 per month for other fixed manufacturing overhead costs. Prepare Yogi's manufacturing overhead budget for January and February, including the predetermined overhead allocation rate using direct labor hours as the allocation base.
Buis Corporation, which makes landing gears, has provided the following data for a recent month: Budgeted production 1,200 gears Standard machine hours per gear Budgeted supplies cost 5.9 machine-hours $6.50 per machine-hour Actual production Actual machine hours Actual supplies cost (total) 1,300 gears 7,950 machine-hours $ 49,742 Determine the rate and efficiency variances for the variable overhead item supplies and indicate whether those variables are favorable or unfavorable. Yogi Company expects to produce 2,080 units in January which will require 10,400 hours of direct labor and 2,210 units in February which will require 11,050 hours of direct labor. Yogi budgets $9 per unit for variable manufacturing overhead; $1,900 per month for depreciation; and $75,320 per month for other fixed manufacturing overhead costs. Prepare Yogi's manufacturing overhead budget for January and February, including the predetermined overhead allocation rate using direct labor hours as the allocation base.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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