Consider a manufacturer that makes a certain product. Variable manufacturing overhead and fixed manufacturing overhead areallocated to each unit made based on budgeted direct labour-hours. The following are the production data. (There were no beginningor ending inventories.)Budgeted variable overhead rate per DLHBudgeted DLHS per unitData for May are as follows:Budgeted production volumeActual direct labour-hoursActual variable overhead costs1,500 units10,900 DLHS$ 92,6502,100 unitS$ 90,000$108,000Actual production volumeBudgeted fixed overhead costsActual fixed overhead costsRequired:1-a. Calculate the direct labour-hours management will have expected to incur in light of the production volume achieved.Direct labour-hourshours1-b. Which amount is relevant for determining labour efficiency variance?Relevant for determining labour efficiency variance2. Calculate all the variable overhead variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" forunfavourable, and "None" for no effect (i.e., zero variance).)Variable overhead rate varianceVariable overhead efficiency varianceTotal variable overhead variance3. Calculate all the fixed overhead variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" forunfavourable, and "None" for no effect (i.e., zero variance).)Budget varianceVolume variance

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Description: Consider a manufacturer that makes a certain product. Variable manufacturing overhead and fixed manufacturing overhead areallocated to each unit made based on budgeted direct labour-hours. The following are the production data. (There were no beginn

>Variances can be summed up as 'difference' between certain amounts. >In costing, Variances…

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Consider a manufacturer that makes a certain product. Variable manufacturing overhead and fixed manufacturing overhead are allocated to each unit made based on budgeted direct labour-hours. The following are the production data. (There were no beginning or ending inventories.) Budgeted variable overhead rate per DLH Budgeted DLHS per unit Data for May are as follows: Budgeted production volume Actual direct labour-hours Actual variable overhead costs 1,500 units 10,900 DLHS $ 92,650 2,100 units $ 90,000 $108,000 Actual production volume Budgeted fixed overhead costs Actual fixed overhead costs

Consider a manufacturer that makes a certain product. Variable manufacturing overhead and fixed manufacturing overhead are allocated to each unit made based on budgeted direct labour-hours. The following are the production data. (There were no beginning or ending inventories.) Budgeted variable overhead rate per DLH Budgeted DLHS per unit Data for May are as follows: Budgeted production volume Actual direct labour-hours Actual variable overhead costs 1,500 units 10,900 DLHS $ 92,650 2,100 units $ 90,000 $108,000 Actual production volume Budgeted fixed overhead costs Actual fixed overhead costs

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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The measure of activity in the standard costing system used at Esta GmbH is machining hours. The company's flexible manufacturing overhead budget and then data regarding the most recent period's operations are given below: Flexible Budget: Budgeted Level of Activity: 6,600 machining hours Overhead costs at the Budgeted activity level: Variable Overhead Cost: $17,226 Fixed Overhead Cost: $13,992 Most Recent period's operations: Actual level of activity: 7,200 machining hours Standard level of activity for output: 7,140 machining hours Actual total variable overhead cost: $17,856 Actual total fixed overhead cost: $14,256 PART A What is the variable overhead rate variance? (936 favorable, 481 unfavorable, 630 unfavorable, 779 favorable, OR 2,267 favorable) PART B What is the variable overhead efficiency variance? (157 unfavorable, 1409 unfavorable, 1566 unfavorable, 1488 unfavorable, OR 149 unfavorable) PART C What is the fixed overhead budget variance? (264 unfavorable, 1272…
Ocean Company makes calendars. Information on cost per unit is as follows: Direct materials $1.50 Direct labor 1.20 Variable overhead 0.90 Variable marketing expense 0.40 Fixed marketing expenses totaled $12,000 and fixed administrative expenses totaled $32,000. The price per calendar is $15. What is the break-even point in units?
manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturin overhead are given below: Level of activity Overhead costs at the denominator activity level: Variable overhead cost Fixed overhead cost The following data pertain to operations for the most recent period: Actual hours Standard hours allowed for the actual output Actual total variable manufacturing overhead cost Actual total fixed manufacturing overhead cost 2,550 DLHs $ 8,600 $ 35,125 2,700 DLHs 2,597 DLHs $ 9,200 $ 35,525 How much overhead was applied to products during the period to the nearest dollar? Note: Do not round Intermediate calculations. Multiple Cholce $44.125 $43.725 $44.725 $44.531 $44.725
Nevada Corporation makes a product with the following standard costs: Standard Price or Rate Standard Quantity or Hours 6.4 ounces $ 0.4 hours S 0.4 hours $ 3.00 per ounce 13.00 per hour 5.00 per hour The company reported the following results concerning this product in March. Direct materials Direct labor Variable overhead. Originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate $ S $ O $3,277 F O $3,390 U O $3,390 F O $3,277 U Standard Cost Per Unit S S S 4,800 units 4,900 units 30,230 ounces 1,910 hours 32,600 ounces 2.90 per ounce 12.40 per hour 4.90 per hour 19.20 5.20 2.00 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for March is:
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Crash Bang, Co. uses a standard cost system and provides the following information: Standards: Static budget variable overhead $5,580.00. Static budget fixed overhead $22,380.00. Static budget direct labor hours 573 hours. Static budget number of units 21,200 units. Static budget direct labor hours 0.026 hours per unit. Crash Bang, Co. allocates manufacturing overhead to production based on standard direct labor hours. Crash Bang, Co. reported the following actual results for 2020: Actual: Number of units produced 20,800. Actual variable overhead $5,300.00 Actual fixed overhead $24,400.00. Actual direct labor hours 499. (Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Compute the variable overhead allocation rates.
This Company uses standard costing. Variable overhead is applied at $8 per direct labor hour. Data for the month of September follows: Actual overhead variable costs $78,000 Standard hours allowed for actual production 10,000 Actual labor hours worked 9,800 How much is the controllable overhead spending variance? a. $2,000 favorable b. $400 favorable c. $400 unfavorable d. $2,000 unfavorable
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The Illustrative Corporation recorded the following budgeted and actual information relating to fixed overhead costs for its Z-Line of products Standard fixed overhead per direct labor hour Standard direct labor hours per unit Budgeted production Budgeted fixed overhead costs $3 0.75 3,400 $7.650.00 Actual production in units Actual fixed overhead costs incurred What is Illustrative's fixed manufacturing overhead volume variance? A. $2.025.00 favorable OB. $4.950.00 favorable OC. $2,025.00 unfavorable D. $4.950.00 unfavorable 4,300 $2.700.00
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