Exercise 2: Draw up a flexible budget for overhead expenses on the basis of the following data and determine the overhead rates at 70%, 80% and 90% plant capacity. At 80% Capacity OMR. Variable Overheads: Indirect labor 12,000 Stores including spares 4,000 Semi-variable Overheads: Power (30% fixed, 70% variable) Repairs and maintenance (60% fixed, 40% variable) 20,000 2,000 Fixed Overheads: Depreciation 11,000 Insurance 3,000 Salaries 10,000 Total Overheads 62,000 Estimated direct labor hours 1,24,000 hrs.

0 Required information [The following information applies to the questions displayed below] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct materials: 5 pounds at $11 per pound Direct labor: 3 hours at $12 per hour $ 55 36 Variable overhead: 3 hours at $7 per hour 21 Total standard cost per unit $ 112 The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,600 units and incurred the following costs: a. Purchased 154,000 pounds of raw materials at a cost of $9.50 per pound. All of this material was used in production. b. Direct laborers worked 63,000 hours at a rate of $13 per hour. c. Total variable manufacturing overhead for the month was $510,930. 5. If Preble had purchased 178,000 pounds of materials at $9.50 per pound and used 154,000 pounds in production,…

Paragraph Styles Question 1: WPC Company's Budget and actual costs per unit are provided below for the most recent period. During this period, 700 units were actually produced. Product Product Standard Cost Actual Cost Materials Unit Price Per Metre $2.00 $2.20 Metres Standard $10.00 Actual 5.2 $11.44 Direct labour Hours Hourly Rate $50 $5.50 Standard 3. $15.00 Actual 3.2 $17.60 Variable overhead Hours Hourly Rate Standard 4 $3.00 $12.00 $3.10 $13.02 Actual 4.2 Total unit cost $37.00 $42.06 Required: Given the information above, compute the following variances. Also indicate if the variances are favorable or unfavorable.

Question Content Area Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information: Line Item Description Units Setups Inspections Assembly (dlh) Hooks 4,000 1 3 1 Nooks 8,000 2 2 1 Activity Total Activity - Base Usage Budgeted Activity Cost Setups 20,000 $60,000 Inspections 24,000 120, 000 Assembly (dlh) 28,000 420,000 The total factory overhead to be allocated to Nooks is a. $600, 000 b. $488,000 c. $400, 000 d. $300,000