FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- The standard cost of product 2525 includes 4.10 hours of direct labour at $14.40 per hour. The predetermined overhead rate is $21.60 per direct labour hour. During July, the company incurred 11,170 hours of direct labour at an average rate of $14.80 per hour and $237,012 of manufacturing overhead costs. It produced 2,700 units. (a) Calculate the total, price, and quantity variances for labour. (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answers to O decimal places, e.g. 125.) Total labour variance Labour price variance Labour quantity variance eTextbook and Media Save for Later tA $ $ +A ta $ Favourable Unfavourable Neither favourable nor unfavourable Attempts: 0 of 3 used Submit Answerarrow_forwardKenmore Fabrication estimated that direct labor cost for the year would be $654,400. The company also estimated that fixed overhead would be $490,800 and variable overhead would be 35 percent of direct labor cost. Kenmore applies its overhead on the basis of direct labor cost. During the year, all fixed overhead costs were exactly as planned ($490,800) and variable overhead was also incurred as expected. There was $32,700 in underapplied overhead. How much did Kenmore spend on direct labor cost during the period?arrow_forwardSubject:- Accountingarrow_forward
- Compute the net overhead variance (indicate over-or underapplied manufacturing overhead)arrow_forwardTerrell Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Variable manufacturing overhead O $46 U $2.30 per hour The company has reported the following actual results for the product for July: Actual output Actual direct labor-hours Actual variable overhead rate S 2.10 per hour Actual variable overhead cost $ 4,998 The variable overhead efficiency variance for the month is closest to: $42 F Standard Quantity or Hours per Unit of Output O $46 F O $42 U Standard Price or Rate 0.30 hours 8,000 units 2,380 hoursarrow_forwardThe records of Heritage Home Supplies show the following for July: Standard direct labor-hours allowed per unit of output Standard variable overhead rate per standard direct labor-hour Good units produced Actual direct labor-hours worked Actual total direct labor cost Direct labor efficiency variance Actual variable overhead Required: Compute the direct labor and variable overhead price and efficiency variances. $ 34 3,600 13,925 $ 510,200 $ 17,670 F $ 473,450 Note: Do not round Intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct labor: Price variance Efficiency variance Variable overhead: Price variance Efficiency variancearrow_forward
- 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?arrow_forwardThe standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs 3 hours per unit at $0.71 per hour 3 hours per unit at $1.92 per hour Fixed overhead (based on 10,000 hours) Variable overhead Actual Costs Total variable cost, $18,200 Total fixed cost, $8,100 The variable factory overhead controllable variance is Oa. $3,800 unfavorable Ob. $3,800 favorable Oc. $3,040 favorable Od. Soarrow_forwardExample: To continue the example, assume XYZ Company incurred $180,000 of manufacturing expenses and that actual machine hours were 25,000. 1. Calculate the actual overhead rate based on machine hours. 2. Assume the variance is not material to XYZ Company. What journal entry would be made? 3. Assume the variance is material and that the applied overhead included in the ending balances in the work-in-process, finished goods, and cost of goods sold account is $50,000, $100,000, and $350,000, respectively. What amount of variance should be allocated to cost of goods sold?arrow_forward
- 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 2.25arrow_forwardSubject:- Account Jupiter Co. applies overhead based on direct labor hours. The variable overhead standard is 5 hours at $13 per hour. During February, Jupiter Co. spent $128,400 for variable overhead. 9,200 labor hours were used to produce 2,300 units. What is the variable overhead rate variance? 4arrow_forwardCoronado 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…arrow_forward
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