2. Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of each variance by selectingfavorable, unfavorable, or no variance.)Actual Cost00$000$$Standard Cost Antuan Company set the following standard costs per unit for its product.Direct materials (6 pounds @ $5 per pound)$ 30Direct labor (2 hours @ $17 per hour)34Overhead (2 hours @ $18.50 per hour).37Standard cost per unit$ 101The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factory'scapacity of 20,000 units per month. Following are the company's budgeted overhead costs per month at the 75% capacitylevel.Overhead Budget (75% Capacity)Variable overhead costsIndirect materials.$ 45,000Indirect labor180,000Power45,000Maintenance90,000360,000Total variable overhead costsFixed overhead costs24,000Depreciation-BuildingDepreciation-Machinery80,000Taxes and insurance12,000Supervisory salaries.79,000Total fixed overhead costs195,000Total overhead costs$ 555,000The company incurred the following actual costs when it operated at 75% of capacity in October.Direct materials (91,000 pounds @ $5.10 per pound)$ 464,100526,125Direct labor (30,500 hours @ $17.25 per hour)Overhead costsIndirect materials$ 44,250Indirect labor177,750Power43,000Maintenance96,00024,000Depreciation-BuildingDepreciation-Machinery75,00011,500Taxes and insuranceSupervisory salaries.89,000560,500Total costs$ 1,550,725

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Description: 2. Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of each variance by selectingfavorable, unfavorable, or no variance.)Actual Cost00$000$$Standard Cost Antuan Company set the following standar

The direct material variation is the difference between the standard cost of materials derived from…

Business

Accounting

Overhead (2 hours @ $18.50 per hour) Standard cost per unit 37 $ 101 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of capacity of 20,000 units per month. Following are the company's budgeted overhead costs per month at level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 45,000 180,000 Indirect labor Power 45,000 Maintenance 90,000 360,000 Total variable overhead costs Fixed overhead costs 24,000 Depreciation-Building Depreciation-Machinery Taxes and insurance 80,000 12,000

Overhead (2 hours @ $18.50 per hour) Standard cost per unit 37 $ 101 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of capacity of 20,000 units per month. Following are the company's budgeted overhead costs per month at level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 45,000 180,000 Indirect labor Power 45,000 Maintenance 90,000 360,000 Total variable overhead costs Fixed overhead costs 24,000 Depreciation-Building Depreciation-Machinery Taxes and insurance 80,000 12,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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! Required information [The following information applies to the questions displayed below.] Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Production (in units) Overhead Variable overhead Fixed overhead Total overhead Flexible Budget at 80% Capacity 54,750 $ 301,125 54,750 $ 355,875 1. Standard overhead rate 2. Standard overhead applied 3. Overhead variance Actual Results 51,600 $367,700 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 27,375 DLH, computed as 54,750 units x 0.5 DLH per unit. 2. Compute the standard overhead applied. 3. Compute the total overhead variance. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.
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Required information [The following information applies to the questions displayed below.] Cooper Corporation produces decorator wall coverings. Budgeted production is 240,000 square feet per month, and the standard direct labor requirement to make this amount is 6,000 hours. All overhead is allocated based on direct labor hours. The following information is available: Actual Budgeted Amounts Results Production in units. Total labor hours 260,000 320,000 8,000 6,500 Total variable overhead Total fixed overhead $ 9,750 $ 12,000 $6,500 $ 6,800 $ 16,250 $ 18,800 Total overhead The overhead spending variance for the month in question was:
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Anthon Corporation has provided the following information regarding last month's activities. Units produced (actual) 10,920 Master production budget Direct materials. Direct labor $ 240,372 203,952 278,613 Overhead Standard costs per unit Direct materials Direct labor Variable overhead Actual costs Direct materials purchased and used Direct labor Overhead Direct materials Direct labor Variable overhead Fixed overhead $ 3.96 per liter x 5 liters per unit of output $ 33.60 per hour x 0.50 hour per unit $ 29.90 per direct labor-hour Variable overhead is applied on the basis of direct labor-hours. Required: Calculate all variable production cost price and efficiency variances and fixed production cost price and production volume variances. 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. Price Variance $ 234,780 (60,200 liters) 181,260 (5,300 hours)…
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BUDGETED DATA: Budgeted machine hours 60,000 machine hours Budgeted direct labor hours 400,000 direct labor hours Budgeted direct labor costs $6,000,000 Budgeted manufacturing overhead costs $10,000,000 Company allocates manufacturing overhead using direct labor hours used ACTUAL DATA: Actual manufacturing overhead costs incurred $9,700,000 Actual machine hours used 62,000 machine hrs used Actual direct labor hours used 380,000 actual DL hours used 1. Calculate budgeted (applied) manufacturing overhead rate per direct labor hour 2. Calculate applied (allocated) manufacturing overhead:
QUESTION God’s Will Ent., GWT, started its business in 2021. The following information was available for January to March 31, 2021 for the company that started to produce a single product: GHȻSelling price per unit 200Direct materials per unit 40Direct Labour per unit 20Fixed factory overhead per month 60,000 Variable factory overhead per unit 10Fixed selling overheads…
Belinda Company has the following budgeted variable costs per unit produced: Direct materials $ 7.50 Direct labour 2.24 Variable overhead: Supplies 0.33 Maintenance 0.17 Power 0.18 Budgeted fixed overhead costs per month include supervision of $68,000, depreciation of $71,000, and other overhead of $205,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 120,000 units, 130,000 units, and 145,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.)
Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 2 DLH per unit. For March, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following budget. The company actually operated at 90% capacity (11,250 units) in March and incurred actual total overhead costs of $76,335. Overhead Budget 80% Operating Levels Production in units 10,000 Budgeted variable overhead $ 32,000 Budgeted fixed overhead $ 42,000
Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Flexible Budget at 80% Capacity Actual Results Production (in units) 54,750 51,600 Overhead Variable overhead $ 301,125 Fixed overhead 54,750 Total overhead $ 355,875 $ 367,700 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 27,375 DLH, computed as 54,750 units × 0.5 DLH per unit.2. Compute the standard overhead applied.3. Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)