Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 50,000 machine hours per year, which represents 25,000 units of output. Annual budgeted fixed factory overhead costs are $250,000 and the budgeted variable factory overhead cost rate is $4 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 20,000 units, which took 41,000 machine hours. Actual fixed factory overhead costs for the year amounted to $245,000, while the actual variable overhead cost per unit was $3.90. Assume that at the end of the year, management of Patel and Sons decides that the overhead cost variances should be allocated to WIP Inventory, Finished Goods Inventory, and Cost of Goods Sold (CGS) using the following percentages: 10%, 20%, and 70%, respectively. Provide the proper journal entry to close out the manufacturing overhead variances for the year.   Record the entry to close the variance accounts to Work in process inventory, Finished goods inventory, and Cost of goods sold.   Transaction            General Journal               Debit           Credit 1                    Work in process inventory                        Finished goods inventory                       Cost of goods sold        Variable overhead spending variance

Yammy Company currently produces ultimate discs in an automated process. Expected production per month is 80,000 units. The required direct materials costs $0.20 per unit and labor costs $0.10 per unit. Manufacturing fixed overhead costs are $5,000 per month. Manufacturing overhead is allocated based on units of production.  What is the flexible budget total product costs for 80,000 and 40,000 units, respectively?

Byrd Company produces one product, a putter called GO-Putter. Byrd uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 100,000 units per year. The total budgeted overhead at normal capacity is $850,000 comprised of $300,000 of variable costs and $550,000 of fixed costs. Byrd applies overhead on the basis of direct labor hours. During the current year, Byrd produced 81,800 putters, worked 97,800 direct labor hours, and incurred variable overhead costs of $173,825 and fixed overhead costs of $642,300. (a) Compute the predetermined variable overhead rate and the predetermined fixed overhead rate. (Round answers to 2 decimal places, e.g. 2.75.) Variable Fixed Predetermined Overhead Rate

Mcniff Corporation makes a range of products. The company's predetermined overhead rate is $17 per direct labor-hour, which was calculated using the following budgeted data:         Variable manufacturing overhead $ 80,000 Fixed manufacturing overhead $ 260,000 Direct labor-hours   20,000     Management is considering a special order for 710 units of product O96S at $65 each. The normal selling price of product O96S is $76 and the unit product cost is determined as follows:         Direct materials $ 38.00 Direct labor   17.00 Manufacturing overhead applied    17.00 Unit product cost $ 72.00     If the special order were accepted, normal sales of this and other products would not be affected. The company has ample excess capacity to produce the additional units. Assume that direct labor is a variable cost, variable manufacturing overhead is really driven by direct labor-hours, and total fixed manufacturing overhead would not be affected by the special…

The total factory overhead for Garment Heater Company is budgeted for the year at $300,000. Garment Heater Company manufactures two types of furnaces: Red Deluxe and Energy Green. The Red Deluxe requires 10 direct labor hours for manufacture. The Energy Green requires 5 direct labor hours for manufacture Each product is budgeted for 200 units of production for the year. Determine (a) total number of budgeted direct labor hours for the year (b) the single plant wide factory overhead rate (c) the factory overhead allocated per unit for each product using the single plantwide factory overhead rate.

Over and Under, Inc. manufactures weaving looms. Before the period began, the company prepared the following manufacturing overhead budget for an expected activity level of 15,000 direct labor hours (DL hrs): Variable Manufacturing Overhead Costs $322,500 Fixed Manufacturing Overhead Costs $205,000 By the end of the period, the company noted that 3,000 fewer direct labor hours were logged than expected. The total actual manufacturing overhead costs incurred during the period was $545,000, of which, $325,000 was fixed. Which of the following statements is incorrect for the above data? A. The total volume variance can be calculated by multiplying the unit variable cost by the difference between the expected DL hrs and the actual DL hrs. B. The master budget variance related to fixed manufacturing overhead costs for the period equals $120,000. C. The volume variance for variable manufacturing overhead costs is favorable because fewer DL hrs were logged during production than expected. D.…