Selected operating information on three different companies for a recent year is given below. Company Full-capacity machine-hoOurs Budgeted machine-hours* Actual machine-hours Standard machine-hours allowed for actual production 38,000 37,000 37,000 27,000 25, 500 26,700 28,000 28, 000 27,000 37, 200 24,900 28,000 *Denominator activity for computing the predetermined overhead rate. Required: For each company, state whether the volume variance would be favorable or unfavorable. (Indicate the effect of cach varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance.)) Company A Company B Company C

Selected operating information on three different companies for a recent year is given below. Company Full-capacity machine-hoOurs Budgeted machine-hours* Actual machine-hours Standard machine-hours allowed for actual production 38,000 37,000 37,000 27,000 25, 500 26,700 28,000 28, 000 27,000 37, 200 24,900 28,000 *Denominator activity for computing the predetermined overhead rate. Required: For each company, state whether the volume variance would be favorable or unfavorable. (Indicate the effect of cach varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance.)) Company A Company B Company C

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Description: Selected operating information on three different companies for a recent year is given belowCompanyFull-capacity machine-hoursBudgeted machine-hours*Actual machine-hoursStandard machine-hours allowed for actualproduction38,00037,00037,00027,00025, 5

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A company identified the following partial list of activities, costs, and activity drivers expected for the next year: Budgeted Costs $ 83,600 $ 8,800 $ 40,500 Activity Extrusion costs Handling costs Packaging costs Production volume Batches made Orders filled Product A 750,000 units 200 batches 75 Cost Driver Number batches made Number of orders filled Number of units made Product B 600,000 units 750 batches 200 Calculate activity rates for each of the three activities using activity-based costing (ABC). 4
A company allocates $7.50 of overhead per direct labor hour to products. The company uses a plantwide overhead rate with direct labor hours as the allocation base. Given the amounts below, how many direct labor hours does the company expect in department 2? Budgeted: Department 1 Department 2 Manufacturing overhead costs $ 74,358 $ 49,572 Direct labor hours 6,610 DLH ? DLH Machine hours 700 MH 800 MH
Mountain tops applies overhead on the basis of direct labor hours and reports the following information: Budget Actual Overhead $450,000 $452, 000 Direct Labor Hours 75,000 77,000 Direct Materials $195,000 Direct Labor 333,000 A. What is the predetermined overhead rate? B. How much overhead was applied during the year? C. Was overhead over applied, or under applied and by how much?
Salado Company has a standard cost system in which it applies overhead to products based on the standard direct labour-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year $300,000 Budgeted standard direct labour-hours (denominator level of activity) 50,000 Hours Actual direct labour-hours 49,000 Hours Standard direct labour-hours allowed for the actual output 48,000 Hours Actual fixed overhead cost for the year $295,500 Required: Compute the fixed portion of the predetermined overhead rate for the year. Compute the fixed overhead budget and volume variances.
Just answer the questions for nos. 20-22 based on the picture.
Mountain Peaks applies overhead on the basis of machine hours and reports the following information: Budget Actual Overhead $420,000 $418,000 Machine hours 70,000 68,000 Direct materials $210,000 Direct labor $350,000 A. What is the predetermined overhead rate? per machine hour B. How much overhead was applied during the year? machine hours C. Was overhead over- or underapplied, and by what amount? D. What is the journal entry to dispose of the over- or underapplied overhead? If an amount box does not require an entry, leave it blank. Accounts Payable Accounts Receivable Cash Cost of Goods Sold Manufacturing Overhead
Below is the selected information for a company for last year: Budgeted fixed manufacturing overhead cost Denominator activity (machine-hours) Standard machine-hours allowed per unit Actual number of units produced Underapplied fixed manufacturing overhead $270,000 45,000 3 14,000 $15,200 Actual fixed cost for last year was: 236,800 O 267,200 254,800 285,200
Computing departmental overhead allocation rates The Oakman Company (see Short Exercise S19-1) has refined its allocation system by separating manufacturing overhead costs into two cost pools—one for each department. The estimated costs for the Mixing Department, $510,000, will be allocated based on direct labor hours, and the estimated direct labor hours for the year are 170,000. The estimated costs for the Packaging Department, $300,000, will be allocated based on machine-hours, and the estimated machine hours for the year are 40,000. In October, the company incurred 38,000 direct labor hours in the Mixing Department and 10,000 machine hours in the Packaging Department. Requirements Compute the predetermined overhead allocation rates. Round to two decimal places. Determine the total amount of overhead allocated in October.
The (partial) cost sheet for the single product manufactured at Vienna Company follows. Direct labor (17 hours @ $25) $ 425 Variable overhead (17 hours @ $2) 34 Fixed overhead (17 hours @ $4) 68 The master budget level of production is 82,000 direct-labor hours, which is also the production volume used to compute the fixed overhead application rate. Other information available for operations over the past accounting period include the following. Actual variable overhead incurred $ 132,000 Actual fixed overhead incurred 343,200 Direct labor efficiency variance 162,000 U Variable overhead price variance 30,000 F Required:a. What was the variable overhead efficiency variance?b. What was the fixed overhead price variance?c. What was the fixed overhead production volume variance? (For all requirements, indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no…
The following data pertain to the current year:Budgeted manufacturing overhead: OMR 390,000Actual manufacturing overhead: OMR 440,000Budgeted machine hours: 30,000 hrs.Actual machine hours: 33,000 hrs.Overhead applied to production totaled: Select one: a. 484,000 b. 455,000 c. 429,000 d. 355,000
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