THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1-10. Quiz Company determined the following standards on January 1. Direct materials Direct labor Variable overhead Fixed overhead Units produced Direct materials purchased Direct materials used The fixed overhead rate was based on budgeted production of 54,000 units. The actual results for the year were as follows Direct labor Variable overhead Fixed overhead 5 lbs per unit 0.75 DL hrs per unit 0.75 DL hrs per unit 0.75 DL hrs. per unit $2.00 per lb. $18.00 per DL hr $3.00 per DL hr $4.00 per DL hr Example $12,345 Favorable 53,000 units 274,000 lbs. at $2.50 per lb. 270,300 lbs. 40,100 DL hrs. at $17.95 per DL hr $122,000 $161,700 Note: For each variance, the first blank will be the dollar amount of the variance. Give your answer using dollar signs and commas but no decim label the variance as either favorable or unfavorable 4 Determine the fixed overhead spending variance, and Label the variance as either favorable or unfavorable

THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1-10. Quiz Company determined the following standards on January 1. Direct materials Direct labor Variable overhead Fixed overhead Units produced Direct materials purchased Direct materials used The fixed overhead rate was based on budgeted production of 54,000 units. The actual results for the year were as follows Direct labor Variable overhead Fixed overhead 5 lbs per unit 0.75 DL hrs per unit 0.75 DL hrs per unit 0.75 DL hrs. per unit $2.00 per lb. $18.00 per DL hr $3.00 per DL hr $4.00 per DL hr Example $12,345 Favorable 53,000 units 274,000 lbs. at $2.50 per lb. 270,300 lbs. 40,100 DL hrs. at $17.95 per DL hr $122,000 $161,700 Note: For each variance, the first blank will be the dollar amount of the variance. Give your answer using dollar signs and commas but no decim label the variance as either favorable or unfavorable 4 Determine the fixed overhead spending variance, and Label the variance as either favorable or unfavorable

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Description: Please do not give solution in image format thanku THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1-10.Quiz Company determined the following standards on January 1.Direct materialsDirect laborVariable overhead.Fixed overheadUnits producedDirect mate

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 30P: Primera Company produces two products and uses a predetermined overhead rate to apply overhead....

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Coops Stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate on 24,286 direct labor hours. At the end of the year, actual overhead was $90,000 and the total direct labor hours were 24,100. What is the entry to dispose of the over applied or under applied overhead?
A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the activity for the cost driver was estimated as 2,500 hours. If product A utilized 1,350 hours and product 8 utilized 1,100 hours, what was the total amount of overhead assigned to the products? A. $35000 B. $30.800 C. $37,800 D. $68,600
During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of $125,900. Overhead is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.
Primera Company produces two products and uses a predetermined overhead rate to apply overhead. Primera currently applies overhead using a plantwide rate based on direct labor hours. Consideration is being given to the use of departmental overhead rates where overhead would be applied on the basis of direct labor hours in Department 1 and on the basis of machine hours in Department 2. At the beginning of the year, the following estimates are provided: Actual results reported by department and product during the year are as follows: Required: 1. Compute the plantwide predetermined overhead rate and calculate the overhead assigned to each product. 2. Calculate the predetermined departmental overhead rates and calculate the overhead assigned to each product. 3. Using departmental rates, compute the applied overhead for the year. What is the under- or overapplied overhead for the firm? 4. Prepare the journal entry that disposes of the overhead variance calculated in Requirement 3, assuming it is not material in amount. What additional information would you need if the variance is material to make the appropriate journal entry?
When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would be $75,000 and manufacturing would require 25,000 machine hours in the next year. At the end of the year, it found that actual overhead was $74,000 and manufacturing required 24,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under- or over applied overhead.
The actual overhead for a company is $73,175. Overhead was based on 4,500 machine hours and was $3,325 over applied for the year. What is the overhead application rate per direct labor hour? What is the journal entry to dispose of the under applied overhead?
The records of Burris Inc. reflect the following data: Work in process, beginning of month2,000 units one-half completed at a cost of 1,250 for materials, 675 for labor, and 950 for overhead. Production costs for the monthmaterials, 99,150; labor, 54,925; factory overhead, 75,050. Units completed and transferred to stock38,500. Work in process, end of month3,000 units, one-half completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost.
PREDETERMINED FACTORY OVERHEAD RATE Marston Enterprises calculates a predetermined factory overhead rate so that factory overhead may be applied to production during the month. It calculates the overhead using three different methods and then decides which one to use. Total estimated factory overhead costs are 600,000. Total estimated direct labor hours are 30,000. Total estimated direct labor costs are 1,200,000. Total machine hours are estimated to be 200,000. Calculate the predetermined overhead application rates based on (1) direct labor hours, (2) direct labor costs, and (3) machine hours.
Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: The standard price paid per pound of direct materials is 1.60. The standard rate for labor is 8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows: The company expects to work 12,000 direct labor hours during the year; standard overhead rates are computed using this activity level. For every small stapler produced, the company produces two regular staplers. Actual operating data for the year are as follows: a. Units produced: small staplers, 35,000; regular staplers, 70,000. b. Direct materials purchased and used: 56,000 pounds at 1.5513,000 for the small stapler and 43,000 for the regular stapler. There were no beginning or ending direct materials inventories. c. Direct labor: 14,800 hours3,600 hours for the small stapler and 11,200 hours for the regular stapler. Total cost of direct labor: 114,700. d. Variable overhead: 607,500. e. Fixed overhead: 350,000. Required: 1. Prepare a standard cost sheet showing the unit cost for each product. 2. Compute the direct materials price and usage variances for each product. Prepare journal entries to record direct materials activity. 3. Compute the direct labor rate and efficiency variances for each product. Prepare journal entries to record direct labor activity. 4. Compute the variances for fixed and variable overhead. Prepare journal entries to record overhead activity. All variances are closed to Cost of Goods Sold. 5. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both products. Can you compute the total direct materials and direct labor usage variances? Explain.
Meed Company estimates the company will incur $65,000 in overhead costs and 5,000 direct labor hours during the year. Actual direct labor hours were 4,550. Calculate the predetermined overhead allocation rate using direct labor hours as the allocation base, and prepare the journal entry for the allocation of overhead. Calculate the predetermined overhead allocation rate. Fill in the labels and complete the formula below. Predetermined overhead ÷ = allocation rate ÷ = per direct labor hour Prepare the journal entry for the allocation of overhead. First, select the formula to calculate the overhead costs allocated. Fill in the labels and complete the formula below. × = Allocated overhead costs × = Prepare the journal entry for the allocation of overhead. Date Accounts and Explanation Debit Credit
D. Avery Company uses a predetermined overhead rate based on direct labor hours. For the month of October, Avery's budgeted overhead was P300,000 based on a budgeted volume of 100,000 direct labor hours. Actual overhead amounted to P325,000 with actual direct labor hours totaling 110,000. Compute for the following: _17. Predetermined overhead rate _18. Factory overhead charged to Work in Process account _19. Under / (Over) applied factory overhead _20 - 22. Assume the following amounts of applied FOH in each account. Allocate the under / over applied to these three accounts: Cost of Goods sold Ending Finished Goods inventory Ending Work in Process inventory P200,000 100,000 30,000
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