The records of Norton, Inc. show the following for July. Standard 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 Direct labor efficiency variance Actual variable overhead 1.2 $ 27 60,000 74,000 $1,465,000 $ 37,000 U $1,794,000 Required: Compute the direct labor and variable overhead price and efficiency variances. (Do not round intermediate calo effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not selec

The records of Norton, Inc. show the following for July. Standard 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 Direct labor efficiency variance Actual variable overhead 1.2 $ 27 60,000 74,000 $1,465,000 $ 37,000 U $1,794,000 Required: Compute the direct labor and variable overhead price and efficiency variances. (Do not round intermediate calo effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not selec

Name: mn.8 The records of Norton, Inc. show the following for July.Standard
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Description: mn.8 The records of Norton, Inc. show the following for July.Standard labor-hours allowed per unit of outputStandard variable overhead rate per standard direct labor-hourGood units producedActual direct labor-hours workedActual total direct laborDire

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 12P: Overhead application rate Roll Tide Manufacturing Inc. uses a job order cost system and standard...

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Overhead application rate Roll Tide Manufacturing Inc. uses a job order cost system and standard costs. It manufactures one product, whose standard cost follows: The standards are based on normal capacity of 2,700 direct labor hours. Actual activity for March follows: Required: 1. Compute the variable and fixed factory overhead rates per unit. 2. Compute the variable and fixed overhead rates per direct labor hour. 3. Determine the total fixed factory overhead based on normal capacity.
The 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 unita produced Actual direct labor-hours worked Actual total direct labor cost 632 3,560 13,775 $ 504,000 Direct labor efficiency variance Actual variable overhead $ 17.2987 $ 440,800 Required: Compute the direct labor and variable overhead price and efficiency varlances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" fo unfavorable. If there is no effect, do not select either option. Direct labor: Price variance Efficiency variance Variable overhead: Price variance Efficiency variance
Sterner Company computes its predetermined overhead application rate using direct labor hours as the activity base. Estimated and actual overhead costs and direct labor hours for the year were as follows:Estimated ActualManufacturing overhead costs . . . . . . . . . . . . $126,000 $118,020Direct labor hours . . . . . . . . . . . . . . . . . . . . . . 10,000 9,200Based on this information, manufacturing overhead wasa. underapplied by $2,100.b. underapplied by $3,420.c. overapplied by $3,420.d. overapplied by $5,580.e. none of the above.