FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Variable overhead
Fixed overhead
Total manufacturing costs
70,200
$231,775
The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw
materials inventories, therefore, can be ignored.
Overhead controllable variance $
Overhead volume variance
25,300
Compute the overhead controllable variance and the overhead volume variance.
$
to
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Transcribed Image Text:Variable overhead Fixed overhead Total manufacturing costs 70,200 $231,775 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. Overhead controllable variance $ Overhead volume variance 25,300 Compute the overhead controllable variance and the overhead volume variance. $ to
Swifty Corporation manufactures a single product. The standard cost per unit of product is shown below.
Direct materials-1 pound plastic at $7 per pound
Direct labor-1.5 hours at $12.50 per hour
Variable manufacturing overhead
Fixed manufacturing overhead
Total standard cost per unit
Direct materials (5,330 pounds)
Direct labor (7,690 hours)
$37,843
$7.00
98,432
18.75
9.00
The predetermined manufacturing overhead rate is $12 per direct labor hour ($18.00 ÷ 1.5). It was computed from a master
manufacturing overhead budget based on normal production of 7,800 direct labor hours (5,200 units) for the month. The master
budget showed total variable overhead costs of $46,800 ($6.00 per hour) and total fixed overhead costs of $46,800 ($6.00 per hour).
Actual costs for October in producing 5,200 units were as follows.
9.00
$43.75
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Transcribed Image Text:Swifty Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $7 per pound Direct labor-1.5 hours at $12.50 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Direct materials (5,330 pounds) Direct labor (7,690 hours) $37,843 $7.00 98,432 18.75 9.00 The predetermined manufacturing overhead rate is $12 per direct labor hour ($18.00 ÷ 1.5). It was computed from a master manufacturing overhead budget based on normal production of 7,800 direct labor hours (5,200 units) for the month. The master budget showed total variable overhead costs of $46,800 ($6.00 per hour) and total fixed overhead costs of $46,800 ($6.00 per hour). Actual costs for October in producing 5,200 units were as follows. 9.00 $43.75
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