WBC Co. uses a standard costing system. The absorption rate is based on labor hours. Data for April 2019 are as follows: Budget 10,000 10,000 P45,000 Labor hours worked Standard hours produced Fixed overhead cost Actual 11,135 10,960 P46,200

WBC Co. uses a standard costing system. The absorption rate is based on labor hours. Data for April 2019 are as follows: Budget 10,000 10,000 P45,000 Labor hours worked Standard hours produced Fixed overhead cost Actual 11,135 10,960 P46,200

Name: 118. Fixed overhead capacity variance is nearest toA. P4,710 F B. P4,7
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Description: 118. Fixed overhead capacity variance is nearest toA. P4,710 F B. P4,710 U C. P5,110 FD. PS,110 U WBC Co. uses a standard costing system. The absorption rate is based on labor hours. Data for April 2019 are as follows:Budget10,00010,000P45,000Labor h

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...

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A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
Lake Balboa Manufacturing Company decides to relate total factory overhead costs to direct labor hours (DLH) to develop a cost-volume formula in the form of y = a + bx. Observations from 2019 are collected. They are given and on the excel file. Month Direct Labor Hours Factory Overhead January 9,000 13,000 February 19,000 20,000 March 11,000 14,000 April 14,000 16,000 May 23,000 25,000 June 12,000 20,000 July 12,000 20,000 August 22,000 23,000 September 7,000 14,000 October 13,000 22,000 November 15,000 18,000 December 17,000 18,000 Total 174,000 hours $225,000 In October of 2020, the company used 13,000 direct labor hours. Using the cost formula for factory overhead calculated using the High-Low Method, calculate the factory overhead for October 2020.
Swifty Corporation provide the information from its accounting records for 2019: Expected production 80000 labor hours, Actual production 76000 labor hours, Budgeted overhead 1500000, Actual overhead 1440000. How much is the overhead application rate if Swifty Corporation bases it on direct labor hours?
Buller Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2019:Budgeted manufacturing overhead costs Budgeted machine-hoursActual manufacturing overhead costs Actual machine-hoursRequired:$4,800,000 180,000 $3,990,000150,0001. Calculate the budgeted manufacturing overhead rate.2. Calculate the manufacturing overhead allocated during 2019.3. Calculate the amount of under- or overallocated manufacturing overhead. Whydo Buller’s managers need to calculate this amount?
Flandro Company uses a standard cost system and sets predetermined overhead rates on the basis of directlabor-hours. The following data are taken from the company’s budget for the current year:Denominator activity (direct labor-hours) ............... 5,000Variable manufacturing overhead cost .................. $25,000Fixed manufacturing overhead cost ...................... $59,000The standard cost card for the company’s only product is given below:Direct materials, 3 yards at $4.40 per yard ........................... $13.20Direct labor, 1 hour at $12 per hour ...................................... 12.00Manufacturing overhead, 140% of direct labor cost ............. 16.80Standard cost per unit .......................................................... $42.00During the year, the company produced 6,000 units of product and incurred the following costs:Materials purchased, 24,000 yards at $4.80 per yard ...... $115,200Materials used in production (in yards) .............................…
Flandro Company uses a standard cost system and sets predetermined overhead rates on the basis of directlabor-hours. The following data are taken from the company’s budget for the current year:Denominator activity (direct labor-hours) ............... 5,000Variable manufacturing overhead cost .................. $25,000Fixed manufacturing overhead cost ...................... $59,000The standard cost card for the company’s only product is given below:Direct materials, 3 yards at $4.40 per yard ........................... $13.20Direct labor, 1 hour at $12 per hour ...................................... 12.00Manufacturing overhead, 140% of direct labor cost ............. 16.80Standard cost per unit .......................................................... $42.00During the year, the company produced 6,000 units of product and incurred the following costs:Materials purchased, 24,000 yards at $4.80 per yard ...... $115,200Materials used in production (in yards) .............................…
Terrence Industries charges manufacturing overhead to products by using a predetermined application rate. computed on the basis of labor hours. The following data pertain to the current year: Budgeted manufacturing overhead Actual manufacturing overhead Budgeted labor hours Actual labor hours $2, 300,000 2,313,000 115, 000 116,750 Which of the following choices is the correct slalus of manufecturing overhead at year-end? Multiple Choice Overspplied by $13.000. Undereopled by $13,000. Overapplied by $22.000. Underappled by $22.000. Overapplied by $35.000.
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K Dakota Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Dakota allocates manufacturing overhead costs using direct manufacturing labor costs. Dakota provides the following information (Click the icon to view the information.) Read the requirements Requirement 1. Compute the actual and budgeted manufacturing overhead rates for 2020 (Enter your answer as a number [not as a percentage] rounded to two decimal places, XXX) Actual manufacturing overhead rate = 1.95 Budgeted manufacturing overhead rate 1.7 = Requirements BES 4 1. Compute the actual and budgeted manufacturing overhead rates for 2020 2. During March, the job-cost record for Job 626 contained the following information Direct materials used $55,000 Direct manufacturing labor costs $45,000 Compute the cost of Job 626 using (a) actual costing and (b) normal costing 3. At the end of 2020, compute the under- or…
Oriole Company provided the following information from its accounting records for 2019: Expected production 100000 labor hours Actual production 96000 labor hours Budgeted overhead $2100000 Actual overhead $1840000 How much is the overhead application rate if Oriole Company bases it on direct labor hours? $21.00 per hour $19.17 per hour $21.88 per hour $18.40 per hour
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