Managerial Accounting
17th Edition
ISBN: 9781260247787
Author: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Publisher: RENT MCG
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Textbook Question
Chapter 10.A, Problem 2E
EXERCISE 10A-2 Predetermined
Xonval Company's budgeted variable
- At a denominator activity' of 60:000 machine-hours, the company should produce 40,000 units of product.
- The company's actual operating results were:
Required:
- Compute the predetermined overhead rate and break it down into variable and fixed cost elements.
- Compute the standard hours allowed for the actual production.
- Compute the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances.
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Students have asked these similar questions
Problem-12.15
The standard and actual cost data of RIZWAN LTD. are as follows::
Standard
70,000 units @ Rs. 28
35,000 hrs @ Rs. 42
Actual
68,600units @ Rs. 24.50
42,000 hrs @ Rs. 45.50
Rs. 94,500
Direct Material
Direct Labour
Factory Overhead
50% of direct labour
Required:
a) Calculate
Material price variance and material quantity variance
Labour rate Variance and labour time variance
ii)
iii) Overhead variance
b) General journal entries to record the above information and to close the variance accounts.
Problem 10A-9 (Algo) Applying Overhead; Overhead Variances [LO10-3, LO10-4]
Baird Company makes Polish sausage. It applied manufacturing overhead to production based on standard direct labor-hours.
According to the company's planning budget, the following manufacturing overhead costs should be incurred at an activity level of
30,000 labor-hours (the denominator activity level):
Variable manufacturing overhead cost
Fixed manufacturing overhead cost
Total manufacturing overhead cost
During the most recent year, the following operating results were recorded:
Activity:
Actual labor-hours worked
Standard labor-hours allowed for the actual output
Actual
Cost:
Actual variable manufacturing overhead cost incurred
Actual fixed manufacturing overhead cost incurred
At the end of the year, the company's Manufacturing Overhead account contained the following data:
Manufacturing Overhead
409,800 Applied
31,800
Debit
$ 172,500
232,500
$ 405,000
Credit
27,000
28,000
378,000
$ 199,800
$ 210,000…
Question Content Area
The following data relate to direct labor costs for the current period:
Line Item Description
Value
Standard costs
7,000 hours at $11.80
Actual costs
6,300 hours at $10.80
The direct labor rate variance is
a. $14,560 unfavorable
b. $6,300 favorable
c. $14,560 favorable
d. $8,260 favorable
Chapter 10 Solutions
Managerial Accounting
Ch. 10.A - EXERCISE 10A-1 Fixed Overhead Variances LO10-4...Ch. 10.A - EXERCISE 10A-2 Predetermined Overhead Rate;...Ch. 10.A - Prob. 3ECh. 10.A - EXERCISE 10A-4 Fixed Overhead Variances LO10-4...Ch. 10.A - EXERCISE 10A5 Using Fixed Overhead Variances LO104...Ch. 10.A - EXERCISE 10A-6 Predetermined Overhead Rate LO10-4...Ch. 10.A - EXERCISE 10A-7 Relations Among Fixed Overhead...Ch. 10.A - Prob. 8PCh. 10.A - PROBLEM 10A-9 Applying Overhead; Overhead...Ch. 10.A - PROBLEM 10A-10 Comprehensive Standard Cost...
Ch. 10.A -
PROBLEM 10A-11 Comprehensive Standard Cost...Ch. 10.A - Prob. 12PCh. 10.B - EXERCISE 10B-1 Standard Cost Flows; Income...Ch. 10.B - Prob. 2ECh. 10.B - Prob. 3ECh. 10.B - Prob. 4ECh. 10.B - Prob. 5PCh. 10.B - Prob. 6PCh. 10 - Prob. 1QCh. 10 - Why are separate price and quantity variances...Ch. 10 - 10-3 Who is generally responsible for the...Ch. 10 - The materials price variance can be computed at...Ch. 10 - 10-5 If the materials price variance is favorable...Ch. 10 - Prob. 6QCh. 10 - Prob. 7QCh. 10 - 10-8 What effect, if any, would you expect...Ch. 10 - 10-9 If variable manufacturing overhead is applied...Ch. 10 - 10-10 Why can undue emphasis on labor efficiency...Ch. 10 -
The Excel worksheet form that appears below is to...Ch. 10 - Prob. 2AECh. 10 - Prob. 1F15Ch. 10 - Prob. 2F15Ch. 10 - Prob. 3F15Ch. 10 - Prob. 4F15Ch. 10 - Prob. 5F15Ch. 10 - Prob. 6F15Ch. 10 - Prob. 7F15Ch. 10 - Prob. 8F15Ch. 10 - Prob. 9F15Ch. 10 - Preble Company manufactures one product. Its...Ch. 10 - Prob. 11F15Ch. 10 - Prob. 12F15Ch. 10 - Prob. 13F15Ch. 10 - Prob. 14F15Ch. 10 - Prob. 15F15Ch. 10 - EXERCISE 10-1 Direct Materials Variances LO10-1...Ch. 10 -
EXERCISE 10-2 Direct Labor Variances...Ch. 10 -
EXERCISE 10–3 Variable Overhead Variances...Ch. 10 - EXERCISE 10-4 Direct Labor and Variable...Ch. 10 -
EXERCISE 10-5 Working Backwards from Labor...Ch. 10 - EXERCISE 10-6 Direct Materials and Direct Labor...Ch. 10 - EXERCISE 10-7 Direct Materials Variances LOIO-1...Ch. 10 -
EXERCISE 10-8 Direct Materials and Direct Labor...Ch. 10 -
PROBLEM 10-9 Comprehensive Variance Analysis...Ch. 10 -
PROBLEM 10-10 Multiple Products, Materials, and...Ch. 10 - PROBLEM 10-11 Direct Materials and Direct Labor...Ch. 10 - PROBLEM 10-12 Variance Analysis in a...Ch. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - PROBLEM 10-15 Comprehensive Variance Analysis...Ch. 10 - Prob. 16PCh. 10 - Prob. 17C
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