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 6E
EXERCISE 10A-6 Predetermined
Lasser Company plans to produce 10:000 units next period at a denominator activity of 30:000 direct labor-hours. The direct labor wage rate is $12 per hour. The company's standards allow 2.5 yards of direct materials for each unit of product: the standard material cost is S8.60 per yard. The company's budget includes variable
Required:
- Using 30,000 direct labor-hours as the denominator activity' compute the predetermined overhead rate and break it down into variable and fixed elements.
- Complete the
standard cost card below for one unit of product:
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ces
The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the
upcoming fiscal year:
1st Quarter 2nd Quarter
10,100
9,100
3rd Quarter
11,100
Units to be produced
Each unit requires 0.25 direct labor-hours and direct laborers are paid $13.00 per hour.
In addition, the variable manufacturing overhead rate is $1.80 per direct labor-hour. The fixed manufacturing overhead is $81,000 per
quarter. The only noncash element of manufacturing overhead is depreciation, which is $21,000 per quarter.
Required:
1. Calculate the company's total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole.
2. and 3. Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing
overhead for each quarter of the upcoming fiscal year and for the year as a whole.
Complete this question by entering your answers in the tabs below.
Req 1
Req 2 and 3…
ces
The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the
upcoming fiscal year:
1st Quarter 2nd Quarter
10, 100
9,100
3rd Quarter
11,100
Units to be produced
Each unit requires 0.25 direct labor-hours and direct laborers are paid $13.00 per hour.
In addition, the variable manufacturing overhead rate is $1.80 per direct labor-hour. The fixed manufacturing overhead is $81,000 per
quarter. The only noncash element of manufacturing overhead is depreciation, which is $21,000 per quarter.
Required:
1. Calculate the company's total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole.
2. and 3. Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing
overhead for each quarter of the upcoming fiscal year and for the year as a whole.
Complete this question by entering your answers in the tabs below.
Req 1
Req 2 and 3…
Predetermined Overhead Rate
Lasser Company plans to produce 10,000 units next period at a denominator activity of 30,000 direct labor-hours. The direct labor wage rate is $12 per hour. The company’s standards allow 2.5 yards of direct materials for each unit of product; the standard material cost is $8.60 per yard. ‘I he company’s budget includes variable manufacturing overhead cost of $1.90 per direct labor-hour and fixed manufacturing overhead of $168,000 per period.
Required:
1. Using 30,000 direct labor-hours as the denominator activity, compute the predetermined overhead rate and break it down into variable and fixed elements.
2. Complete the standard cost card below for one unit of product:
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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