Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 13, Problem 13.3ME
Mini-Exercise 13.3
LO 6
Underapplied
Required:
How many direct labor hours did Tyler Company incur during August?
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QUESTION 10
The following information is available from Pavit Company for its operations in March:
Factory overhead incurred
• Variable overhead expenses, incurred
• Fixed overhead expenses, budgeted
• Direct labor hours (DLH) worked
• Standard direct labor hours allowed for the units manufactured
• Denominator level of activity, in DLHS
• Actual variable Overhead rate DLH worked
$40,000
$24,150
$18,000
4,200
4,000
4,500
$5.75
• Standard variable overhead rate per DLH
Pavit uses direct labor hours (DLHS) to apply factory overhead cost.
$5.00
Required:
1. Compute the spending, efficiency and flexible-budget variances for Pavit's yariable overhead in March 2021.
2. Compute the spending, production-volume and flexible-budget variances for Pavit's fixed overhead in March 2021.
PROBLEM I
ABC Company's total overhead costs at various levels of activity are presented below:
March
April
May
June.
Machine Hours Total Overhead Costs
$216,800
$194,000
$239,600
$262,400
60,000
50,000
70,000
80,000
Assume that the overhead costs above consist of utilities, supervisory salaries, and
maintenance. At the 50,000 machine-hour level of activity these costs are:
Utilities (V).
Supervisory salaries (F).
Maintenance (M)..
Total overhead cost
V = Variable; F = Fixed; M = Mixed
The company wants to break down the maintenance cost into its basic variable and fixed
cost elements.
Required:
$ 54,000
62,000
78.000
$194.000
a. Estimate the maintenance cost for June.
b.
Use the high-low method to estimate the cost formula for maintenance cost.
c. Estimate the total overhead cost at an activity level of 55,000 machine hours.
Question 10
O.K. Company uses a job order cost accounting system and allocates its overhead on the
basis of direct labor costs. O.K. expects to incur $1,400,000 of overhead during the next
period and expects to use 50,000 labor hours at a cost of $10.00 per hour. What is O.K.
Company's overhead application rate?
O 3.57%
O 35.71%
O 280%
O 179%
O 2,800%
Question 11
F2
F6
F7
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F3
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F4
F5
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Chapter 13 Solutions
Accounting: What the Numbers Mean
Ch. 13 - Prob. 13.1MECh. 13 - Mini-Exercise 13.2 LO 5, 6 Calculate predetermined...Ch. 13 - Mini-Exercise 13.3 LO 6 Underapplied overhead...Ch. 13 - Mini-Exercise 13.4 LO 7 Statement of cost of goods...Ch. 13 - Prob. 13.5MECh. 13 - Prob. 13.6MECh. 13 - Exercise 13.7 LO 2 Value chain classifications...Ch. 13 - Prob. 13.8ECh. 13 - Exercise 13.9 LO 3, 4 Cost classifications For...Ch. 13 - Exercise 13.10
LO 3, 4
Cost classifications For...
Ch. 13 - Exercise 13.11
LO 4
Cost classifications Aussie...Ch. 13 - Exercise 13.12
LO 4
Cost classifications College...Ch. 13 - Exercise 13.13
LO 5
Product costing—various issues...Ch. 13 - Exercise 13.14
LO 5
Product costing—manufacturing...Ch. 13 - Exercise 13.15
LO 5, 6
Manufacturing...Ch. 13 - Exercise 13.16 LO 5, 6 Manufacturing...Ch. 13 - Prob. 13.17ECh. 13 - Prob. 13.18ECh. 13 - Prob. 13.19ECh. 13 - Exercise 13.20
LO 8
Variable versus absorption...Ch. 13 - Problem 13.21
LO 9
Activity-based costing MedTech,...Ch. 13 - Prob. 13.22PCh. 13 - Prob. 13.23PCh. 13 - Prob. 13.24PCh. 13 - Prob. 13.25PCh. 13 - Prob. 13.26PCh. 13 - Prob. 13.27PCh. 13 - Prob. 13.28PCh. 13 - Case 13.29 LO 4, 5, 7 Cost of goods manufactured,...Ch. 13 - Prob. 13.30CCh. 13 - Prob. 13.31CCh. 13 - Prob. 13.32C
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