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 15, Problem 15.23P
Problem 15.23
LO 5, 6
Fixed
Units produced | 39,000 |
Fixed overhead costs incurred | $37,000 |
Required:
- Calculate the predetermined fixed overhead application rate per machine hour that would be used in July.
- Calculate the number of machine hours that would be allowed for actual July production.
- Calculate the fixed overhead applied to work in process during July.
- Calculate the over- or underapplied fixed overhead for July.
- Calculate the fixed overhead budget and volume variances for July.
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Question 3
Owen plc manufactures one product, and the entire product is sold as soon as it is
produced. The company operates a standard costing system and analysis of
variances is made every month. The standard cost card for a product is as follows.
Materials (4 Kg at £4 per Kg)
Labour (4 Hours at £5 per hr)
Variable overheads (5 hrs at £2 per hr)
Fixed overheads (6 hrs at £3 per hr)
Budgeted selling price is £80 per unit
Budgeted production
Budgeted sales
There is no opening inventory
The actual results are as follows:
Sales: 8,400 units for £613,200
Production: 9,900 units
Actual costs:
Materials (35,464 kg): £163,455
Labour: £ 234,515
Variable overheads: £97,348
Fixed overheads: £ 144,074
£ per Unit
16
20
10
18
£64
8.900 units
8,200 units
Required:
a) Prepare a flexed budget and calculate the total variances
b) Using the data, analyse each of the cost variances: Materials; Labour;
Variable Overheads and; Fixed Overheads
c) Using data, calculate the Sales price variance and the Sales…
Question 7
Howard Bannister Company budgets the following per-unit costs for the upcoming year:
Direct Material
Direct Labor
Variable Selling Expenses
Sales commission
$32.54
$21.24
$15.70
$20.10
Howard budgets producing 1,017 units and having 27,370 of total variable overhead, 49,540
of total fixed overhead, and 30,387 of total fixed S&A costs for the year. Howard allocates
overhead based on units produced.
What is the per-unit cost of inventory under variable costing (i.e., assuming budgets are
correct, how much will be the total amount debited to WIP if Howard produces one additional
unit)? Round your answer to two decimal places (e.g., 192.37).
QUESTION 18
The organization budgeted $400,000 for 40,000 hours of direct labor to complete 16,000 units of finished product. The firm used 42,000 direct labor hours and completed 17,000 units of finished product. What is the direct labor rate variance?
Cannot be determined from the information provided
20,000 unfavorable
25,000 unfavorable
25,000 favorable
Chapter 15 Solutions
Accounting: What the Numbers Mean
Ch. 15 - Prob. 15.1MECh. 15 - Prob. 15.2MECh. 15 - Prob. 15.3MECh. 15 - Prob. 15.4MECh. 15 - Mini-Exercise 15.5 LO 4, 5, 6 Variable overhead...Ch. 15 - Mini-Exercise 15.6
LO 4. 5, 6
Fixed overhead...Ch. 15 - Prob. 15.7ECh. 15 - Prob. 15.8ECh. 15 - Prob. 15.9ECh. 15 - Prob. 15.10E
Ch. 15 - Prob. 15.11ECh. 15 - Prob. 15.12ECh. 15 - Exercise 15.13 LO 4. 5 Direct material...Ch. 15 - Exercise 15.14 LO 4, 5 Direct material...Ch. 15 - Prob. 15.15ECh. 15 - Prob. 15.16ECh. 15 - Exercise 15.17 LO 9 Investment center analysis;...Ch. 15 - Prob. 15.18ECh. 15 - Problem 15.19 LO 4. 5 Calculate variable cost...Ch. 15 - Problem 15.20 LO 4. 5 Calculate variable cost...Ch. 15 - Problem 15.21 LO 4, 5 Direct labor...Ch. 15 - Problem 15.22 LO 4, 5 Direct labor...Ch. 15 - Problem 15.23 LO 5, 6 Fixed overhead...Ch. 15 - Case 15.25 LO 3 Performance reporting The chair of...Ch. 15 - Case 15.26 LO 3 Flexible budgeting One of the...Ch. 15 - Case 15.27 LO 4 Frequency of performance reporting...Ch. 15 - Case 15.28 LO 5 Rank the importance of eight...Ch. 15 - Case 15.29 LO 4. 5 Direct material variances-the...Ch. 15 - Case 15.30 LO 5 Evaluate the effects of erroneous...Ch. 15 - Prob. 15.31CCh. 15 - Case 15.32 The planning and control environment:...
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