Homework Answers
1)
Predetermined overhead rate =Estimated overhead /Estimated activity(direct labor hours)
| Fixed predetermined overhead rate | 9360/9000=$ 1.04 per DLH |
| Variable predetermined overhead rate | 12330/9000 =$ 1.37 per DLH |
| Total predetermined overhead rate | 2.41 per DLH |
2)
Fixed overhead volume variance =Fixed predetermined overhead rate(Budgeted hours-standard hours)
1.04 (9000-9400)
1.04 *-400
= - 416 F (Enter as 416 F)
Fixed overhead spending variance =Actual fixed overhead -Budgeted fixed overhead
= 9430 - 9360
= 70 U
Variable overhead price variance= Actual variable overhead - (Actual hours*Variable predetermined overhead rate)
= 10870- (10600*1.37)
= 10870 - 14522
= - 3652 F (enter as 3652F)
**variable overhead actual =20300-9430=10870
4)
Variable overhead quantity variance = Variable predetermined overhead rate(AH-SH)
= 1.37 (10600-9400)
= 1.37 *1200
= 1644 U
5)Total variance = -416 F +70U +(-3652F) +1644U
= -2354 F (enter as 2354F)
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EWWIELS Helir n Jj , Managerial Accounting, Fifth Canadian Edition Concordia: Managerial Accounting (COMM 305 Practice...
Mercuri Company has gathered the following information: Variable manufacturing overhead costs $13,680 Fixed manufacturing overhead costs...
Mercuri Company has gathered the following information:
Variable manufacturing overhead costs
$13,680
Fixed manufacturing overhead costs
$10,710
Normal production level in labour hours
9,000
Standard labour hours
9,500
During the year, 3,050 units were produced, 10,900 hours were
worked, and the actual manufacturing overhead was $21,800. Actual
fixed overhead totalled $10,800.
Mercuri applies overhead based on direct labour hours.
Calculate the total, fixed, and variable predetermined overhead
rates.(Round answers to 2 decimal places, e.g.
15.25.)
Fixed predetermined ovehead rate
$...
Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg...
Jay Levitt Company budgeted the following cost standards for
the current year:
Direct materials (2 kg of
plastic at $6 per kilogram)
$12.00
Direct labour (2 hours at $12
per hour)
24.00
Variable manufacturing
overhead
11.90
Fixed manufacturing
overhead
6.25
Total standard cost per
unit
$54.15
Actual costs for producing 2,740 units were as follows:
Direct materials used
5,560
kg
Direct materials purchased
(6,780 kg)
$40,002
Direct labour (6,880 hours)
$67,424
Variable manufacturing
costs
$32,600
Fixed manufacturing costs
$17,600
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Waterways Continuing Problem 12 At the end of June the manager of the B.C. manufacturing plant...
Waterways Continuing Problem 12
At the end of June the manager of the B.C. manufacturing plant
was provided with the following variance analysis report:
Budget
Actual
Variance
Favourable (F)/
Unfavourable (U)
Production in units
332,000
347,000
15,000
F
Production costs:
Direct material
$996,000
$1,017,940
$(21,940)
U
Direct labour
1,411,000
1,442,700
(31,700)
U
Variable overhead costs
166,000
172,957
(6,957)
U
Fixed overhead costs
174,300
168,620
5,680
F
Total production costs
$2,747,300
$2,802,217
$(54,917)
U
The manager immediately called the production supervisor,...
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Mercuri Company has gathered the following information:
Variable manufacturing overhead costs
$13,680
Fixed manufacturing overhead costs
$10,710
Normal production level in labour hours
9,000
Standard labour hours
9,500
During the year, 3,050 units were produced, 10,900 hours were
worked, and the actual manufacturing overhead was $21,800. Actual
fixed overhead totalled $10,800.
Mercuri applies overhead based on direct labour hours.
Calculate the total, fixed, and variable predetermined overhead
rates.(Round answers to 2 decimal places, e.g.
15.25.)
Fixed predetermined ovehead rate
$...
Jay Levitt Company budgeted the following cost standards for
the current year:
Direct materials (2 kg of
plastic at $6 per kilogram)
$12.00
Direct labour (2 hours at $12
per hour)
24.00
Variable manufacturing
overhead
11.90
Fixed manufacturing
overhead
6.25
Total standard cost per
unit
$54.15
Actual costs for producing 2,740 units were as follows:
Direct materials used
5,560
kg
Direct materials purchased
(6,780 kg)
$40,002
Direct labour (6,880 hours)
$67,424
Variable manufacturing
costs
$32,600
Fixed manufacturing costs
$17,600
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Waterways Continuing Problem 12
At the end of June the manager of the B.C. manufacturing plant
was provided with the following variance analysis report:
Budget
Actual
Variance
Favourable (F)/
Unfavourable (U)
Production in units
332,000
347,000
15,000
F
Production costs:
Direct material
$996,000
$1,017,940
$(21,940)
U
Direct labour
1,411,000
1,442,700
(31,700)
U
Variable overhead costs
166,000
172,957
(6,957)
U
Fixed overhead costs
174,300
168,620
5,680
F
Total production costs
$2,747,300
$2,802,217
$(54,917)
U
The manager immediately called the production supervisor,...
show calculations and work
BED Return to Blackboard Weygandt, Managerial Accounting, Fifth Canadian Edition PRINTER VERSION « BACK Question 3 Mozena Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,800 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $430 and $270, respectively. Production in Units 3,800 Production Costs Direct materials $7,904 Direct labour 15,124 Utilities 1,798 Property taxes 1,180 Indirect...
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fill in the missing numbers
Consider the following data provided for each of the following independent cases. For each case assume that the business uses a standard cost system and a flexible budget to control variable and fixed manufacturing overhead, and applies manufacturing overhead on the basis of direct labour hours. Fill in the blanks for each case, and indicate whether the variances are favourable (F) or unfavourable (U). Phi Company Pho Company Number of labour hours budgeted $10,600 hrs...
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