The cheque-clearing office of Pay Loans Company is responsible for processing all cheques that come to the company for payment. Managers at the company believe that variable overhead costs are essentially proportional to the number of labour-hours worked in the office, so labour-hours are used as the activity base when preparing variable overhead budgets and performance reports. Data for October, the most recent month, appear below:
| Budgeted labour-hours | 1,480 | ||
| Actual labour-hours | 1,360 | ||
| Standard labour-hours allowed for the actual number of cheques processed |
1,500 | ||
| Cost Formula (per labour-hour) |
Actual Costs Incurred in October |
|||||
| Variable overhead costs: | ||||||
| Office supplies | $ | 0.70 | $ | 901 | ||
| Staff coffee lounge | 0.50 | 660 | ||||
| Indirect labour | 3.70 | 3,999 | ||||
| Total variable overhead cost | $ | 4.90 | $ | 5,560 | ||
Fixed overhead at Pay Loans Company consists entirely of supervisory salaries and is applied at a rate of $5 per direct labour-hour. Actual fixed overhead costs totalled $5,240 in October, while the flexible budget was $5,000 for the month.
Required:
Prepare an overhead performance report for October for the cheque-clearing office that includes both spending and efficiency variances for variable overhead and the budget variance for fixed overhead. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)
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The cheque-clearing office of Pay Loans Company is responsible
for processing all cheques that come to...
The cheque-clearing office of Pay Loans Company is responsible for processing all cheques that come to...
The cheque-clearing office of Pay Loans Company is responsible for processing all cheques that come to the company for payment. Managers at the company believe that variable overhead costs are essentially proportional to the number of labour-hours worked in the office, so labour-hours are used as the activity base when preparing variable overhead budgets and performance reports. Data for October, the most recent month, appear below: Budgeted labour-hours 1,390 Actual labour-hours 1,315 Standard labour-hours allowed for the actual number of...
The overhead budget for Hugh Demand Ltd for the year to 30 June 2016 wasestimated on...
The overhead budget for Hugh Demand Ltd for the year to 30 June 2016 wasestimated on 20,000 direct labour hours. Using this base, the overhead recovery rate per direct labour hour was determined as: Fixed costs ($216,000) $10.80 Variable costs $ 8.10 $18.90 Actual results achieved for the year were: Fixed costs $220,500 Variable costs $170,940 Direct labour hours 21,000 hours Required: Calculate the factory overhead spending (budget) variance and capacity(volume) variance. Specify whether the Spending Variance and the...
fill in the missing numbers Consider the following data provided for each of the following independent...
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...
I already inputted all the word values, i just need the numbers Exercise 21-21 Overhead controllable...
I already inputted all the word values, i just need the
numbers
Exercise 21-21 Overhead controllable and volume variances; overhead variance report LO P3 James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget: Operating Levels Overhead Budget Production in units 808 10,000 Standard direct 1abor hours 27,000 Budgeted overhead Variable overhead costs...
Flexible Budget Application The polishing department of Taylor Manufacturing Company operated during April 2016 with the...
Flexible Budget Application The polishing department of Taylor Manufacturing Company operated during April 2016 with the following manufacturing overhead cost budget based on 5,000 hours of monthly productive capacity: Taylor Manufacturing Company Polishing Department Overhead Budget (5,000 Hours) For the Month of April 2016 Variable costs: Factory supplies $100,000 Indirect labor 152,000 Utilities 68,000 Patent royalties on secret process 296,000 Total variable overhead Fixed costs: Supervisory salaries 160,000 Depreciation on factory equipment 144,000 Factory taxes 48,000 Factory insurance 32,000 Utilities...
Blaze Corp. applies overhead on the basis of direct labor hours. For the month of March, the company planned production...
Blaze Corp. applies overhead on the basis of direct labor hours.
For the month of March, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following budget:
Operating Levels
Overhead Budget
80%
Production in units
10,000
Standard direct labor hours
30,000
Budgeted overhead
Variable overhead costs
Indirect materials
$
30,000
Indirect labor
40,000
Power
8,000
Maintenance
3,000
Total variable costs
81,000
Fixed overhead costs
Rent of factory building
31,000
Depreciation—Machinery
45,000...
A manufacturer had the following information: Budget Actual Units produced 10,000 11,050 Materials used...
A manufacturer had the following information: Budget Actual Units produced 10,000 11,050 Materials used in production 400 kg ? Material Costs $ 8,000 ? Direct Labour (Hours) 35,000 hrs 41,010 hrs Direct Labour Costs $ 385,000 $450,951 Variable Overhead Costs $ 350,000 $411,441 Fixed Overhead Costs $ 160,000 $136,358 Other Information Overhead is Allocated on Direct Labour Hours During the year, 602 kg of materials were purchased for $12,000 Beginning Direct Material Inventory:...
Blaze Corp. applies overhead on the basis of direct labor hours. For the month of March,...
Blaze Corp. applies overhead on the basis of direct labor hours.
For the month of March, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following budget:
Operating Levels
Overhead Budget
80%
Production in units
10,000
Standard direct labor hours
20,000
Budgeted overhead
Variable overhead costs
Indirect materials
$
21,000
Indirect labor
25,000
Power
6,800
Maintenance
5,200
Total variable costs
58,000
Fixed overhead costs
Rent of factory building
24,000
Depreciation—Machinery
28,000...
Flexible Budget Application The polishing department of Taylor Manufacturing Company operated during April 2019 with the...
Flexible Budget Application The polishing department of Taylor Manufacturing Company operated during April 2019 with the following manufacturing overhead cost budget based on 4,000 hours of monthly productive capacity: Taylor Manufacturing Company Polishing Department Overhead Budget (4,000 Hours) For the Month of April 2019 Variable costs: Factory supplies $100,000 Indirect labor 152,000 Utilities 68,000 Patent royalties on secret process 296,000 Total variable overhead Fixed costs: Supervisory salaries 160,000 Depreciation on factory equipment 144,000 Factory taxes 48,000 Factory insurance 32,000 Utilities...
James Corp. applies overhead on the basis of direct labor hours.
James Corp. applies overhead on the basis of direct labor
hours.
James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget Overhead Budget Production in units Standard direct labor hours Budgeted overhead 88% 10,000 25,800 Varlable overhead costs Indirect materials Indirect labor Power Maintenance Total variable costs $18,800 25,000 5,000 50.000 Fixed overhead...
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...
I already inputted all the word values, i just need the
numbers
Exercise 21-21 Overhead controllable and volume variances; overhead variance report LO P3 James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget: Operating Levels Overhead Budget Production in units 808 10,000 Standard direct 1abor hours 27,000 Budgeted overhead Variable overhead costs...
Flexible Budget Application The polishing department of Taylor Manufacturing Company operated during April 2016 with the following manufacturing overhead cost budget based on 5,000 hours of monthly productive capacity: Taylor Manufacturing Company Polishing Department Overhead Budget (5,000 Hours) For the Month of April 2016 Variable costs: Factory supplies $100,000 Indirect labor 152,000 Utilities 68,000 Patent royalties on secret process 296,000 Total variable overhead Fixed costs: Supervisory salaries 160,000 Depreciation on factory equipment 144,000 Factory taxes 48,000 Factory insurance 32,000 Utilities...
Blaze Corp. applies overhead on the basis of direct labor hours.
For the month of March, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following budget:
Operating Levels
Overhead Budget
80%
Production in units
10,000
Standard direct labor hours
30,000
Budgeted overhead
Variable overhead costs
Indirect materials
$
30,000
Indirect labor
40,000
Power
8,000
Maintenance
3,000
Total variable costs
81,000
Fixed overhead costs
Rent of factory building
31,000
Depreciation—Machinery
45,000...
Blaze Corp. applies overhead on the basis of direct labor hours.
For the month of March, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following budget:
Operating Levels
Overhead Budget
80%
Production in units
10,000
Standard direct labor hours
20,000
Budgeted overhead
Variable overhead costs
Indirect materials
$
21,000
Indirect labor
25,000
Power
6,800
Maintenance
5,200
Total variable costs
58,000
Fixed overhead costs
Rent of factory building
24,000
Depreciation—Machinery
28,000...
Flexible Budget Application The polishing department of Taylor Manufacturing Company operated during April 2019 with the following manufacturing overhead cost budget based on 4,000 hours of monthly productive capacity: Taylor Manufacturing Company Polishing Department Overhead Budget (4,000 Hours) For the Month of April 2019 Variable costs: Factory supplies $100,000 Indirect labor 152,000 Utilities 68,000 Patent royalties on secret process 296,000 Total variable overhead Fixed costs: Supervisory salaries 160,000 Depreciation on factory equipment 144,000 Factory taxes 48,000 Factory insurance 32,000 Utilities...
James Corp. applies overhead on the basis of direct labor
hours.
James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget Overhead Budget Production in units Standard direct labor hours Budgeted overhead 88% 10,000 25,800 Varlable overhead costs Indirect materials Indirect labor Power Maintenance Total variable costs $18,800 25,000 5,000 50.000 Fixed overhead...
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