wwwww Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead Variable overhead Fixed overhead Total overhead 35,000 350,000 $ 1,400,000 600,000 $ 2,000,000 37,500 375,000 $ 1,500,000 600,000 $ 2,100,000 40,000 400,000 $ 1,600,000 600,000 $ 2,200,000 During the current month, the company operated at 70% of capacity, direct labor of 340,000 hours were used, and the following actual overhead costs were incurred. Actual variable overhead Actual fixed overhead Actual total overhead $ 1,375,000 628,600 $ 2,003,600 1. Compute the total variable overhead variance and identify it as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. 2. Compute the total fixed overhead variance and identify it as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. ----At 70% of Operating Capacity------- Standard Direct Labor Hours Overhead Rate Standard Direct Labor Hours Standard Overhead Applied Favorable or Unfavorable Actual Overhead Overhead Variance Variable overhead variance Fixed overhead variance $ 4.00 1.60 628,600

wwwww Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead Variable overhead Fixed overhead Total overhead 35,000 350,000 $ 1,400,000 600,000 $ 2,000,000 37,500 375,000 $ 1,500,000 600,000 $ 2,100,000 40,000 400,000 $ 1,600,000 600,000 $ 2,200,000 During the current month, the company operated at 70% of capacity, direct labor of 340,000 hours were used, and the following actual overhead costs were incurred. Actual variable overhead Actual fixed overhead Actual total overhead $ 1,375,000 628,600 $ 2,003,600 1. Compute the total variable overhead variance and identify it as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. 2. Compute the total fixed overhead variance and identify it as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. ----At 70% of Operating Capacity------- Standard Direct Labor Hours Overhead Rate Standard Direct Labor Hours Standard Overhead Applied Favorable or Unfavorable Actual Overhead Overhead Variance Variable overhead variance Fixed overhead variance $ 4.00 1.60 628,600

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 20E: Calculating amount of factory overhead applied to work in process The overhead application rate for...

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es D ♪ Mc Graw Classes N Netflix Activity Assembly Product design Electricity Setup Total Craftmore Machining reports the following budgeted overhead cost and related data for this year. Budgeted Cost $ 477,750 73,500 24,500 61,250 $ 637,000 Activity Cost Driver Direct labor hours (DLH) Engineering hours (EH) Machine hours (MH) Setups Required 1 25 Required 2 Dashboard Activity Cost Driver Direct labor hours (DLH) Engineering hours (EH) Machine hours (MH) Setups Required: 1. Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours. 2. Job 31 used 320 direct labor hours and Job 42 used 560 direct labor hours. Allocate overhead cost to each job using the single plantwide overhead rate from part 1. 3. Compute an activity rate for each activity using activity-based costing. 4. Allocate overhead costs to Job 31 and Job 42 using activity-based costing. 80 Job 31 Activity Usage Required 3 320 35 60 5 Complete this question by…
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Overheads cost analysisRProduction 4 400 000Materials handling 1 000 000Set-up 1 050 000Quality control 1 900 000Materials procurement 400 000Cost driver analysisCost drivers Product A Product B TotalDirect labour hours 320 000 180 000 500 000Number of set-ups 420 280 700Materials movements 700 300 1 000Number of orders 1 300 700 2 000Number of inspections 1 140 760 1 900 Annual outputProduct A 200 000 unitsProduct B 100 000 units Use the information provided below to calculate the overhead cost per product using the followingcosting systems: Traditional Absorption Costing, using direct labour hours as the basis for allocation.…
Suzanne Corporation manufactures custom cabinets for kitchens. It uses a normal-costing system with two direct cost categories-direct materials and direct manufacturing labor-and one indirect-cost pool, manufacturing overhead costs. View the manufacturing overhead costs information for 2020. Begin by calculating the budgeted indirect cost rate. Identify the formula and then calculate the rate. (Assume the cost allocation base is direct labor hours.) Budgeted indirect cost rate 28 Budgeted manufacturing overhead costs $ 784,000 $ Actual indirect costs incurred 1,134,000 The manufacturing overhead allocated during the year is $ Identify the formula and calculate the underallocated or overallocated manufacturing overhead. (Use parentheses or a minus sign to report overhead overallocated.) Underallocated (overallocated) indirect costs 378,000 Account Work-in-process control Finished goods control Cost of goods sold Total Account Balance (Before Proration) $ $ $ $ Budgeted labor hours…
EstimatedFixedCost EstimatedVariableCost(perunitsold) Production costs: Direct materials $19 Direct labor 13 Factory overhead $261,300 10 Selling expenses: Sales salaries and commissions 54,300 4 Advertising 18,400 Travel 4,100 Miscellaneous selling expense 4,500 4 Administrative expenses: Office and officers' salaries 53,100 Supplies 6,500 2 Miscellaneous administrative expense 6,040 2 Total $408,240 $54 It is expected that 8,640 units will be sold at a price of $135 a unit. Maximum sales within the relevant range are 11,000 units. Required: Question Content Area 1. Prepare an estimated income statement for 20Y7. Belmain Co.Estimated Income StatementFor the Year Ended December 31, 20Y7 $- Select - Cost of goods sold: $- Select - - Select - - Select -…
Manufacturing Overhead Distribution Worksheet The following are selected operating data for the production and service departments of Bluestone Compa Departments Service Production Overhead costs (identified by department) $50.000 $1.032.000 $65,168 $2478.000 4.000 Indirect material S96.800 S164A00 Indirect labor $194400 $2.000 24.000 Square feet of building floor space used Assessed value of equipment used 9.600 14.400 $252.000 5420.000 264000 $.00 $126 000 176.000 Cubic yards of factory space used 400.600 102.400 Machine hours $40.000 s00.000 Direct labor O is allocated on the basis of square feet of floor space. Personal property taxes of $72,000 are allocated on the sbution worksheet for Bluestone Company similar to the one prepared for Exhibit 3-1s when appropriate Under the Allocation Basis column, select the basis used to calculate each alocation
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Step-down method (IS first) Dialog content starts Support Departments Operating Departments Step-down Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations $390,000 $3,600,000 $8,700,000 $12,470,000 $25,160,000 Allocation of IS costs 360,000 (3,600,000) 1,296,000 1,944,000 $750,000 $0 Allocation of AS costs (750,000) 450,000 300,000 Total budgeted overhead of operating departments $0 $10,446,000 $14,714,000 $25,160,000 Reference Dialog content starts GOVT CORP Direct method $1,674,000 $2,316,000 Step-down (AS first) 1,658,400 2,331,600 Step-down (IS first) 1,746,000 2,244,000
Step-down method (IS first) Dialog content starts Support Departments Operating Departments Step-down Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations $390,000 $3,600,000 $8,700,000 $12,470,000 $25,160,000 Allocation of IS costs 360,000 (3,600,000) 1,296,000 1,944,000 $750,000 $0 Allocation of AS costs (750,000) 450,000 300,000 Total budgeted overhead of operating departments $0 $10,446,000 $14,714,000 $25,160,000 Reference Dialog content starts GOVT CORP Direct method $1,674,000 $2,316,000 Step-down (AS first) 1,658,400 2,331,600 Step-down (IS first) 1,746,000 2,244,000 Requirement 1b. Allocate the two support departments' costs to the two operating departments using the reciprocal method. Use repeated iterations. (Round your final answers to the nearest whole dollar.…
Question Content Area Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information: Line Item Description Units Setups Inspections Assembly (dlh) Hooks 4,000 1 3 1 Nooks 8,000 2 2 1 Activity Total Activity - Base Usage Budgeted Activity Cost Setups 20,000 $60,000 Inspections 24,000 120, 000 Assembly (dlh) 28,000 420,000 The total factory overhead to be allocated to Nooks is a. $600, 000 b. $488,000 c. $400, 000 d. $300,000
ator=&inpr... 18 R Print Item Calculating Departmental Overhead Rates and Applying Overhead to Production At the beginning of the year, Glaser Company estimated the following: Assembly Testing Department Department Total Overhead $364,000 $371,280 $735,280 Direct labor hours 157,500 118,125 275,625 Machine hours 50,500 54,540 105,040 Glaser uses departmental overhead rates. In the assembly department, overhead is applied on the basis of direct labor hours. In the testing department, overhead is applied on the basis of machine hours. Actual data for the month of March are as follows: Assembly Testing Department Department Total Overhead $43,680 $44,554 $88,234 Direct labor hours 18,900 14,175 33,075 Machine hours 6,060 6,545 12,605 Required: 1. Calculate the predetermined overhead rates for the assembly and testing departments. Round your answers to the nearest cent. Assembly department overhead rate per direct labor hour Testing department overhead rate per machine hour Check My Work 4…