3 Record the journal entries to accompany the following transactions for variable-MOH: (1) actual variable-MOH cost incurred(consider that half was for utilities not yet paid, and half was for accrued indirect labor), (2) allocation of variable-MOH cost toproduction, and (3) recognition of specific variable-MOH variances (while closing out the Variable-MOH Control account).(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry isrequired, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before creditentries.)No. Account Titles and Explanation(1)(2)(3)DebitCredit11 Bramble Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DMand DL usage and price expectations.Direct materialsDirect laborVariable-MOH11 square yards per unit1.3 DL hours per unit1.3 DL hours per unit@ $6/square yard@ $18/DL hour@ $3.00/DL hourThroughout the year, Bramble used 3,874 DL hours in the process of making 3,050 tents. The company had originally planned toproduce and sell 2,750 tents. Its actual variable-MOH costs totaled $11,816 for the year.

Variance analysis is a financial and quantitative analysis used by businesses to identify the…

Answered: Bramble Corp. supplies its customers…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1PB: Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven...

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Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?
Skysong Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials Direct labor Variable-MOH (a) 11 square yards per unit 1.3 DL hours per unit 1.3 DL hours per unit Throughout the year, Skysong used 4,095 DL hours in the process of making 3,250 tents. The company had originally planned to produce and sell 2,950 tents. Its actual variable-MOH costs totaled $10,852 for the year. Determine Skysong's variable-MOH price and efficiency variances. Also identify whether the company's variable-MOH costs were under-or overapplied, and by how much. Variable-MOH price variance Variable-MOH $ Variable-MOH efficiency variance $ @ $5/square yard @$14/DL hour @$2.60/DL hour $
Marigold Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials 9 square yards per unit @ $5/square yard Direct labor 1.4 DL hours per unit @ $18/DL hour Variable-MOH Fixed-MOH 1.4 DL hours per unit 1.4 DL hours per unit @ $2.80/DL hour @ $4/DL hour Throughout the year, Marigold used 4,795 DL hours in the process of making 3,500 tents. The company had originally planned to produce and sell 3,250 tents with budgeted fixed-MOH cost of $18,200. Its actual fixed-MOH costs amounted to $17,406 for the year. (a) Determine Marigold's fixed-MOH price and volume variances. Also identify whether the company's fixed-MOH costs were under-or overapplied, and by how much. Fixed-MOH price variance $ Fixed-MOH volume variance Fixed-MOH +A $ $
Blue Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials 9 square yards per unit @ $4/square yard Direct labor 1.2 DL hours per unit @$12/DL hour Throughout the year, Blue used 32,430 square yards of fabric in the process of making 3,450 tents. The company had originally planned to produce and sell 3,150 tents. In keeping with its desire to hold some DM Inventory at year-end, it purchased 34,380 square yards of canvas at $4.20 per square yard. Blue's DL cost totaled $52,026 for the 4,002 hours that were actually used. (a) Determine Blue's DM and DL price and efficiency variances; specify the amount and sign for all. Price variance $ Efficiency A variance DM A +A DL
Swifty Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials Direct labor Variable-MOH Fixed-MOH (a) Throughout the year, Swifty used 3,780 DL hours in the process of making 3,500 tents. The company had originally planned to produce and sell 3,200 tents with budgeted fixed-MOH cost of $17,600. Its actual fixed-MOH costs amounted to $17,086 for the year. (b) 10 square yards per unit 1.1 DL hours per unit 1.1 DL hours per unit 1.1 DL hours per unit Your answer is correct. Determine Swifty's fixed-MOH price and volume variances. Also identify whether the company's fixed-MOH costs were under-or overapplied, and by how much. Fixed-MOH price variance Fixed-MOH Fixed-MOH volume variance $ (2) $ (3) @ $6/square yard @ $16/DL hour @ $2.80/DL hour No. Account Titles and Explanation (1) @ $5/DL hour 514 1650 2164 Favorable Record the journal entries to accompany the following…
Current Attempt in Progress Tamarisk Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials 9 square yards per unit @ $6/square yard Direct labor 1 DL hours per unit $17/DL hour Variable-MOH 1 DL hours per unit @ $3.00/DL hour Throughout the year, Tamarisk used 2,880 DL hours in the process of making 3,000 tents. The company had originally planned to produce and sell 2,800 tents. Its actual variable-MOH costs totaled $8,784 for the year. (a) Your answer has been saved. See score details after the due date. Determine Tamarisk's variable-MOH price and efficiency variances. Also identify whether the company's variable-MOH costs were under- or overapplied, and by how much. Variable-MOH price variance 144 Unfavorable Variable-MOH efficiency variance $ 240 Unfavorable Variable-MOH (b) eTextbook and Media List of Accounts $ 3841 Under-applied Attempts: 1 of 1 used Record…
Palladium Inc. produces a variety of household cleaning products. Palladium’s controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per DirectLabor Hour Maintenance $ 86,000 $0.20 Power 0.45 Indirect labor 140,000 2.10 Rent 35,000 Next year, Palladium expects production to require 90,000 direct labor hours. Required: 1. Prepare an overhead budget for the expected level of direct labor hours for the coming year. Palladium Inc. Overhead Budget For the Coming Year Variable costs: Rate per Hour Activity Level 90,000 Hours Maintenance $ $ Power Indirect labor Total variable cost $ Fixed costs: Maintenance $ Indirect labor Rent Total fixed costs $ Total overhead costs $ 2. Prepare an overhead budget that reflects…
Winter Grow Inc. manufactures a range of heat mats. The production information for its standard heat mat is follows: Production Information for Standard Heat Mat Production Info Amount Monthly production capacity 20,000 units Current level of production 15,000 units Normal selling price per unit $25 per unit Variable manufacturing costs $5 per unit Variable selling and administrative expenses $3 per unit Fixed manufacturing costs (allocated) $4 per unit Fixed selling and administrative expenses (allocated) $2 per unit During current month, the company received an offer to sell 4,000 lights to an exporter for $15 per unit. The variable selling and administrative expenses per unit will be reduced by $1 as this is a one-off offer and some of the selling expenses would not be payable on this offer. Acceptance of this order does not affect the pricing policy in the domestic market. How much would be the profit or loss from the acceptance of this offer? Group of…
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Scotch Brand Products produces packaging tape and has determined the following to be its standard cost of producing one case of budget packaging tape: Material (3.50 ounces at $1.30 per ounce) $4.55 Labor (0.30 hour at $12.00 per hour) 3.60 Overhead 2.40 Total $10.55 At the start of 2021, Scotch Brand planned to produce 80,000 cases of tape during the year. Overhead is allocated based on the number of cases of tape produced. Annual fixed overhead is budgeted at $64,000 and the variable overhead costs are budgeted at $1.60 per case. The following information summarizes the results for 2021: Actual production, 81,000 cases Purchased 275,000 ounces of material at a total cost of $343,750 Used 266,250 ounces of material in production Employees worked 22,000 hours, total labor cost $275,000 Actual overhead incurred,…
Palladium Inc. produces a variety of household cleaning products. Palladium's controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per Direct Labor Hour Maintenance $86,000 $0.20 Power $0.45 Indirect Labor $140,000 $2.10 Rent $35,000 Next year, Palladium expects production to require 88,000 direct labor hours. Prepare an overhead budget for the expected level of direct labor hours for the coming year.

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