Direct manufacturing labor: Flexible Budget = $80,000 Labor Price Variance = $500 U Labor Efficiency Variance = $2,500 F The actual amount spent for direct manufacturing labor was $83,000 $82,000 $80,000 $78,000

Direct manufacturing labor: Flexible Budget = $80,000 Labor Price Variance = $500 U Labor Efficiency Variance = $2,500 F The actual amount spent for direct manufacturing labor was $83,000 $82,000 $80,000 $78,000

Name: Direct manufacturing labor: Flexible Budget = $80,000Labor Price Vari
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Description: Direct manufacturing labor: Flexible Budget = $80,000Labor Price Variance = $500 ULabor Efficiency Variance = $2,500 FThe actual amount spent for direct manufacturing labor was$83,000$82,000$80,000$78,000

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 7P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level...

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Calculating amount of factory overhead applied to work in process The overhead application rate for a company is 2.50 per unit, made up of 1.00 for fixed overhead and 1.50 for variable overhead. Normal capacity is 10,000 units. In one month, there was an unfavorable flexible budget variance of 200. Actual overhead for the month was 27,000. What was the amount of the budgeted overhead for the actual level of production?
ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc. had budgeted $27,000 for fixed overhead. Actual machine hours were 5.000. Standard hours for units made were 4,800. The standard variable overhead rate was $4.10. What is the variable overhead rate variance?
Determining Budgeted Overhead The overhead application rate for a company is 10 per unit, made up of 6 per unit of fixed overhead and 4 per unit of variable overhead. Normal capacity is 10,000 units. In one month there was a favorable flexible budget variance of 2,500. Actual overhead for the month was 110,000 and actual units produced were 13,125. Based on this information, determine the amount of the budgeted overhead for the actual level of production.
Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level and the actual operating results listed below for the 31,000-unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 31,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? Item Direct materials: Direct labor:
The following information relates to product A: Quantity Unit Price Cost Per Unit Material (kg) 5 £15 £75 Labour (hours) 4 £20 £80 Budgeted production 1250 Units Actual production 1000 Units Actual inputs were as follows: Material 6000 Kgs £100,000 Labour 3800 hours £70,000 A). Calculate Material Cost Variance Choose one from the following: A. £10,000 Unfavourable B. £15,000 Favourable C. £25,000 Unfavourable D. £30,000 Favourable
Budgeted variable factory overhead costs: $354,000 Budgeted production in units: 60,000 units Budgeted time: 2 direct labor hours per unit Allocation base: direct labor hours Actual production in units: 58,600 units Actual variable factory overhead costs incurred: $338,500 Actual direct labor hours used: 119,000 hours CALCULATE VARIABLE FACTORY OVERHEAD ALLOCATED: Allocated: $__________ CALCULATE VARIABLE FACTORY OVERHEAD SPENDING (PRICE) VARIANCE :…
The following static budget is provided: Per unit $70 Total $1,050,000 Sales Less variable costs: Manufacturing costs 30 450,000 Selling and administrative 20 300,000 costs $20 $300,000 Contribution margin Less fixed costs: 76,000 Manufacturing costs Selling and administrative 136,000 costs Total fixed costs 212,000 $ 88,000 Net income What will be the overall volume variance if 18,000 units are produced and sold? Multiple Choice $148,000 F $0 F $360,000 U $60,000 F
• The total actual fixed overhead cost was $275,000. • The budgeted amount of fixed overhead cost was $285,000. 46,000 direct labor-hours were actually used to produce 24,060 units. How much was the fixed overhead volume variance? Multiple Choice $3,720 F $13,720 F $3,720 U $13,720 U
2. Variable manufacturing overhead variance analysis The Sourdough Bread Company bakes baquettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. Variable manufacturing overhead is allocated to products on the basis of standard direct manufacturing labor-hours. Following is some budget data for the Sourdough Bread Company: 0.02 hours per baguette Direct manufacturing labor use Variable manufacturing overhead $10.00 per direct manufacturing labor-hour The Sourdough Bread Company provides the following additional data for the year ended December 31, 2021: 1.
The following static budget is provided: Per Unit Total Sales $ 70 $ 1,050,000 Less variable costs: Manufacturing costs 30 450,000 Selling and administrative costs 20 300,000 Contribution margin $ 20 $ 300,000 Less fixed costs: Manufacturing costs 91,000 Selling and administrative costs 104,000 Total fixed costs 195,000 Net income $ 105,000 What will be the overall volume variance if 12,000 units are produced and sold? a. $60,000 U b. $165,000 U c. $90,000 F d. $90,000 U
Budgeted output = 15,000 units Budgeted hours = 12,000 Budgeted fixed overhead = $90,000 Actual fixed overhead = $100,000 Actual output = 18,000 units Actual hours = 16,000 From the above information, you are required to compute :- a) Fixed overhead cost variance b) Budget variance c) Volume variance
Budget Standard per unit Actual production 50 units 30 units Direc material usage 4 Ibs. @ $ 0.5 per Ib 140 Ibs @ $ 1 per Ib. Direct labour usage 2hrs. @ $ 1 per hour 72 hrs @ $ 0.75 per hr. Compute a) Material price variance b)Material quantity variance c)Total material variance d)Labor rate variance e) Labor efficiency variance f) Total pabor variance