Crawford Company's standard fixed overhead cost is $6.00 per direct labor hour based on budgeted fixed costs of $600,000. The standard allows 1 direct labor hours per unit. During 2011, Crawford produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor. What is the activity level on which Crawford based its fixed overhead rate?   110,000 direct labor hours 50,000 direct labor hours 105,000 direct labor hours 100,000 direct labor hours

Q: Franklin Inc. manufactures pipes and applies manufacturing overhead costs to production at a…

A: Allocated manufacturing overhead = Actual Direct labor hours x budgeted​ indirect-cost rate

Q: Norris Company produces telephones. To help control costs, Norris employs a standard costing system…

A: Standard costing is the one that is used to compare the actual and expected results. The difference…

Q: Greedy Co. uses a predetermined factory overhead rate based on direct labor hours. For the month of…

A: Overheads are the indirect costs related to production or manufacturing of goods. These costs can…

Q: Operating at a normal level of 30,000 direct labour-hours, Lasser Company produces 10,000 units of…

A: Calculation of standard hours required for per unit= Total hours/ number of units produced…

Q: Variable costs:           Factory supplies       $100,000   Indirect labor       152,000   Utilities…

A: Variable overheads are the costs that vary on the basis of production whereas fixed costs remain…

Q: XYZ Corporation uses a predetermined overhead application rate of P.30 per direct labor hour. During…

A: The predetermined overhead rate is calculated as estimated overhead cost divided by budgeted…

Q: XYZ Company, which applies overhead on the basis of direct labor hours. Two direct labor hours are…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: Lewis Company calculates its predetermined rates using practical volume, which is 288,000 units. The…

A: Budgeted direct labor hours = budgeted units x budgeted direct labor hours per unit = 288,000 units…

Q: Antuan Company set the following standard costs per unit for its product. $ 12.00 Direct materials…

A: When the actual price is higher than the standard price the price variance is unfavorable .…

Q: Speier Company estimates that 240,000 direct labor hours will be worked during 2017 in the Assembly…

A: Given data: Number of budgeted direct labour hours = 240,000 Indirect Labor = $72,000 Indirect…

Q: DEF Company, which applies overhead on the basis of direct labor hours. Two direct labor hours are…

A: Variable cost is the cost which varies which the level of output. Fixed cost is the cost which…

Q: True or False. If the budgeted factory overhead cost is $460,000, the budgeted direct labor hours is…

A: Factory overhead rate per hour = Budgeted factory overhead cost/Budgeted direct labor hour

Q: Compute the following: 1. Materials Price Variance 2. Materials Quantity Variance 3. Labor Rate…

A: 1. Variances are calculated at actual output level.  2. As per guidelines,  only 3 parts are solved…

Q: uired: Determine the following: (please show the solution) 1. predetermined fixed Overhead rate per…

A:

Q: The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 50,000…

A:

Q: Carla Company’s standard fixed overhead rate is based on budgeted fixed manufacturing overhead of…

A: Fixed Overhead:-These are those cost which does not change for a long period of time even if volume…

Q: Vin Diesel Company uses a standard costing system in which it applies manufacturing overhead to…

A: Formula: Total budgeted fixed factory overhead = Total applied factory overhead - Total Variable…

Q: KrisKross Inc.'s total predetermined overhead rate is $50 per hour based on a monthly capacity of…

A: Formula: Standard hours for September = Number of units produced in the September month x Each…

Q: If the materials price variance was $3,542 unfavorable, what was the standard materials price per…

A: The calculation of material standard price per pound is shown hereunder : Material price variance $…

Q: NEW JERSEY CORP. uses a standard cost system in which manufacturing overhead is applied to units of…

A: Denominator level of activity is calculated by dividing the total budgeted overhead with the…

Q: The following data are from actual results of Dhiumano Foods Corporation: Actual output 14,550 cases…

A: Variable overhead rate variance::SRR/hour*Actual Hours------Actual Overhead…

Q: [The following information applies to the questions displayed below.] Antuan Company set the…

A: The variable cost per unit remains constant and total fixed costs remains constant at every level of…

Q: Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced.…

A: All amounts are in dollar.

Q: ENCHANTRESS CORP. is applying overhead with direct labor hours as its basis. Four direct labor hours…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Avery Company uses a predetermined overhead rate based on direct labor hours. For the month of…

A: The predetermined overhead rate is computed based on budgeted overhead cost for the budgeted level…

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A: Fixed overhead Spending variance = Budgeted Fixed overhead - Actual Fixed Overhead   Fixed overhead…

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A: Direct material quantity variance is calculated by taking the difference between actual quantity at…

Q: Emma Corporation uses an overhead absorption rate of $3·50 per machine hour, based on 32,000…

A: Total overhead expenditure = $108,875 Machine hours = 30,000 hours Absorption rate (per machine…

Q: In October, Pine Company reports 20,600 actual direct labor hours, and it incurs $257,000 of…

A: overhead volume  variance  =  Standard hours  - normal hours) × fixed overhead  rate

Q: London Company manufactures balls and applies manufacturing overhead costs to production at a…

A: Allocated overhead = Actual direct labor hours x predetermined overhead rate = 4500 hours x $20 =…

Q: The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead…

A: Variable factory overhead controllable variance = Actual variable overhead cost - Standard variable…

Q: London Company manufactures balls and applies manufacturing overhead costs to production at a…

A: Manufacturing overhead means all indirect costs related to production like indirect materials,…

Q: Laura Company calculates its predetermined rates using practical volume, which is 288,000 units. The…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Luna Company calculates its predetermined rates using practical volume, which is 288,000 units. The…

A: Overhead represents the indirect expense of the company that has been incurred in the production…

Q: Lewis Company calculates its predetermined rates using practical volume, which is 288,000 units. The…

A: Budgeted Direct labor hours = Budgeted units x budgeted direct labor hours per unit = 288,000 units…

Q: XYZ Company, which applies overhead on the basis of direct labor hours. Two direct labor hours are…

A: Fixed costs are costs that do not change with the change in the level of output. Budgeted…

Q: Antuan Company set the following standard costs per unit for its product. $ 12.00 Direct materials…

A: Detailed overhead variance report :-

Q: Avery Company uses a predetermined overhead rate based on direct labor hours. For the month of…

A: Predetermined overhead rate = Budgeted overhead / Budgeted volume of direct labor hours = P300,000 /…

Q: Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced.…

A: Journal entry refers to recording and classifying business transactions into books of accounts…

Q: Lane Company manufacures a single product and applies overhead cost to that product using standard…

A: Pre-determined overhead rate is defined as the rate that is used in order to apply the manufacturing…

Q: Vin Diesel Company uses a standard costing system in which it applies manufacturing overhead to…

A: Total budgeted fixed factory overhead = Total applied factory overhead - Total Variable factory…

Q: Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current…

A: Actual overhead = $241,400 + $556,200 = $797600 Budgeted Fixed Overhead = Standard variable overhead…

Q: The following data pertains to the month of October for Elm. Co. when production was budgeted to be…

A: Direct material variances:   The difference between the actual material cost per unit and the…

Q: The Gathering Sound, Inc. collected the following data regarding production of one of its products.…

A: Fixed overhead volume variance = Budgeted Fixed Overhead - Applied Fixed Overhead Standard Hours for…

Q: The Ring The Bells, Co. collected the following data regarding production of one of its products.…

A: Variable overhead cost variance  = Actual variable overhead - standard overhead for actual output

Q: Luna Company calculates its predetermined rates using practical volume, which is 288,000 units. The…

A: This numerical has covered the concept of Variance Analysis.

Q: Norris Company produces telephones. To help control costs, Norris employs a standard costing system…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: Orange, Incorporated has identified the following cost drivers for its expected overhead costs for…

A: Activity-based costing is used to distribute the overhead. This method is used to allocate the…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.