GB Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month: Budgeted level of activity Actual level of activity. Cost formula for variable manufacturing overhead cost, Budgeted fixed manufacturing overhead cost Actual total variable manufacturing overhead Actual total fixed manufacturing overhead 8,500 MHs 8,600 MHs P5.70 per MH P50,000 "P51,600 P54,000 P570 favorable P4,000 favorable P4,000 unfavorable P570 unfavorable

Q: FAITH, the consultant of JOY had summarized the following standard cost data extracted from the…

A: Budgeted hours = normal capacity x budgeted hours  per unit   = 400 units x 5 hours x 12 months   =…

Q: The following information is available from the Terry Company:   Actual total factory overhead…

A: Formula: Applied Fixed overhead = Standard rate x Standard hours.

Q: Dirickson Incorporated has provided the following data concerning one of the products in its…

A: The Labor Efficiency Variance helps the business entity to measure the ability to utilize labor…

Q: Use ABC to compute overhead cost assigned to an order. KCC Production Corporation uses an…

A: The question is related to Activity Based Costing. The cost driver rate is calculated by using the…

Q: The following information for the past year is available from Thinnews Co., a company that uses…

A: Compute the variable overhead for inputs.

Q: Viger Corporation has a standard cost system in which it applies manufacturing overhead to products…

A: Variable Overhead Rate Variance: It is a variance incurred when there is a difference between actual…

Q: Privack Corporation has a standard cost system in which it applies overhead to products based on the…

A: The question is based on the concept of Cost Accounting.

Q: MARISSA Co., the consultant of MARISOL Co. had summarized the following standard cost data extracted…

A: Budgeted hours = normal capacity x budgeted hours  per unit   = 400 units x 5 hours x 12 months   =…

Q: Calculate the total variable overhead cost and total fixed overhead cost variance, indicating the…

A: Variable overhead cost variance = Standard cost - Actual cost Variable overhead Spending variance =…

Q: Teall Corporation has a standard cost system in which it applies manufacturing overhead to products…

A: Solution: Particulars Budgeted($) Actual($) Budget vs Actual variance Manufactured fixed…

Q: Blue Sky Incorporated listed the following data for the current year: Budgeted factory overhead…

A: Predetermined overhead rates are used to allocate the overhead expenses. It can be calculated on the…

Q: Judd Company uses standard costs for its manufacturing division. Standards specify 0.1 direct labor…

A:

Q: Viger Corporation has a standard cost system in which it applies manufacturing overhead to products…

A: 1. Variable Overhead Rate Variance - This Variance shows the Variable Overhead Spending Variance…

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

A:

Q: eall Corporation has a standard cost system in which it applies manufacturing overhead to products…

A: Particulars Amount ($) Budgeted Fixed Manufacturing Overhead (FMO) Cost (A) 70000 Budgeted Level…

Q: FAITH, the consultant of JOY had summarized the following standard cost data extracted from the…

A: Budgeted hours = normal capacity x budgeted hours  per unit   = 400 units x 5 hours x 12 months   =…

Q: Viger Corporation has a standard cost system in which it applies manufacturing overhead to products…

A: Solution:- Calculation of Variable overhead rate variance as follows under:-

Q: All−Star​, Inc. uses a standard cost system and provides the following information. Static budget…

A: The variance is the difference between standard and actual output.

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: Saktanmokobaybeh Company uses standard costing for direct materials and direct labor. The following…

A: The Overhead Budget is defined even as expenditure ready to forecast or show all of the contingent…

Q: ard machine-hours (MHs). The company has provided the following data for the most recent month:

A: The total cost of production of a good comprises of the total fixed cost of production and the total…

Q: Jefferson Inc. has the following information for the month of September. The company applies OH…

A: In this question, we will calculate the total manufacturing overhead is under applied or over…

Q: Schneider inc. had the following information relating to year 1:  Budgeted manufacturing overhead…

A: Overheads are considered as fixed and common expenses that should be allocated to the products on…

Q: Use the following information to answer Questions 9 through 13. Urbana Company calculates its…

A: Given the following information: Standard cost Normal capacity: 288,000 units The standard cost…

Q: fixed portion of the predetermined overhead rate

A: Fixed portion of predetermined overhead rate for the year = Total budgeted fixed overhead cost for…

Q: data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 40,000 units…

A: working notes: Variable factory overhead =Standard variable over -h - Actual variable over -h…

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

A: The overhead is applied to the production on the basis of pre-determined overhead rate. The…

Q: Wadding Corporation applies manufacturing overhead to products on the basis of standard…

A: Total budgeted variable overhead costs = supplies + indirect labor = $12880+49000 = $61,880 Stnadrad…

Q: Kecilyn Manufacturing uses the direct labor cost method for applying factory overhead to production.…

A: Overhead rate = Budgeted factory overhead cost / Budgeted direct labor costs =800000/1000000 = P0.80

Q: Tat Manufacturing Corporation uses a standard cost system with machine-hours as the activity base…

A: Computation of the variable overhead efficiency variance is as follows: Formula: Variable overhead…

Q: Russell Wilson Corporation, which makes deep space equlpment and gears, has provided the following…

A: Variable overhead rate variance = (standard rate - actual rate)*actual hours Variable overhead…

Q: Flandro Company uses a standard cost system and sets predetermined overhead rates on the basis of…

A:

Q: ntegrity Company employs a standard absorption system for product costing.  The standard cost of its…

A: Solution: Work in process account is debited for direct materials cost used during the period at…

Q: EMARISSA Co., the consultant of MARISOL Co. Had summxized the following standard cost data extracted…

A: Budgeted hours = normal capacity x budgeted hours  per unit   = 400 units x 5 hours x 12 months   =…

Q: Huxtable charges manufacturing overhead to products by using a predetermined application rate.…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Bobby Pte Ltd charges manufacturing overhead to products by using a pre-determined overhead rate,…

A: Overhead applied to production = Budgeted manufacturing overhead x (Actual labor hours / Budgeted…

Q: Adom Company uses a standard cost system for its production process and applies overhead based on…

A: given that, Budgeted variable overhead = GH¢21875 Budgeted fixed overhead = GH¢38750   actually…

Q: Jefferson Inc. has the following information for the month of September. The company applies OH cos…

A: Solution...     Total actual manufacturing overhead costs  Variable overhead + fixed overhead  =…

Q: A manufacturer of industrial equipment has a standard costing system based on standard direct…

A: Overheads are those expenses which are not traceable over cost object directly. These expenses are…

Q: Primara Corporation has a standard cost system in which it applies overhead to products based on the…

A:

Q: A manufacturing company has a standard costing system based on standard direct labor-hours (DLHs) as…

A: Fixed Manufacturing Overhead Budget Variance:- it is a difference between the actual and budgeted…

Q: ABC Company listed the following data for the current year:             Budgeted factory overhead…

A: As per the given information: Computation of Predetermined overhead rate based on direct labor…

Q: Tiffany charges manufacturing overhead to products by using a predetermined application rate,…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Primara Corporation has a standard cost system In which It apples overhead to products based on the…

A: Introduction Pre-determined Overhead Rate: The predetermined overhead rate is calculated in order to…

Q: Use ABC to compute overhead cost assigned to an order. KCC Production Corporation uses an…

A: The question is related to the Activity Based Costing. Cost driver rate is calculated by dividing…

Q: MARISSA Co., the consultant of MARISOL Co. had summarized the following standard cost data extracted…

A: Budgeted hours = normal capacity x budgeted hours  per unit = 400 units x 5 hours = 2000 hours…

Q: Use the following information to answer Questions 9 through 13. Urbana Company calculates its…

A: Given the following information: Standard cost Normal capacity: 288,000 units The standard cost…

Q: ABC Company listed the following data for the current year:             Budgeted factory overhead…

A: Pre determined overhead rate based on direct labour Budgeted factory overhead / budgeted direct…

Q: Compute the fixed portion of the predetermined overhead rate for the year. Compute the fixed…

A: Given that: Total budgeted fixed overhead cost for the year $300,000 Budgeted standard direct…

Q: Gottshall Inc. makes a range of products. The company's predetermined overhead rate is $19 per…

A: Cost accounting is regarded as the process of collecting, analyzing, summarizing and evaluating…

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.