181.Subject:- Accounting HH hospital maintenance department has prepared the following overhead budget for nextmonth.Activity level.Variable overhead costs:Supplics..Indirect labor.Fixed overhead costs:SupervisionUtilities..Depreciation.Total overhead costA. $84,321.00B. $87,590.00C. $84,860.00D. $83,781.74Tk6,900 machine-hoursIThe departmett's variable overhead costs are driven by machine-hours.What would be the total budgeted overhead cost for next month if the activity level is 6,600machine-hours rather than 6,900 machine-hours?English (United States)$21,39041,40014,6003,5006,700$87,590Focus

Overhead Rate :— It is the rate used to allocate overhead cost to cost object. It is calculated by…

HH hospital maintenance department has prepared the following overhead budget for next month. Activity level... Variable overhead costs: Supplics..... Indirect labor. Fixed overhead costs: Supervision. Utilities. Depreciation.. Total overhead cost. no 6,900 machine-hours English (United States) $21,390 41,400 I The departmett's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 6,600 machine-hours rather than 6,900 machine-hours? A. $84,321.00 B. $87,590.00 C. $84,860.00 D. $83,781.74 14,600 3,500 6.700 $87,590 Focus

HH hospital maintenance department has prepared the following overhead budget for next month. Activity level... Variable overhead costs: Supplics..... Indirect labor. Fixed overhead costs: Supervision. Utilities. Depreciation.. Total overhead cost. no 6,900 machine-hours English (United States) $21,390 41,400 I The departmett's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 6,600 machine-hours rather than 6,900 machine-hours? A. $84,321.00 B. $87,590.00 C. $84,860.00 D. $83,781.74 14,600 3,500 6.700 $87,590 Focus

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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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?
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?
Douglas Davis, controller for Marston, Inc., prepared the following budget for manufacturing costs at two different levels of activity for 20X1: During 20X1, Marston worked a total of 80,000 direct labor hours, used 250,000 machine hours, made 32,000 moves, and performed 120 batch inspections. The following actual costs were incurred: Marston applies overhead using rates based on direct labor hours, machine hours, number of moves, and number of batches. The second level of activity (the right column in the preceding table) is the practical level of activity (the available activity for resources acquired in advance of usage) and is used to compute predetermined overhead pool rates. Required: 1. Prepare a performance report for Marstons manufacturing costs in the current year. 2. Assume that one of the products produced by Marston is budgeted to use 10,000 direct labor hours, 15,000 machine hours, and 500 moves and will be produced in five batches. A total of 10,000 units will be produced during the year. Calculate the budgeted unit manufacturing cost. 3. One of Marstons managers said the following: Budgeting at the activity level makes a lot of sense. It really helps us manage costs better. But the previous budget really needs to provide more detailed information. For example, I know that the moving materials activity involves the use of forklifts and operators, and this information is lost when only the total cost of the activity for various levels of output is reported. We have four forklifts, each capable of providing 10,000 moves per year. We lease these forklifts for five years, at 10,000 per year. Furthermore, for our two shifts, we need up to eight operators if we run all four forklifts. Each operator is paid a salary of 30,000 per year. Also, I know that fuel costs about 0.25 per move. Assuming that these are the only three items, expand the detail of the flexible budget for moving materials to reveal the cost of these three resource items for 20,000 moves and 40,000 moves, respectively. Based on these comments, explain how this additional information can help Marston better manage its costs. (Especially consider how activity-based budgeting may provide useful information for non-value-added activities.)
Factory overhead cost budget Nutty Candy Company budgeted the following costs for anticipated production for August: Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only factory fixed costs.
The following production overhead costs relate to a production department XY, Budget $372,000Actual $425,000Absorbed $391,000 Calculate the over or under absorbed of the overhead? show solution
Zoe Company reports the following for its overhead cost for the year. Activity Budgeted Cost Budgeted Activity Usage Engineering support $127,200 80 design changes Electricity 265,000 5,300 machine hours Setup 426,600 540 setups Compute the activity rate for engineering support using activity-based costing.
The following data is used for questions 5.8 and 5.9 Budgeted machine hours 8,500 Budgeted overhead costs £148,750 Actual machine hours 7,928 Actual overhead costs £146,200 5.8 Based on the data given above, the machine hour overhead absorption rate is: Select one: A. £17.50 B. £17.20 C. £18.44 D. £18.76 5.9 Based on the data given above, the amount of overhead under/over absorbed is: Select one: A. £2,550 under-absorbed B. £2,529 over-absorbed C. £2,550 over-absorbed D. £7,460 under-absorbed
Mia Company uses activity-based costing and reports the following for this year. Activity Budgeted Cost Activity Cost Driver Budgeted Activity Usage Cutting $ 33,600 Machine hours (MH) 4,800 machine hours Assembly 88,000 Direct labor hours (DLH) 8,800 direct labor hours Total $ 121,600 (a) Compute an activity rate for each activity using activity-based costing.(b) Allocate overhead costs to a job that uses 34 machine hours and 29 direct labor hours.
Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information: Units Setups Inspections Assembly (dlh) Small table lamps 3,400 3,900 8,250 44,800 Desk lamps 8,500 7,800 13,750 44,800 Activity Total Activity-Base Usage Budgeted Activity Cost Setups 11,700 $112,320 Inspections 22,000 147,400 Assembly (dlh) 78,400 250,880 The total factory overhead to be allocated to desk lamps is a.$155,183 b.$310,365 c.$372,438 d.$558,657
The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information: Setups Inspections Assembly (dlh) Small Lamps - 5,000 units 4,000 9,300 43,600 Desk Lamps - 8,300 units 8,000 15,500 43,600 Activity Pool Activity Base Budgeted Amount Setups 12,000 $128,400 Inspections 24,800 $153,760 Assembly (dlh) 76,300 $366,240 Calculate the overhead per unit to be charged to small lamps.
The following information is available for the two production departments, machining and assembly, and one service department, the canteen: Machining Assembly Budgeted overheads £15,000 £20,000Number of staff 30 20Canteen £5,500 5After reapportionment of the service cost centre costs, what will be the overhead cost of the machining department cost centre?A. £3,300B. £17,750C. £18,000 D. £18,300
Saktanmokobaybeh Company uses standard costing for direct materials and direct labor. The following monthly cost functions were developed for manufacturing overhead items: Budgeted Overhead Item Cost Function: Indirect materials P 1.00 per DLHIndirect labor 1.25 per DLHUtilities 0.50 per DLHInsurance 50,000Depreciation 400,000 The cost functions were determined using observations from 20,000 to 30,000 direct labor hours. The company expects to operate at 25,000 direct labor hours per month. The theoretical capacity per month of the company is 30,000 units. Each unit requires 2 direct labor hours. The Company applies overhead using direct labor hours. Actual data for this month are as follows: Variable overhead costs P 87,000Fixed overhead costs 423,000Direct labor hours 26,000 Question 1: The entry pertaining to the volume…