Home Insert Page Layout Formulas Data Review View A B D Actual Static The Rotations Corporation (June 2017) Results Budget 150 2 Number of centrifuges assembled and sold 3 Hours of assembly time 4 Variable manufacturing overhead cost per hour of assembly time 5 Variable manufacturing overhead costs 6 Fixed manufacturing overhead costs 220 396 $31.00 $12,693 $15,510 $14,100 Required 1. Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead vari- ances using the columnar approach in Exhibit 8-4 (page 304). 2. Prepare journal entries for Rotations' June 2017 variable and fixed manufacturing overhead costs and variances; write off these variances to Cost of Goods Sold for the quarter ending June 30, 2017. 3. How does the planning and control of variable manufacturing overhead costs differ from the planning and control of fixed manufacturing overhead costs?

Home Insert Page Layout Formulas Data Review View A B D Actual Static The Rotations Corporation (June 2017) Results Budget 150 2 Number of centrifuges assembled and sold 3 Hours of assembly time 4 Variable manufacturing overhead cost per hour of assembly time 5 Variable manufacturing overhead costs 6 Fixed manufacturing overhead costs 220 396 $31.00 $12,693 $15,510 $14,100 Required 1. Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead vari- ances using the columnar approach in Exhibit 8-4 (page 304). 2. Prepare journal entries for Rotations' June 2017 variable and fixed manufacturing overhead costs and variances; write off these variances to Cost of Goods Sold for the quarter ending June 30, 2017. 3. How does the planning and control of variable manufacturing overhead costs differ from the planning and control of fixed manufacturing overhead costs?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 10EB: This cost data from Hickory Furniture is for the year 2017. Using the high-low method, express the...

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. Best Around, Inc., is a manufacturer of vacuums and uses standard costing. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of budgeted machine-hours. In 2017, budgeted fixed manufacturing overhead cost was $17,000,000. Budgeted variable manufacturing overhead was $10 per machine-hour. The denominator level was 1,000,000 machine-hours. Q. Prepare a graph for fixed manufacturing overhead. The graph should display how Best Around, Inc.’s fixed manufacturing overhead costs will be depicted for the purposes of (a) planning and control and (b) inventory costing.
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Renka’s Heaters selected data for October 2017 are presented here (in millions):Direct materials inventory 10/1/2017 $ 105 Direct materials purchased $365 Direct materials used $385 Total manufacturing overhead costs $450 Variable manufacturing overhead costs$ 265 Total manufacturing costs incurred during October 2017 $1,610 Work-in-process inventory 10/1/2017 $230 Cost of goods manufactured $1,660 Finished-goods inventory 10/1/2017 $130 Cost of goods sold $1,770Calculate the following costs: 1. Direct materials inventory 10/31/2017 2. Fixed manufacturing overhead costs for October 2017 3. Direct manufacturing labor costs for October 2017 4. Work-in-process inventory 10/31/2017 5. Cost of finished goods available for sale in October 2017 6. Finished goods inventory 10/31/2017
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ags R Us manufactures back packs for schools. The business uses a perpetual inventory systemand has a highly labour intensive production process, so it applies manufacturing overhead basedon direct labour hours. Any overhead variance is closed out to Cost of Goods Sold.The business’s pre-determined overhead application rate for 2018 was computed from thefollowing data:Total estimated factory overheadsTotal estimated direct labour hours$4,200,00035,000During the first month of 2018, the business recorded the following transactions.i) Purchased materials on account, $500,000ii) Incurred manufacturing wages of $1,065,000iii) Issued direct materials and used direct labour in manufacturingDirect Materials Direct Labour Direct Labour HoursJob 401 $100,000 $220,000 1,200Job 402 81,000 190,000 1,000Job 403 90,000 205,000 1,100Job 404 150,000 290,250 1,800iv) Issued indirect materials to production, $80,000v) Charged indirect manufacturing wages to production, $159,750vi) Depreciation expense…
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