owesubject-Accounting Kaumaset Factory produces two products: table lamps and desk lamps. It has two separate departments: Fabrication and Assembly. The factory overhead budget for the Fabrication Ceportinet $439,404uning 255,700 direct labor hours. The factory overhead budget for the Assembly Department is $501,722, uveg 59,800 drect labor hoursIf a desk lamo requires 5 hour of fabrication and a bours of assembly, the total aunt of factory overhead thar Kumajet Factory will alocate to desk lamps using the multiple production department factoryoverhead rate method with an allocation base of direct labor hours if 10,000 units are produced iO SIRT 350Ob 3157415O $81,900Od 1757-200O

Name: owesubject-Accounting Kaumaset Factory produces two products: table la
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Description: owesubject-Accounting Kaumaset Factory produces two products: table lamps and desk lamps. It has two separate departments: Fabrication and Assembly. The factory overhead budget for the Fabrication Ceportinet $439,404uning 255,700 direct labor hours.

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Kumaget Factory produces two products: table lamps and desk lamps It has two separate departinents: Fabrication and Assembly The factory overhead budget for the fabricatum Deporte $47540 using 255,700 direct labor hours. The factory overhead budget for the Assembly Department is $501.722, 5 800 dret bor hours a dek lamp requires 5 hour of fabrication and 8 hours ably the tatal art of factory overhead rate method with an location base direct labor hours if 10,000 unts are product is O SR350 Ob 3157431 O $1,900 O & ST57200 thar Kumajet Factory wil

Kumaget Factory produces two products: table lamps and desk lamps It has two separate departinents: Fabrication and Assembly The factory overhead budget for the fabricatum Deporte $47540 using 255,700 direct labor hours. The factory overhead budget for the Assembly Department is $501.722, 5 800 dret bor hours a dek lamp requires 5 hour of fabrication and 8 hours ably the tatal art of factory overhead rate method with an location base direct labor hours if 10,000 unts are product is O SR350 Ob 3157431 O $1,900 O & ST57200 thar Kumajet Factory wil

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter23: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 4CMA: JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT...

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Cozy, Inc., manufactures small and large blankets. It estimates $950,000 in overhead during the manufacturing of 360,000 small blankets and 120,000 large blankets. What is the predetermined overhead rate if a small blanket takes 2 hours of direct labor and a large blanket takes 3 hours of direct labor?
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Shinto Corp. uses a standard cost system and manufactures one product. The variable costs per product follow: Budgeted fixed overhead costs for the month are $4,000, and Shinto expected to manufacture 2,000 units. Actual production, however, was only 1,800 units. Materials prices were 10% over standard, and labor rates were 5% over standard. Of the factory overhead expense, only 80% was used, and fixed overhead was $100 over budget. The actual variable overhead cost was $4,800. In materials usage, 8% more parts were used than were allowed for actual production by the standard, and 6% more labor hours were used than were allowed. Required: Calculate the materials and labor variances. Calculate the variances for overhead by the four-variance method. (Hint: First compute the fixed and variable overhead rates per hour.)
Moleno Company produces a single product and uses a standard cost system. The normal production volume is 120,000 units; each unit requires 5 direct labor hours at standard. Overhead is applied on the basis of direct labor hours. The budgeted overhead for the coming year is as follows: At normal volume. During the year, Moleno produced 118,600 units, worked 592,300 direct labor hours, and incurred actual fixed overhead costs of 2,150,400 and actual variable overhead costs of 1,422,800. Required: 1. Calculate the standard fixed overhead rate and the standard variable overhead rate. 2. Compute the applied fixed overhead and the applied variable overhead. What is the total fixed overhead variance? Total variable overhead variance? 3. CONCEPTUAL CONNECTION Break down the total fixed overhead variance into a spending variance and a volume variance. Discuss the significance of each. 4. CONCEPTUAL CONNECTION Compute the variable overhead spending and efficiency variances. Discuss the significance of each.
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