Lane Company manufacures a single product and applies overhead cost to that product using standard direct labor-hours. The budgeted variable manufacturing overhead is $3.60 per direct labor-hour and the budgeted fixed manufacturing overhead is $140,000 per year The standard quantity of materials is 4 pounds per unit and the standard cost is $7.00 per pound. The standard direct labor-hours per unit is 15 hours and the standard labor rate is $12.80 per hour The company planned to operate at a denominator activity level of 150,000 direct labor-hours and to produce 100,000 units of product during the most recent year. Actual activity and costs for the year were as follows: Actual ber of units produced Actal rect labon-hours worked Actual variable nanufacturing overhead cost incurred Actal fed aufacturing overhead cost incurred 120,800 195,000 $4 429,000 $1,170,000
Lane Company manufacures a single product and applies overhead cost to that product using standard direct labor-hours. The budgeted variable manufacturing overhead is $3.60 per direct labor-hour and the budgeted fixed manufacturing overhead is $140,000 per year The standard quantity of materials is 4 pounds per unit and the standard cost is $7.00 per pound. The standard direct labor-hours per unit is 15 hours and the standard labor rate is $12.80 per hour The company planned to operate at a denominator activity level of 150,000 direct labor-hours and to produce 100,000 units of product during the most recent year. Actual activity and costs for the year were as follows: Actual ber of units produced Actal rect labon-hours worked Actual variable nanufacturing overhead cost incurred Actal fed aufacturing overhead cost incurred 120,800 195,000 $4 429,000 $1,170,000
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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