MCC 24 C6. (See the problem below) Pinugu Corporation is preparing its factory overhead cost budget for the third quarter of 200B. The management plans to produce 200,000 units for the said quarter. Past experience has shown that the company's product is produced at the rate of 4 units per hour. Variable rates per direct labor hour are as follows: PO.76 Indirect materials and supplies Power 1.36 2.80 Repairs and maintenance Other variable overhead 0.96 Total P5.88 Total fixed overhead cost is budgeted at P147,200. For product costing purposes, a fixed factory overhead rate of P3.20 per direct labor hour has been established. The total factory overhead cost per unit of product is A.P 1.47 В. Р11.35 С. Р36.32 D. P 2.27

MCC 24 C6. (See the problem below) Pinugu Corporation is preparing its factory overhead cost budget for the third quarter of 200B. The management plans to produce 200,000 units for the said quarter. Past experience has shown that the company's product is produced at the rate of 4 units per hour. Variable rates per direct labor hour are as follows: PO.76 Indirect materials and supplies Power 1.36 2.80 Repairs and maintenance Other variable overhead 0.96 Total P5.88 Total fixed overhead cost is budgeted at P147,200. For product costing purposes, a fixed factory overhead rate of P3.20 per direct labor hour has been established. The total factory overhead cost per unit of product is A.P 1.47 В. Р11.35 С. Р36.32 D. P 2.27

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter16: Job Order Costing

Section: Chapter Questions

Problem 4CMA: Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and...

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Refer to Exercise 8.27. At the end of the year, Meliore, Inc., actually produced 310,000 units of the standard model and 115,000 of the deluxe model. The actual overhead costs incurred were: Required: Prepare a performance report for the period. In an attempt to improve budgeting, the controller for Meliore, Inc., has developed a flexible budget for overhead costs. Meliore, Inc., makes two types of products, the standard model and the deluxe model. Meliore expects to produce 300,000 units of the standard model and 120,000 units of the deluxe model during the coming year. The standard model requires 0.05 direct labor hour per unit, and the deluxe model requires 0.08. The controller has developed the following cost formulas for each of the four overhead items: Required: 1. Prepare an overhead budget for the expected activity level for the coming year. 2. Prepare an overhead budget that reflects production that is 10 percent higher than expected (for both products) and a budget for production that is 20 percent lower than expected.
Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc., budgeted sales of the following. At the end of the year, actual sales revenue for Product R and Product S was 3,075,000 and 3,254,000, respectively. The actual price charged for Product R was 25 and for Product S was 20. Only 10 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled 540,000 for this product. Required: 1. Calculate the sales price and sales volume variances for each of the three products based on the original budget. 2. Suppose that Product T is a new product just introduced during the year. What pricing strategy is Eastman, Inc., following for this product?
Professional labor cost budget Based on the data in Exercise 13-5 and assuming that the average compensation per hour for staff is $36 and for partners is $300. prepare a professional labor cost budget for Day & Spieth, CPAs, for the year ending March 31. 20Y6. Use the following column headings:
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.)
Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450 hours per the standard cost card. Their employees were paid $15.75 per hour for the month of June. The standard cost card uses $15.50 as the standard hourly rate. A. Compute the direct labor rate and time variances for the month of June, and also calculate the total direct labor variance. B. If the standard rate per hour was $16.00, what would change?
Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing cost information for the next year: If Adam uses the step-down (sequential) method, beginning with the Maintenance Department, to allocate support department costs to production departments, the total overhead (rounded to the nearest dollar) for the Machining Department to allocate to its products would be: a. 407,500. b. 422,750. c. 442,053. d. 445,000.
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Ikawna Corp uses machine hours as a base for its factory overhead rate. The following information is available for the year 2021: Budgeted machine hours, 271,000 MH; FOH rate, P5/MH; Underapplied FOH, P16,900; Actual machine hours, 265,200MH. How much is the actual FOH cost? P1,342,900 P1,309,100 P1,381,900 P1,348,100
31 The following budget data are available for Happy Company: Estimated direct labor hours 12,000 Estimated direct labor dollars $90,000 Estimated factory overhead costs $179,000 Actual direct labor hours 11,500 Actual direct labor dollars $92,000 Actual factory overhead costs $180,000 If factory overhead is to be applied based on direct labor dollars, the predetermined overhead rate is Group of answer choices 199% 196% $15.65 $14.92
23. The following information was taken from the annual manufacturing overhead cost budget of Coen Company. Variable manufacturing overhead costs P46,200 Fixed manufacturing overhead costs P27,720 Normal production level in labor hours 23,100 Normal production level in units 5,775 Standard labor hours per unit 4 During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was P75,600. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. Coen’s controllable overhead variance is Group of answer choices P840 U. P3,080 U. P3,920 U. P11,200 U. 24. The following information was taken from the annual manufacturing overhead cost budget of Coen Company. Variable manufacturing overhead costs…
Mercia Manufacturers Co. has the following details for the variable overheads on its product MM7 for the year to 31st March 2022. Each MM7 was expected to take three labour hours and variable overheads were expected to be £4.25 per labour hour. The company expected to make and sell 200,000 units of MM7. Budgeted fixed overheads were £25,000. In fact, in the year ended 31s March 2022 the company made 180,000 MM7s using 630,000 labour hours. The actual cost of variable overheads was £2,800,000 and fixed overheads £23,000. Required: Calculate the following variances for Mercia Manufacturers Co. for the year ended 31st March 2022: i. variable overhead expenditure variance ii. variable overhead efficiency variance ii. fixed overhead expenditure variancMercia Manufacturers Co. has the following details for the variable overheads on its product MM7 for the year to 31st March 2022. Each MM7 was expected to take three labour hours and variable overheads were expected to be £4.25 per labour…