Prepare a flexible budget for overhead based on the above data.
Q: The following information is available for a manufacturer. Compute the direct labor rate and…
A: Direct Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked…
Q: Direct labor 18 per unit Direct materials 12 per unit Overhead Total variable overhead 31,000 Total…
A: Formula: Product cost under absorption costing = Direct materials + direct labor + Variable overhead…
Q: Calculate the variable overhead rate, efficiency, and total spending variances for Bullseye.
A:
Q: Variable costs Direct materials $4.00 per unit Direct labor $1.20 per unit Manufacturing overhead…
A: Solution: Particulars 25000 units 30000 units 35000 units Variable costs: Direct…
Q: Data for the past two years for Behavior Corp. are: 20A 20B Units produced 10,000 11,000 Overhead…
A: 20A 20B Estimated overhead: Fixed 50,000 56,000 Variable 130,000 142,000…
Q: Data Exhibit 10-1: Standard Cost Card Standard Quantity 2.9 pounds Inputs Standard Price $4.00 per…
A: Variance refers to the difference between the standards and the actual figures relating to…
Q: Average Cost per Unit Direct materials $6.70 Direct labor 3.25 Variable manufacturing overhead 1.60…
A: If 4,000 units are produced, the total amount of manufacturing overhead costs is closest to:…
Q: Manufacturing overhead 30,800 · Increase in direct materials 13, 000 ·…
A: Total cost of manufacturing = costs of direct materials used + direct labor costs + manufacturing…
Q: Family Fashions uses standard costs for its manufacturing division. The allocation base for overhead…
A: Option (c) is the correct answer
Q: Maximum units produced in a quarter (3-month period): 250,000 units Actual units produced in a…
A: working notes: Processing time is a Theoretical cycle time Non processing time = Actual Cycle time…
Q: ting at 70% capacity. The plant manager is co O each, a price that is projected to increase e…
A: To decide whether a product should be purchased or made, the purchase cost must be compared with the…
Q: ation: Direct labor rate $150 per DLH $ 120 per DLH Non-materials-related overhead Materials-related…
A: Overhead is an indirect cost incurred in the production process of the company. It is used to…
Q: $500 per unit ials $175 per unit $45 per unit nufacturing overhead $40 per unit nanufacturing…
A: As per rule, allowed to answer first three subparts and post the remaining in the next submission.…
Q: Sales (units) 2 500 Price $ 1000 per unit Materials costs $ 200 per unit Labour costs $150 per unit…
A: Formula: Operating profit =Revenues - Expenses
Q: Bullseye Company manufactures dartboards. Its standard cost information follows: Standard…
A: 1. Compute direct materials price, quantity and total spending variance for Bullseye as shown below:…
Q: 2. Sea Company reports the following information regarding its production cost. Units produced…
A: Variable cost of an product: =Direct materials used+Direct labor+variable overheads incurred.
Q: Percent of capacity 90% 100% 110% Direct labor hours 3,600 4,000 4,400 Units of output 900 1,000…
A: Preparation of flexible budget are as follows
Q: Sales Price Php 300 per unit Fixed Cost: Marketing and administrative Php 24,000.00 per period…
A: Variable Manufacturing Cost per unit = Direct Material + Direct Labor + Manufacturing Overhead…
Q: Fordham Corporation produces a single product. The standard costs for one unit of its Concourse…
A: Following are the computation of variable overhead efficiency variance:
Q: Sales (@ $25 per unit). $1,000,000 $1,250,000 Cost of goods sold (@ $18 per unit). 720,000 900,000…
A: Variable Costing:- This is a process of costing which excludes fixed manufacturing expenses from the…
Q: Raw material = Rp. 150.000 Labor cost = Rp. 60.000 Overhead variable cost = Rp 90.000 Fixed S&A cost…
A: Total variable cost = Rp150,000 + Rp60,000 + Rp90,000 + Rp30,000…
Q: 47. The following standard data are available for ABC Corp to produce one unit of product X: ·…
A: Material cost per unit = 3 Yards at 5 per yard = 3*5 = 15 Direct labor cost per unit = 2 hours at 10…
Q: Standard: Direct labor hours per unit Variable overhead per hour Fixed overhead per hour (based on…
A: Controllable variance = Budgeted overhead for actual production - Actual overhead Budgeted overhead…
Q: Percent of capacity 90% 100% 110% Direct labor hours 3,600 4,000 4,400 Units of output 900 1,000…
A: A flexible budget is prepared on the basis of the budgeted rate and on the basis of different…
Q: Overhead (2 hours @ $18.50 per hour) Standard cost per unit 37 $ 101 The standard overhead rate…
A: The direct material variation is the difference between the standard cost of materials derived from…
Q: Direct materials (3.0 pounds @ $4.00 per pound) Direct labor (1.7 hours @ $13.00 per hour) Overhead…
A: Direct labor variance Total is the sum of direct labor rate variance and direct labor efficiency…
Q: Total Production Costs $230,000 Level of Activity (Units Produced) Month July 3,500 August 250,000…
A: Hello, I am answering the first three subparts as per the policy and if you want others to be…
Q: 8. Given the following data, calculate product cost per unit under variable costing. Direct labor $7…
A: Variable costing is the method of costing, where only the variable costs are assigned to the cost of…
Q: Input quantity 1,000 kg Normal loss 10% of input Process costs £14,300 Actual output 880 kg…
A: Normal loss is considered and absorbed while calculating cost per unit where as abnormal loss is to…
Q: actual costs for direct Standard Costs Actual Costs ect materials 199,800 lbs. at $5.90 197,800 Ibs…
A: Solution a and B:
Q: Question One: Standard Cost for Product RST Materials (10kg x £20per kg) 200 Labour (5hrs x £16 per…
A: Since we answer upto three sub-parts, we shall answer first three. Please resubmit a new question…
Q: 3 Data 4 Exhibit 10-1: Standard Cost Card Inputs Standard Quantity Standard Price Direct materials…
A: Solution 1: Labor rate variance = (SR - AR) * AH = ($22 - $22.20) *1005 = $201 U
Q: Cost standards for one unit of product no. C77: Direct material $ 7.50 3 pounds at $2.50 per pound 5…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: Exhibit 10-1: Standard Cost Card Inputs Standard Quantity Standard Price 5 Direct materials Direct…
A: The variance is the difference between the actual data and standard output.
Q: Sales (20,000 units) Cost of sales: Direct materials Direct labor Variable overhead Fixed overhead…
A: The variance is the difference between actual data and standard production data. The flexible budget…
Q: Sales of the product 80,000 units Material=4,80,000 Labor=1,60,000 Variable Overheads=3,20,000…
A: Pricing plays an importanat role in sales of an product which was based on cost, market conditions…
Q: Assume (1) estimated fixed manufacturing overhead for the coming perlod of $200.000. (2) estimated…
A: Predetermined overhead rate = Fixed overhead rate + Variable overhead rate = ($200,000 / 55,000…
Q: Calculate the direct labor rate, efficiency, and total spending variances for Bullseye.
A: Calculate the direct labor rate, efficiency, and spending variances.
Q: Sales (17,500 units) $1,750,000 Production costs (23,000 units): Direct materials…
A: Under the Absorption Costing method, there is no difference between variable cost and fixed cost.…
Q: Standard Quantity 15 sq. ft. 10 hrs. Standard Price (Rate) $ 5 per sq. ft. $15 per hr. Standard Unit…
A: Standard costing: Under this costing method, the expected costs are used in the accounting records…
Q: The following information relates to Drexler Inc.’s Year 3 nancials:
A:
Q: Planned amount A - 100 units, planned amount B - 160 units Actual amoint A - 80 units, actual amount…
A:
Q: 27) Metalica Company applies overhead based on machine hours. At the beginning of 20x1, the company…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: $10,000 Sales (100 units at $100 a unit). Manufacturing cost of good sold Direct Labor. . Direct…
A: The Break-even point represents the situation where the company does not earn a profit or incur a…
Q: Sales volume per annum Unit selling price Production cost per unit: Direct materials Direct labor…
A: Explanation of Concept:- Cost : - is the expenses which have been incurred for production,…
Q: Details Product J Product G Product P Total Direct $25 $20 $11 $12,38,000 Material Cost Direct Labor…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…
Q: The costs incurred in the manufacture of 75,000 units of a product are: Direct materials $80,000…
A: Variable Cost Per Unit: Variable cost per unit includes the cost of production for each unit…
Q: The following information relates to Drexler Inc.’s Year 3 financials:
A:
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
| Percent of capacity | 90% | 100% | 110% |
| Direct labor hours | 3,600 | 4,000 | 4,400 |
| Units of output | 900 | 1,000 | 1,100 |
| Variable |
$2,880 | $3,200 | $3,520 |
| Fixed overhead | 5,600 | 5,600 | 5,600 |
| Total overhead | $8,480 | $8,800 | $9,120 |
Normal capacity = 100% and overhead is applied based on direct labor hours
Standard overhead rate = $8,800/4,000 = $2.20 per direct labor hour
Direct materials are $66.50 per unit.
Direct labor is $24.50 per hour.
Prepare a flexible budget for overhead based on the above data.
| Flexible Budget | |||
| 900 | 1,000 | 1,100 | |
| Direct Material | |||
| Direct Labor | |||
| Variable Overhead | |||
| Fixed Overhead | |||
| Total |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- What is the cost of direct labor f the conversion costs are $330.000 and manufacturing overhead is $275,000? $55,000 $275,000 $330,000 $605,000A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000Percent of capacity 90% 100% 110% Direct labor hours 3,600 4,000 4,400 Units of output 900 1,000 1,100 Variable overhead $3,600 $4,000 $4,400 Fixed overhead 5,600 5,600 5,600 Total overhead $9,200 $9,600 $10,000 Normal capacity = 100% and overhead is applied based on direct labor hours Standard overhead rate = $9,600/4,000 = $2.40 per direct labor hour Direct materials are $68.00 per unit. Direct labor is $25.00 per hour. Prepare a flexible budget for overhead based on the above data. Flexible Budget 900 1,000 1,100 Direct Material $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Direct Labor fill in the blank 4 fill in the blank 5 fill in the blank 6 Variable Overhead fill in the blank 7 fill in the blank 8 fill in the blank 9 Fixed Overhead fill in the blank 10 fill in the blank 11 fill in the blank 12 Total $fill in the blank 13 $fill in the blank 14 $fill in the blank 15
- Question Content Area Percent of capacity 90% 100% 110% Direct labor hours 3,600 4,000 4,400 Units of output 900 1,000 1,100 Variable overhead $3,600 $4,000 $4,400 Fixed overhead 5,200 5,200 5,200 Total overhead $8,800 $9,200 $9,600 Normal capacity = 100% and overhead is applied based on direct labor hours Standard overhead rate = $9,200/4,000 = $2.30 per direct labor hour Direct materials are $69.00 per unit. Direct labor is $21.50 per hour. Prepare a flexible budget for overhead based on the above data. Flexible Budget 900 1,000 1,100 Direct Material $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Direct Labor fill in the blank 4 fill in the blank 5 fill in the blank 6 Variable Overhead fill in the blank 7 fill in the blank 8 fill in the blank 9 Fixed Overhead fill in the blank 10 fill in the blank 11 fill in the blank 12 Total $fill in the blank 13 $fill in the blank 14 $fill in the blank 15Data for the past two years for Behavior Corp. are: 20A 20B Units produced 10,000 11,000 Overhead applied per unit P15 P15 Actual overhead: Fixed 50,000 55,000 Variable 95,000 150,000 Estimated overhead: Fixed 50,000 56,000 Variable 130,000 142,000 The company determines overhead rates based on estimated units to be produced. Required: Determine the estimated units of production used to obtain the overhead allocation rates in 20A and 20B. Determine the over- or underapplied factory overhead for each of the two years.Direct materials issued to production $170,000Indirect materials issued to production $45,000Other manufacturing overhead $255,000Overhead allocated $240,000Direct labour costs $80,000 Is the manufacturing overhead under- or over-applied? By how much?
- Total Product J Product K Direct material cost $700,000.00 $400,000.00 $300,000.00 Overhead cost $280,000.00 $160,000.00 $120,000.00 Selling & Administrative $140,000.00 $80,000.00 $60,000.00 Full Cost $1,120,000.00 $640,000.00 $480,000.00 Profit (25% of full cost) $280,000.00 $160,000.00 $120,000.00 Sales $1,400,000.00 $800,000.00 $600,000.00 Selling price per unit $80.00 $60.00 Using the prices calculated above, how much profit would result if the sales were 5,000 units of J and 15,000 units of K instead of 10,000 units of each?Q= New Shalimar Steel’s management has made the following estimates at the start of the year. Department A B Machine-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000 8,000 Direct materials cost . . . . . . . . . . . . . . . . . . . . . . . . . . $510,000 $650,000 Direct labor-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000 60,000 Direct labor cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $130,000 $420,000 Variable manufacturing overhead per machine-hour $1.50 – Variable manufacturing overhead per direct labor-hour – $2.00 Fixed manufacturing overhead cost . . . . . . . . . . . . . $497,000 $615,000 The following…Average Cost per UnitDirect materials . . . . . . . . . . . . . . . . . . . . . . . . . $7.00Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4.00Variable manufacturing overhead . . . . . . . . . $1.50Fixed manufacturing overhead . . . . . . . . . . . $5.00Fixed selling expense . . . . . . . . . . . . . . . . . . . $3.50Fixed administrative expense . . . . . . . . . . . . . $2.50Sales commissions . . . . . . . . . . . . . . . . . . . . . . $1.00Variable administrative expense . . . . . . . . . . $0.50 Answer all questions independently.Required:1. What is the incremental manufacturing cost incurred if the company increases production from 20,000 to 20,001 units?2. What is the incremental cost incurred if the company increases production and sales from 20,000 to 20,001 units?3. Assume that Kubin Company produced 20,000 units and expects to sell 19,800 of them. If a new customer unexpectedly emerges…
- Overheads cost analysisRProduction 4 400 000Materials handling 1 000 000Set-up 1 050 000Quality control 1 900 000Materials procurement 400 000Cost driver analysisCost drivers Product A Product B TotalDirect labour hours 320 000 180 000 500 000Number of set-ups 420 280 700Materials movements 700 300 1 000Number of orders 1 300 700 2 000Number of inspections 1 140 760 1 900 Annual outputProduct A 200 000 unitsProduct B 100 000 units Use the information provided below to calculate the overhead cost per product using the followingcosting systems: Traditional Absorption Costing, using direct labour hours as the basis for allocation.…Inputs Standard Quantity Standard Price Direct materials 3.0 pounds $4.00 per pound Direct labor 0.50 hours $22.00 per hour Variable manufacturing overhead 0.50 hours $6.00 per hour Actual results: Actual output 2,000 units Actual variable manufacturing overhead cost $7,140 Actual Quantity Actual price Actual direct materials cost 6,500 pounds $3.80 per pound Actual direct labor cost 1,050 hours $21.60 per hour Enter a formula into each of the cells marked with a ? below Main Example: Chapter 10 Exhibit 10-4: Standard Cost Variance Analysis–Direct Materials Standard Quantity Allowed for the Actual Output, at Standard Price ? pounds × ? per pound = Actual Quantity of Input, at Standard Price ? pounds × ? per pound = ? Actual Quantity of Input, at Actual Price ? pounds × ? per pound = ? Direct materials…Materials Php 65,000.00 (Php 15,000.00 is indirect) Labor Php 70,000.00 (Php 18,000.00 is indirect) Factory overhead Php 95,000.00 (including indirect materials and indirect labor) Unit Produced 1,000 Sold800 General and administrative expense Php 2,600.00 Office Salaries Php 18,600.00 4. Compute total period cost 5. If the selling price is Php 50.00 compute net