Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Budgeted: $285,600 Overhead 84,000 Machine hours 10,200 Direct labour hours Actual : $285,000 Overhead 82,200 Machine hours 9,930 Direct labour hours $1,050,000 Prime cost 150,000
Q: FAITH, the consultant of JOY had summarized the following standard cost data extracted from the…
A: Budgeted hours = normal capacity x budgeted hours per unit = 400 units x 5 hours x 12 months =…
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A: Standard costing is the one that is used to compare the actual and expected results. The difference…
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A: d. Compute the direct labor rate variance. Direct labor rate variance = standard cost of actual…
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A: Overhead variances: Actual overhead costs vary from the standard overhead costs When operations…
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A: Total budgeted fixed factory overhead = Total applied factory overhead - Total Variable factory…
Q: Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units…
A: An overhead variance refers to the difference between the budgeted overhead expense and the actual…
Q: XYZ Company, which applies overhead on the basis of direct labor hours. Two direct labor hours are…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Mona moobl3 Ltd operates a standard costing system and absorbs overheads on the basis of standard…
A: Option b is correct.
Q: Ripley, Inc., costs products using a normal costing system. The following data are available for…
A: Applied overhead refers to the total overhead allocated to the actual units produced during the…
Q: Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units…
A: Fixed Overhead Spending Variance is the difference between the Actual Fixed Overhead Cost and…
Q: MARISSA Co., the consultant of MARISOL Co. had summarized the following standard cost data extracted…
A: Budgeted hours = normal capacity x budgeted hours per unit = 400 units x 5 hours x 12 months =…
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A: Computation of the overhead rate for each activity is as follows:
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A: Solution: Particulars Budgeted($) Actual($) Budget vs Actual variance Manufactured fixed…
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A: Predetermined overhead rates are used to allocate the overhead expenses. It can be calculated on the…
Q: The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 50,000…
A:
Q: FAITH, the consultant of JOY had summarized the following standard cost data extracted from the…
A: Budgeted hours = normal capacity x budgeted hours per unit = 400 units x 5 hours x 12 months =…
Q: Vin Diesel Company uses a standard costing system in which it applies manufacturing overhead to…
A: Formula: Total budgeted fixed factory overhead = Total applied factory overhead - Total Variable…
Q: Hollins, Inc., a manufacture of computer chips, employs activity-based costing. The budgeted data…
A: Under or over overhead applied terms comes when there is difference which exist between the overhead…
Q: ard machine-hours (MHs). The company has provided the following data for the most recent month:
A: The total cost of production of a good comprises of the total fixed cost of production and the total…
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A: Since you have posted question with multiple sub-parts, we shall be solving the first three for you.…
Q: Schneider inc. had the following information relating to year 1: Budgeted manufacturing overhead…
A: Overheads are considered as fixed and common expenses that should be allocated to the products on…
Q: ngel Corporation makes a product with the following standard costs: Standard Quantity or Hours…
A: Variance: When the actual cost differs from the standard cost(budgeted cost), it is called variance.…
Q: [The following information applies to the questions displayed below.] Antuan Company set the…
A: The variable cost per unit remains constant and total fixed costs remains constant at every level of…
Q: Cushing, Inc., costs products using a normal costing system. The following data are available for…
A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…
Q: Consider the following additional information about these two products. If activity-based costing is…
A: Overhead means the amount of expenses incurred indirectly to produce the goods. These expenses can…
Q: The following information was gathered for the Milestone Company for the year: Budgeted overhead…
A: Solution... Budgeted overhead costs = $300,000 Budgeted activity level = 30,000 machine hours…
Q: [The following information applies to the questions displayed below.) Antuan Company set the…
A: Antuan company…
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A: Overhead rate = Budgeted factory overhead /Budgeted direct labor cost = $800,000 / $1,000,000 =…
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A: Computation of the variable overhead efficiency variance is as follows: Formula: Variable overhead…
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A: Product cost includes all those costs which are incurred during the manufacturing process of the…
Q: Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current…
A: Fixed overhead Spending variance = Budgeted Fixed overhead - Actual Fixed Overhead Fixed overhead…
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A: The predetermined overhead rate is calculated as total estimated overhead cost divided by total…
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A: Variable overhead rate variance = (Actual Taye -Standard Rate)*Actual hours worked
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A: Overhead Rate: A cost that is allotted to the manufacturing of a product or service is referred to…
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A: Total overhead expenditure = $108,875 Machine hours = 30,000 hours Absorption rate (per machine…
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A: Solution: Work in process account is debited for direct materials cost used during the period at…
Q: EMARISSA Co., the consultant of MARISOL Co. Had summxized the following standard cost data extracted…
A: Budgeted hours = normal capacity x budgeted hours per unit = 400 units x 5 hours x 12 months =…
Q: Mona moobl3 Ltd operates a standard costing system and absorbs overheads on the basis of standard…
A: Overheads are the indirect costs related with the production and manufacturing. These costs can not…
Q: The following data are the actual results for Marvelous Marshmallow Company for October. Actual…
A: 1. Use any of the methods explained in the chapter to compute the following variances. Indicate…
Q: XYZ Company, which applies overhead on the basis of direct labor hours. Two direct labor hours are…
A: Fixed costs are costs that do not change with the change in the level of output. Budgeted…
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A: As per the given information: Computation of Predetermined overhead rate based on direct labor…
Q: The following information is provided for the year. Actual direct labour hours worked 36,000…
A: Overhead allocation is based on a predetermined overhead rate. The predetermined overhead rate can…
Q: Vin Diesel Company uses a standard costing system in which it applies manufacturing overhead to…
A: Total budgeted fixed factory overhead = Total applied factory overhead - Total Variable factory…
Q: MARISSA Co., the consultant of MARISOL Co. had summarized the following standard cost data extracted…
A: Budgeted hours = normal capacity x budgeted hours per unit = 400 units x 5 hours = 2000 hours…
Q: Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current…
A: Actual overhead = $241,400 + $556,200 = $797600 Budgeted Fixed Overhead = Standard variable overhead…
Q: The Gathering Sound, Inc. collected the following data regarding production of one of its products.…
A: Fixed overhead volume variance = Budgeted Fixed Overhead - Applied Fixed Overhead Standard Hours for…
Q: The Ring The Bells, Co. collected the following data regarding production of one of its products.…
A: Variable overhead cost variance = Actual variable overhead - standard overhead for actual output
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A: Cost accounting is regarded as the process of collecting, analyzing, summarizing and evaluating…
Q: JohnAssociates produces carburetors for small engines and uses a normal costing system. The…
A: Note : Since you have posted a question with more than 3 sub-parts and according to our guideline we…
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- Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing basis are as follows: During the year, the company had the following activity: Actual fixed overhead was 12,000 less than budgeted fixed overhead. Budgeted variable overhead was 5,000 less than the actual variable overhead. The company used an expected actual activity level of 12,000 direct labor hours to compute the predetermined overhead rates. Any overhead variances are closed to Cost of Goods Sold. Required: 1. Compute the unit cost using (a) absorption costing and (b) variable costing. 2. Prepare an absorption-costing income statement. 3. Prepare a variable-costing income statement. 4. Reconcile the difference between the two income statements.Minor Co. has a job order cost system and applies overhead based on departmental rates. Service Department 1 has total budgeted costs of 168,000 for next year. Service Department 2 has total budgeted costs of 280,000 for next year. Minor allocates service department costs solely to the producing departments. Service Department 1 cost is allocated to producing departments on the basis of machine hours. Service Department 2 cost is allocated to producing departments on the basis of direct labor hours. Producing Department 1 has budgeted 8,000 machine hours and 12,000 direct labor hours. Producing Department 2 has budgeted 2,000 machine hours and 12,000 direct labor hours. What is the total cost allocation from the two service departments to Producing Department 1? a. 173,600 b. 140,000 c. 134,400 d. 274,400Adam 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.
- 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.)USD Inc. has established the following standard cost per unit: Although 10,000 units were budgeted, 12,000 units were produced. The Purchasing department bought 50,000 lb of materials at a cost of $237,500. Actual pounds of materials used were 46,000. Direct labor cost was $287,500 for 25,000 hours worked. Required: Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. Make journal entries to record the labor variances.Carlo Lee Corp. has established the following standard cost per unit: Although 10,000 units were budgeted, only 8,800 units were produced. The purchasing department bought 55,000 lb of materials at a cost of $123,750. Actual pounds of materials used were 54,305. Direct labor cost was $186,550 for 18,200 hours worked. Required: Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. Make journal entries to record the labor variances.
- 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.Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: The standard price paid per pound of direct materials is 1.60. The standard rate for labor is 8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows: The company expects to work 12,000 direct labor hours during the year; standard overhead rates are computed using this activity level. For every small stapler produced, the company produces two regular staplers. Actual operating data for the year are as follows: a. Units produced: small staplers, 35,000; regular staplers, 70,000. b. Direct materials purchased and used: 56,000 pounds at 1.5513,000 for the small stapler and 43,000 for the regular stapler. There were no beginning or ending direct materials inventories. c. Direct labor: 14,800 hours3,600 hours for the small stapler and 11,200 hours for the regular stapler. Total cost of direct labor: 114,700. d. Variable overhead: 607,500. e. Fixed overhead: 350,000. Required: 1. Prepare a standard cost sheet showing the unit cost for each product. 2. Compute the direct materials price and usage variances for each product. Prepare journal entries to record direct materials activity. 3. Compute the direct labor rate and efficiency variances for each product. Prepare journal entries to record direct labor activity. 4. Compute the variances for fixed and variable overhead. Prepare journal entries to record overhead activity. All variances are closed to Cost of Goods Sold. 5. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both products. Can you compute the total direct materials and direct labor usage variances? Explain.JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT estimated variable factory overhead of 600,000 and fixed factory overhead of 400,000. JoyT uses a standard costing system, and factory overhead is allocated to units produced using standard direct labor hours. The level of activity budgeted for this year was 10,000 direct labor hours, and JoyT used 10,300 actual direct labor hours. Based on the output accomplished during this year, 9,900 standard direct labor hours should have been used. Actual variable factory overhead was 596,000, and actual fixed factory overhead was 410,000 for the year. Based on this information, the variable factory overhead controllable variance for JoyT for this year was: a. 24,000 unfavorable. b. 2,000 unfavorable. c. 4,000 favorable. d. 22,000 favorable.
- ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc. had budgeted $27,000 for fixed overhead. Actual machine hours were 5.000. Standard hours for units made were 4,800. The standard variable overhead rate was $4.10. What is the variable overhead rate variance?At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.Fargo Co. manufactures products in batches of 100 units per batch. The company uses a standard cost system and prepares budgets that call for 500 of these batches per period. Budgeted fixed overhead is $60,000 per period. The standard costs per batch follow: During the period, 503 batches were manufactured, and the following costs were incurred: Required: Calculate the variances for materials, labor, and overhead. For overhead, use the two-variance method. (Hint: Please use the information given about the budgeted fixed overhead to compute the variable overhead rate.)