Homework Help is Here – Start Your Trial Now!
Business
Accounting
Warner Manufacturing has established the following master flexible budget for the current year: Production in Units Variable expenses: Raw materials Direct labour Manufacturing overhead Total variable expenses Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Total expenses 80,000 $152,000 160,000 120,000 $432,000 $300,000 191,000 $491,000 $923,000 100,000 190,000 200,000 150,000 $540,000 b) Actual data for the year were as follows: Actual variable manufacturing overhead cost Actual fixed manufacturing overhead cost Actual machine hours incurred Units produced $300,000 191,000 $491,000 $1,031,000 120,000 228,000 240,000 180,000 $648,000 $300,000 191,000 $491,000 $1,139,000 Manufacturing overhead is applied on the basis of machine hours. At standard, each unit of product requires one machine hour to complete. Required: a) The denominator activity level is 100,000 units. What are the predetermined variable and fixed manufacturing overhead rates? $159,500 $306,000 110,000 100,000 Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances for the year.

Warner Manufacturing has established the following master flexible budget for the current year: Production in Units Variable expenses: Raw materials Direct labour Manufacturing overhead Total variable expenses Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Total expenses 80,000 $152,000 160,000 120,000 $432,000 $300,000 191,000 $491,000 $923,000 100,000 190,000 200,000 150,000 $540,000 b) Actual data for the year were as follows: Actual variable manufacturing overhead cost Actual fixed manufacturing overhead cost Actual machine hours incurred Units produced $300,000 191,000 $491,000 $1,031,000 120,000 228,000 240,000 180,000 $648,000 $300,000 191,000 $491,000 $1,139,000 Manufacturing overhead is applied on the basis of machine hours. At standard, each unit of product requires one machine hour to complete. Required: a) The denominator activity level is 100,000 units. What are the predetermined variable and fixed manufacturing overhead rates? $159,500 $306,000 110,000 100,000 Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances for the year.

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 8P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 29,000-unit level of...
See similar textbooks
icon
Related questions
Question
Warner Manufacturing has established the following master flexible budget for the current year: Production in Units Variable expenses: Raw materials Direct labour Manufacturing overhead Total variable expenses Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Total expenses 80,000 $152,000 160,000 120,000 $432,000 $300,000 191,000 $491,000 $923,000 100,000 b) Actual data for the year were as follows: Actual variable manufacturing overhead cost Actual fixed manufacturing overhead cost Actual machine hours incurred Units produced 190,000 200,000 150,000 $540,000 $300,000 191,000 $491,000 $1,031,000 120,000 228,000 240,000 180,000 $648,000 $300,000 191,000 $491,000 $1,139,000 Manufacturing overhead is applied on the basis of machine hours. At standard, each unit of product requires one machine hour to complete. Required: a) The denominator activity level is 100,000 units. What are the predetermined variable and fixed manufacturing overhead rates? $159,500 $306,000 110,000 100,000 Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances for the year.
Transcribed Image Text:Warner Manufacturing has established the following master flexible budget for the current year: Production in Units Variable expenses: Raw materials Direct labour Manufacturing overhead Total variable expenses Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Total expenses 80,000 $152,000 160,000 120,000 $432,000 $300,000 191,000 $491,000 $923,000 100,000 b) Actual data for the year were as follows: Actual variable manufacturing overhead cost Actual fixed manufacturing overhead cost Actual machine hours incurred Units produced 190,000 200,000 150,000 $540,000 $300,000 191,000 $491,000 $1,031,000 120,000 228,000 240,000 180,000 $648,000 $300,000 191,000 $491,000 $1,139,000 Manufacturing overhead is applied on the basis of machine hours. At standard, each unit of product requires one machine hour to complete. Required: a) The denominator activity level is 100,000 units. What are the predetermined variable and fixed manufacturing overhead rates? $159,500 $306,000 110,000 100,000 Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances for the year.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost control
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS