MANAGERIAL ACCOUNTING W/CONNECT
15th Edition
ISBN: 9781259732454
Author: Garrison
Publisher: MCGRAW-HILL CUSTOM PUBLISHING
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Textbook Question
Chapter 10.A, Problem 7E
EXERCISE 10A-7 Relations Among Fixed
Selected information relating to Yost Company’s operations for the most recent year is given below:
The company applies overhead cost to products on the basis of standard machine-hours.
Required:
- What were the standard machine-hours allowed for the actual number of units produced?
- What was the total budgeted fixed overhead cost for the period?
- What was the fixed portion of the predetermined overhead rate?
- What was the fixed overhead volume variance?
Expert Solution & Answer
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Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following
information for its most recent year:
Total budgeted fixed overhead cost for the year
Actual fixed overhead cost for the year
Budgeted direct labor-hours
Actual direct labor-hours
Standard direct labor-hours allowed for the actual output
What is the fixed overhead volume variance?
Multiple Choice
O $20,000 U
$20,000 F
$9,000 U
$9,000 F
$ 300,000
$ 276,000
60,000
56,000
58, 200
QUESTION 3
The Royale Company has a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labor-hours (DLHS). The company
recorded the following data relating to manufacturing overhead for September: Number of units completed.
hours per unit
Quantity variance.
applied fixed overhead cost in the company's overhead budget for September was:
O $45,900
O $54,768
O $49,920
O $47,703
31,200 units: Standard direct labor-
$51,300;
$0.85 per DLH. The amount of
1.6 DLHS; Denominator activity
54,000 DLHS; Actual fixed overhead costs incurred
$3,468 Unfavorable; Fixed portion of the predetermined overhead rate
Subject - Acounting
The following data relate to direct labor costs for the current period:
Line Item Description
Value
Standard costs
7,500 hours at $11.80
Actual costs
6,300 hours at $10.70
The direct labor rate variance is
a. $21,090 unfavorable
b. $6,930 favorable
c. $21,090 favorable
d. $14,160 favorable
Chapter 10 Solutions
MANAGERIAL ACCOUNTING W/CONNECT
Ch. 10.A - EXERCISE 10A-1 Fixed Overhead Variances LO10-4...Ch. 10.A - EXERCISE 10A-2 Predetermined Overhead Rate;...Ch. 10.A - Prob. 3ECh. 10.A - EXERCISE 10A-4 Fixed Overhead Variances LO10-4...Ch. 10.A - EXERCISE 10A5 Using Fixed Overhead Variances LO104...Ch. 10.A - EXERCISE 10A-6 Predetermined Overhead Rate LO10-4...Ch. 10.A - EXERCISE 10A-7 Relations Among Fixed Overhead...Ch. 10.A - Prob. 8PCh. 10.A - PROBLEM 10A-9 Applying Overhead; Overhead...Ch. 10.A - PROBLEM 10A-10 Comprehensive Standard Cost...
Ch. 10.A -
PROBLEM 10A-11 Comprehensive Standard Cost...Ch. 10.A - Prob. 12PCh. 10.B - Prob. 1ECh. 10.B - Prob. 2ECh. 10.B - Prob. 3PCh. 10.B - Prob. 4PCh. 10.B - Prob. 5CCh. 10 - Prob. 1QCh. 10 - Why are separate price and quantity variances...Ch. 10 - 10-3 Who is generally responsible for the...Ch. 10 - The materials price variance can be computed at...Ch. 10 - 10-5 If the materials price variance is favorable...Ch. 10 - Prob. 6QCh. 10 - Prob. 7QCh. 10 - 10-8 What effect, if any, would you expect...Ch. 10 - 10-9 If variable manufacturing overhead is applied...Ch. 10 - 10-10 Why can undue emphasis on labor efficiency...Ch. 10 -
The Excel worksheet form that appears below is to...Ch. 10 - Prob. 2AECh. 10 - Prob. 1F15Ch. 10 - Prob. 2F15Ch. 10 - Prob. 3F15Ch. 10 - Prob. 4F15Ch. 10 - Prob. 5F15Ch. 10 - Prob. 6F15Ch. 10 - Prob. 7F15Ch. 10 - Prob. 8F15Ch. 10 - Prob. 9F15Ch. 10 - Preble Company manufactures one product. Its...Ch. 10 - Prob. 11F15Ch. 10 - Prob. 12F15Ch. 10 - Prob. 13F15Ch. 10 - Prob. 14F15Ch. 10 - Prob. 15F15Ch. 10 - EXERCISE 10-1 Direct Materials Variances LO10-1...Ch. 10 -
EXERCISE 10-2 Direct Labor Variances...Ch. 10 -
EXERCISE 10–3 Variable Overhead Variances...Ch. 10 - EXERCISE 10-4 Direct Labor and Variable...Ch. 10 -
EXERCISE 10-5 Working Backwards from Labor...Ch. 10 - EXERCISE 10-6 Direct Materials and Direct Labor...Ch. 10 - EXERCISE 10-7 Direct Materials Variances LOIO-1...Ch. 10 -
EXERCISE 10-8 Direct Materials and Direct Labor...Ch. 10 -
PROBLEM 10-9 Comprehensive Variance Analysis...Ch. 10 -
PROBLEM 10-10 Multiple Products, Materials, and...Ch. 10 - PROBLEM 10-11 Direct Materials and Direct Labor...Ch. 10 - PROBLEM 10-12 Variance Analysis in a...Ch. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - PROBLEM 10-15 Comprehensive Variance Analysis...Ch. 10 - Prob. 16PCh. 10 - Prob. 17C
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