MANAGERIAL ACCOUNTING F/MGRS.
5th Edition
ISBN: 9781259969485
Author: Noreen
Publisher: RENT MCG
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Chapter 5A, Problem 5A.5P
1.
To determine
Introduction:
To compute: The cot per hour of the resource supplied in engineering department, time driven activity rate for all three activities, and the total labor cost consumed by customer A, B and C.
2.
To determine
Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.
To compute: The used capacity in hour, unused capacity in hour, unused capacity in number of employees, impact on expenses of matching capacity with demand.
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Last question 4)
The company uses normal costing with two direct-cost categories:
Direct materials
Direct manufacturing labor
Furthermore, the company uses two manufacturing overhead cost pools:
Machining department with machine- hours as the allocation base
Assembly department with direct manufacturing labor costs as the allocation base.
The budget for the plant in 2020 is as follows:
Production plant
Machine department
Assembly department
Manufacturing overhead costs
13 597 500
12 271 500
Direct manufacturing labor costs
1 455 000
6 075 000
Direct manufacturing labor-hours
54 000
22 500
Machine-hours
277 500
55 500
What is the budgeted manufacturing overhead rate in the machining and the assembly department?
Overhead is the direct cost involved in the production process of the business of the company
Calculation of budgeted manufacturing overhead rate in machine department:
Budgeted manufacturing…
I. PROBLEM SOLVINGAnswer the following items on the space provided. Show your computations.At the beginning of 201A, ABC Company had the following standard costs for one (1) of its chemical products:Direct material (3 pounds at P3.20) P9.60Labor standard (0.9 hours at P9.00) 8.10Variable overhead (0.9 hours at P1.50) 1.35Fixed overhead (0.9 hours at P4.00) 3.60Total P22.65ABC computes its overhead rates using budgeted capacity, which is 144,000 units. Actual results for 201Aare:Units produced 140,000 unitsMaterials purchased 421,175 lbs. at P3.30Materials used 421,000 lbs.Direct labor 128,750 hrs at P8.90Fixed overhead P517,525Variable overhead 218,000Required: Indicate whether conditions are favorable or unfavorable. 4. Labor rate variance (LRV)5. Labor efficiency variance (LEV)6. Variable overhead (VOH) rate variance7. VOH efficiency variance8. Fixed overhead (FOH) spending variance9. FOH volume variance
I. PROBLEM SOLVINGAnswer the following items on the space provided. Show your computations.At the beginning of 201A, ABC Company had the following standard costs for one (1) of its chemical products:Direct material (3 pounds at P3.20) P9.60Labor standard (0.9 hours at P9.00) 8.10Variable overhead (0.9 hours at P1.50) 1.35Fixed overhead (0.9 hours at P4.00) 3.60Total P22.65ABC computes its overhead rates using budgeted capacity, which is 144,000 units. Actual results for 201Aare:Units produced 140,000 unitsMaterials purchased 421,175 lbs. at P3.30Materials used 421,000 lbs.Direct labor 128,750 hrs at P8.90Fixed overhead P517,525Variable overhead 218,000Required: Indicate whether conditions are favorable or unfavorable. 1. Material purchase price variance (MPPV)2. Material price usage variance (MPUV)3. Material quantity variance (MQV)4. Labor rate variance (LRV)5. Labor efficiency variance (LEV)6. Variable overhead (VOH) rate variance7. VOH efficiency variance8. Fixed overhead (FOH)…
Chapter 5A Solutions
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