Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units...

Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 53,100 machine hours per year, which represents 26,550 units of output. Annual budgeted fixed factory overhead costs are $265,500 and the budgeted variable factory overhead cost rate is $3.00 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 20,500 units, which took 42,100 machine hours. Actual fixed factory overhead costs for the year amounted to $257,100 while the actual variable overhead cost per unit was $2.90.

Required:

Based on the information provided above, calculate the following factory overhead variances for the year. Indicate whether each variance is favorable (F) or unfavorable (U). (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units...

Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 50,000 machine hours per year, which represents 25,000 units of output. Annual budgeted fixed factory overhead costs are $250,000 and the budgeted variable factory overhead cost rate is $4 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was...

Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced.

Patel and Sons, Inc., uses a standard cost system to apply overhead costs to units produced....

Patel and Sons, Inc., uses a standard cost system to apply overhead costs to units produced. Practical capacity for the plant is defined as 50,000 machine hours per year, which represents 25,000 units of output. Annual budgeted fixed overhead costs are $250,000 and the budgeted variable overhead cost rate is $4 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 20,000 units, which...

Patel and Sons, Inc., uses a standard cost system to apply overhead costs to units produced....

Patel and Sons, Inc., uses a standard cost system to apply overhead costs to units produced. Practical capacity for the plant is defined as 55,500 machine hours per year, which represents 27,750 units of output. Annual budgeted fixed overhead costs are $277,500 and the budgeted variable overhead cost rate is $3.80 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 21,600 units, which...

The standard costs and actual costs for factory overhead for the manufacture of 2,800 units of...

The standard costs and actual costs for factory overhead for the manufacture of 2,800 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit at $0.74 per hour Variable overhead 3 hours per unit at $2.06 per hour Actual Costs Total variable cost, $17,900 Total fixed cost, $7,800 The total factory overhead cost variance is a.$1,780 favorable b.$2,964 favorable c.$596 unfavorable d.$1,780 unfavorable

The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of...

The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours)3 hours per unit at $0.74 per hour Variable overhead3 hours per unit at $1.93 per hour Actual Costs Total variable cost, $18,000 Total fixed cost, $8,200 The variable factory overhead controllable variance is a.$2,820 favorable b.$3,525 favorable c.$3,525 unfavorable d.$0

Q1: The standard costs and actual costs for factory overhead for the manufacture of 2,700 units...

Q1: The standard costs and actual costs for factory overhead for the manufacture of 2,700 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit @ $0.73 per hour Variable overhead 3 hours per unit @ $2.03 per hour Actual Costs Total variable cost, $18,000 Total fixed cost, $8,100 The amount of the fixed factory overhead volume variance is $1,110 unfavorable $1,387 unfavorable $1,110 favorable $0 Q2: The standard costs and...

Angie Manufacturing uses a standard cost system in which manufacturing overhead is applied to units of...

Angie Manufacturing uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard machine-hours. At standard, each unit of product requires one machine-hour to complete. The standard variable overhead is $1.75 per machine-hour and Budgeted Fixed Manufacturing Costs are $300,000 per year. The denominator level of activity is 150,000 machine-hours, or 150,000 units. Actual data for the year were as follows: Actual variable overhead cost $ 211,680 Actual fixed manufacturing overhead...

Problem 2 Speed Control Inc. Manufactures carburetors and uses a standard cost system. The standard factory...

Problem 2 Speed Control Inc. Manufactures carburetors and uses a standard cost system. The standard factory overhead costs per carburetor are based on machine hours and are as follows: Variable overhead (3 hours at $4/hour) $12 Fixed overhead (3 hours at $5/hour**) 15 Total overhead cost per unit 27 **Based on an expectation of 12,000 carburetors per month. The following additional information is available for the month of December: 10,000 carburetor s were produced although 12,000 had been scheduled for...

Required information [The following information applies to the questions displayed below.] Patel and Sons Inc. uses...

Required information [The following information applies to the questions displayed below.] Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 53,700 machine hours per year, which represents 26,850 units of output. Annual budgeted fixed factory overhead costs are $268,500 and the budgeted variable factory overhead cost rate is $3.20 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed...

Subjects