Question
In: Accounting
Overhead is applied on the basis of direct labor hours. Three direct labor hours are required...
Overhead is applied on the basis of direct labor hours. Three direct labor hours are required for each product unit. Planned production for the period was set at 8,000 units. Manufacturing overhead for the period is budgeted at $204,000, of which 30 percent is fixed. The 26,200 hours worked during the period resulted in production of 8,500 units. Manufacturing overhead cost incurred was $220,500.
Required:
a. Calculate the overhead spending
variance:
b. Calculate the overhead efficiency variance:
c. Calculate the overhead volume variance:
Solutions
ekkarill92 answered 2 years agoRelated Solutions
MAnufacturing overhead is applied on the basis of direct labor hours. The direct labor hours for...
MAnufacturing overhead is applied on the basis of direct labor
hours. The direct labor hours for the period are 500 and the
estimated manufacturing overhead is 2000. actual direct labor hours
were 160 and actual overhead was 1000.
Compute the manufacturing overhead applied during this
period.
Freytag Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established...
Freytag Corporation's
variable overhead is applied on the basis of direct labor-hours.
The company has established the following variable overhead
standards for product N06C:
Standard direct
labor-hours
3.7
hours per unit of
N06C
Standard variable overhead
rate
$
5.50
per hour
The following data
pertain to the most recent month's operations during which 1,800
units of product N06C were made:
Actual direct
labor-hours worked
6,500
Actual variable overhead
incurred
$
36,640
Required:
a. What was the
variable overhead rate variance...
Highfill Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card...
Highfill Corporation's variable overhead is applied on the basis
of direct labor-hours. The standard cost card for product D80D
specifies 8.4 direct labor-hours per unit of D80D. The standard
variable overhead rate is $5.60 per direct labor-hour. During the
most recent month, 800 units of product D80D were made and 6,800
direct labor-hours were worked. The actual variable overhead
incurred was $41,140. Required: Calculate both the variable
overhead rate variance and efficiency variance for the month.
Better Fitness Gear applies overhead on the basis of direct labor hours. Five direct labor hours...
Better Fitness Gear applies overhead on the basis of direct
labor hours. Five direct labor hours are required for each unit
produced. Planned production for the period was set at 8,000 units.
Budgeted fixed manufacturing overhead for the period is budgeted at
$20,000 and variable manufacturing overhead is budgeted at
$100,000. The 48,500 hours worked during the period resulted in
production of 9,500 units. Actual manufacturing overhead cost
incurred was $156,000.
Required:
Calculate the three overhead variances:
a. Total...
James Corp. applies overhead on the basis of direct labor hours. For the month of May,...
James Corp. applies overhead on the basis of direct labor hours.
For the month of May, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following overhead budget:
Operating Levels
Overhead Budget
80%
Production in units
10,000
Standard direct labor hours
36,000
Budgeted overhead
Variable overhead costs
Indirect materials
$
21,600
Indirect labor
36,000
Power
7,200
Maintenance
3,600
Total variable costs
68,400
Fixed overhead costs
Rent of factory building
20,000
Depreciation—Machinery...
James Corp. applies overhead on the basis of direct labor hours. For the month of May,...
James Corp. applies overhead on the basis of direct labor hours.
For the month of May, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following overhead budget:
Operating Levels
Overhead
Budget
80%
Production in
units
10,000
Standard direct
labor hours
26,000
Budgeted
overhead
Variable
overhead costs
Indirect
materials
$
15,600
Indirect
labor
26,000
Power
7,800
Maintenance
2,600
Total variable
costs
52,000
Fixed overhead
costs
Rent of factory
building
22,000
Depreciation—Machinery...
James Corp. applies overhead on the basis of direct labor hours. For the month of May,...
James Corp. applies overhead on the basis of direct labor hours.
For the month of May, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following overhead budget:
Operating Levels
Overhead Budget
80%
Production in units
10,000
Standard direct labor hours
30,000
Budgeted overhead
Variable overhead costs
Indirect materials
$
21,000
Indirect labor
30,000
Power
6,000
Maintenance
3,000
Total variable costs
60,000
Fixed overhead costs
Rent of factory building
14,000
Depreciation—Machinery...
James Corp. applies overhead on the basis of direct labor hours. For the month of May,...
James Corp. applies overhead on the basis of direct labor hours.
For the month of May, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following overhead budget:
Operating Levels
Overhead Budget
80%
Production in units
10,000
Standard direct labor hours
27,000
Budgeted overhead
Variable overhead costs
Indirect materials
$
16,200
Indirect labor
27,000
Power
5,400
Maintenance
5,400
Total variable costs
54,000
Fixed overhead costs
Rent of factory building
23,000
Depreciation—Machinery...
James Corp. applies overhead on the basis of direct labor hours. For the month of May,...
James Corp. applies overhead on the basis of direct labor hours.
For the month of May, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following overhead budget:
Operating Levels
Overhead
Budget
80%
Production in
units
10,000
Standard direct
labor hours
27,000
Budgeted
overhead
Variable
overhead costs
Indirect
materials
$
16,200
Indirect
labor
27,000
Power
5,400
Maintenance
5,400
Total variable
costs
54,000
Fixed overhead
costs
Rent of factory
building
23,000
Depreciation—Machinery...
James Corp. applies overhead on the basis of direct labor hours. For the month of May,...
James Corp. applies overhead on the basis of direct labor hours.
For the month of May, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following overhead budget:
Operating Levels
Overhead Budget
80%
Production in units
10,000
Standard direct labor hours
20,000
Budgeted overhead
Variable overhead costs
Indirect materials
$
15,000
Indirect labor
20,000
Power
5,000
Maintenance
2,000
Total variable costs
42,000
Fixed overhead costs
Rent of factory building
15,000
Depreciation—Machinery...
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