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

Expert Solution


Related 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...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT