Question
In: Accounting
Variable OH rate $3.35 Fixed OH rate $1.80 Hours 18,900 17,955* Fixed overhead $46,000 Actual variable...
| Variable OH rate | $3.35 | |
| Fixed OH rate | $1.80 | |
| Hours | 18,900 | 17,955* |
| Fixed overhead | $46,000 | |
| Actual variable overhead | $67,430 | |
| Total factory overhead | $101,450 |
*Actual hours are equal to standard hours for units produced.
The total factory overhead cost variance is
a.$4,866.75 favorable
b.$8,981.75 favorable
c.$4,866.75 unfavorable
d.$8,981.75 unfavorable
Solutions
Expert Solution
Option D.Why D?
Variable Factory Overhead= Actual Variable Factory Overhead – Budgeted Variable Factory Overhead
(A) = $67,430 – (17,955 hours × $3.35) = $7,280.75 Unfavorable Variance Fixed Factory Overhead Volume Variance = (Standard Hours NormalCapacity – SHfor Actual Units Produced) × Fixed Factory Rate
(B) = (18,900 hours – 17,955 hours) × $1.80 = $1,701 Total factory overhead cost variance = Variable factory overhead variance + Fixed factory overhead volume variance
= $7,280.75 + $1,701 = $8,981.75 Unfavorable Variance
ekkarill92 answered 2 years agoRelated Solutions
Variable overhead $ 6,900 Fixed overhead 10,500 Actual labor cost (4,000 direct-labor hours) 74,400 Actual material...
Variable overhead
$
6,900
Fixed overhead
10,500
Actual labor cost (4,000 direct-labor hours)
74,400
Actual material cost (24,500 pounds purchased and used)
51,450
Overhead is budgeted and applied using direct-labor hours in a
standard costing system. Standard cost and annual budget
information are as follows:
Standard Costs per Case
Direct labor (4 hours at $18 per hour)
$
72.00
Direct material (30 pounds at $1.80 per pound)
54.00
Variable overhead (4 direct-labor hours at $2.10 per hour)
8.40
Fixed overhead...
The Alphonse Company allocates fixed overhead costs by machine hours and variable overhead costs by direct...
The Alphonse Company allocates fixed overhead costs by machine
hours and variable overhead costs by direct labor hours. At the
beginning of the year the company expects fixed overhead costs to
be $600,000 and variable costs to be $800,000. The expected machine
hours are 6,000 and the expected direct labor hours are 80,000. The
actual fixed overhead costs are $700,000 and the actual variable
overhead costs are $750,000. The actual machine hours during the
year are 5,500 and the actual...
The difference between the actual variable overhead cost and the standard variable overhead cost for the...
The difference between the actual variable overhead cost and the
standard variable overhead cost for the actual volume of the
overhead activity base is known as the
Select one:
A. variable overhead efficiency variance.
B. fixed overhead budget variance.
C. variable overhead spending variance.
D. fixed overhead volume variance.
Direct Materials, Direct Labor, and Reports budgeted and actual costs for variable and fixed factory overhead...
Direct Materials, Direct Labor, and Reports budgeted and actual
costs for variable and fixed factory overhead along with the
related controllable and volume variances.Factory Overhead Cost
Variance Analysis
Mackinaw Inc. processes a base chemical into plastic. A detailed
estimate of what a product should cost.Standard costs and actual
costs for direct materials, direct labor, and factory overhead
incurred for the manufacture of 7,200 units of product were as
follows:
Standard Costs
Actual Costs
Direct materials
9,400 lb. at $5.20
9,300...
The standard variable overhead cost rate for Harris Manufacturing is $30.00 per unit. Budgeted fixed overhead...
The standard variable overhead cost rate for Harris
Manufacturing is $30.00 per unit. Budgeted fixed overhead cost is
$38,700. Harris Manufacturing budgeted 4,300 units for the current
period and actually produced 4,400 finished units. What is the
fixed overhead volume variance?
Assume the allocation base for fixed overhead costs is
the number of units expected to be produced.
A. $900 favorable
B. $3,000 favorable
C. $3,000 unfavorable
D. $900 unfavorable
Estimated manufacturing overhead $ 500,000 Actual manufacturing overhead $ 550,000 Estimated direct labor hours 10,000 hours...
Estimated manufacturing overhead $ 500,000
Actual manufacturing overhead $ 550,000
Estimated direct labor hours 10,000 hours
Actual direct labor hours 10,500
13.
Calculate the predetermined overhead allocation rate using
direct labor hours as the allocation base.
14.
Determine the amount of overhead allocated during the year.
Record the journal entry.
15.
Determine the amount of underallocated or overallocated
overhead. Record the journal entry to adjust Manufacturing
Overhead.
Variable Direct Costs Machine Hours Fixed Production Costs Fixed Overhead Costs Units Sold Unit Selling price...
Variable Direct Costs
Machine Hours
Fixed Production Costs
Fixed Overhead Costs
Units Sold
Unit Selling price
Machine Hours per
Unit
Total Sales Dollars
Variable Cost per
Unit
Total Contribution
Dollars
Contribution Dollars per
Unit
Contribution Margin
Percentage
Item #1
$65,000
10000
$25,000
$2,000
22500
$10
Item #2
$55,000
20000
$22,000
$2,500
23000
$8
Item #3
$42,000
7500
$15,000
$1,750
27500
$7
Item #4
$27,000
5000
$5,000
$500
11000
$6
Complete the grey cells in the
above table
Which product
would...
Variable Direct Costs Machine Hours Fixed Production Costs Fixed Overhead Costs Units Sold Unit Selling price...
Variable Direct Costs
Machine Hours
Fixed Production Costs
Fixed Overhead Costs
Units Sold
Unit Selling price
Machine Hours per
Unit
Total Sales Dollars
Variable Cost per
Unit
Total Contribution
Dollars
Contribution Dollars per
Unit
Contribution Margin
Percentage
Item #1
$65,000
10000
$25,000
$2,000
22500
$10
Item #2
$55,000
20000
$22,000
$2,500
23000
$8
Item #3
$42,000
7500
$15,000
$1,750
27500
$7
Item #4
$27,000
5000
$5,000
$500
11000
$6
Complete the grey cells in the
above table
Which product
would...
Gallop, Inc. budgeted its variable overhead application rate as $0.25 per direct labor hour. Actual variable...
Gallop, Inc. budgeted its variable overhead application rate as
$0.25 per direct labor hour. Actual variable overhead cost for the
period is $9,700. If the actual number of labor hours worked during
the period are 38,500 and if there is a total unfavorable flexible
variable overhead variance of $230, calculate the standard number
of direct labor hours allowed for the output achieved by Gallop
within this period.
a. 38,500
b. 37,880
c. 37,920
d. 39,720
Can you please indicate the...
Estimated variable manufacturing overhead $25 per machine hour Estimated fixed manufacturing overhead $67,100 Estimated machine-hours 6,100...
Estimated variable manufacturing overhead $25 per machine hour
Estimated fixed manufacturing overhead $67,100 Estimated
machine-hours 6,100 Actual manufacturing overhead $231,500 Actual
machine-hours 6,250 The estimates of the manufacturing overhead and
of machine-hours were made at the beginning of the year for the
purpose of computing the company's predetermined overhead rate for
the year. The applied manufacturing overhead for the year is:
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Charming Paper Company sells to the 12 accounts listed here. Account Receivable Balance Outstanding Average...
- Computer Networks IT 210 Please Use your own words . sorry No handwriting no copy paste...
- I would like to integrate a bubble sort into this binary search in c ++ Thank...
- Answer the bottom in 1-2 paragraphs Classical conditioning is a learned behavior where previously neutral response...
- identify one intrapersonal relationship and evaluate its component.
- Using Python in vs code: The distribution of letters in a document has a distinctive and...
- Why is De Beers exploring the diamond reselling market? How does the creation of IIDV affect...
ADVERTISEMENT