I need to calculate the variable costs, DLH, Fixed costs and the manufacturing overhead rate per...

I need to calculate the variable costs, DLH, Fixed costs and the manufacturing overhead rate per direct labor hour for each quarter and year-end. I've done some calculation but I believe I am missing something in the variable costs calculations with the indirect materials, indirect labor hours and maintenance. I have been multiplying the indirect costs by DLH, but some of my instructions indicate I am supposed to divide it. Not sure if I am misinterpreting or just missing a calculation altogether.

Wells Company is preparing its Master Budget for 2016 and Evan has asked you to create the Manufacturing Overhead Budget for the Sporting Goods Division. Once you have reviewed the Project resources and the below data, prepare the Manufacturing Overhead Budget for 2017, showing quarterly data. Be sure to properly express each figure in terms of units, dollars or direct labor hours (DLH).

Sporting Goods Units to be produced (by Quarter):

Q1: 70,000

Q2: 60,000

Q3: 50,000

Q4: 80,000

Direct labor: 1 hour of direct labor is required to produce one unit

Variable overhead costs per direct labor hour:

Indirect materials	$0.80
Indirect labor	$1.20
Maintenance	$0.50

Fixed overhead costs per Quarter:

Supervisory salaries	$42,000
Depreciation	$16,000
Maintenance	$12,000

Expert Solution

Indirect materials ($.80/DLH ) it means $.80 per DLH

ACME SPORTING GOODS DIVISION
MANUFACTURING OVERHEAD BUDGET
FOR THE YEAR ENDED DECEMBER 31, 2016
	Q1	Q2	Q3	Q4	Total
DIRECT LABOR HOURS(DLH)	70,000	60,000	50,000	80,000	260,000
VARIABLE COSTS:
Indirect materials ($.80/DLH) ; ($.80 x DLH)	$56,000.00	$48,000.00	$40,000.00	$64,000.00	$208,000.00
Indirect labor ($1.20/DLH); /($1.20 x DLH)	$84,000.00	$72,000.00	$60,000.00	$96,000.00	$312,000.00
Maintenance($.50/DLH);($.50 x DLH)	$35,000.00	$30,000.00	$25,000.00	$40,000.00	$130,000.00
TOTAL VARIABLE COSTS	$175,000.00	$150,000.00	$125,000.00	$200,000.00	$650,000.00

FIXED COSTS
Supervisory salaries	$42,000.00	$42,000.00	$42,000.00	$42,000.00	$168,000.00
Depreciation	$16,000.00	$16,000.00	$16,000.00	$16,000.00	$64,000.00
Maintenance	$12,000.00	$12,000.00	$12,000.00	$12,000.00	$48,000.00
TOTAL FIXED COSTS	$70,000.00	$70,000.00	$70,000.00	$70,000.00	$280,000.00
MANUFACTURING OVERHEAD (MO)	$245,000.00	$220,000.00	$195,000.00	$270,000.00	$930,000.00
MANUFACTURING OVERHEAD RATE PER DIRECT LABOR HOUR (MO/DLH) = $930,000/260,000					$3.58

ekkarill92 answered 2 years ago

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

All of the company's manufacturing overhead costs are fixed—it does not incur any variable manufacturing overhead...

All of the company's manufacturing overhead costs are fixed—it does not incur any variable manufacturing overhead costs. The predetermined overhead rate is based on a cost formula that estimated $2,882,000 of fixed manufacturing overhead for an estimated allocation base of 288,200 direct labor-hours. Wallis does not maintain any beginning or ending work in process inventory.The company’s beginning balance sheet is as follows: Wallis Company Balance Sheet 1/1/XX (dollars in thousands) Assets Cash $ 720 Raw materials inventory 170 Finished goods...

Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $37 per unit, and variable manufacturing costs are...

Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $37 per unit, and variable manufacturing costs are $111 per unit. Production was 91,000 units, while sales were 86,450 units. a. Determine whether variable costing income from operations is less than or greater than absorption costing income from operations. b. Determine the difference in variable costing and absorption costing income from operations. $

If variable manufacturing costs are $8 per unit and total fixed manufacturing costs are $454,300, what...

If variable manufacturing costs are $8 per unit and total fixed manufacturing costs are $454,300, what is the manufacturing cost per unit if: a. 5,900 units are manufactured and the company uses the variable costing concept? $ b. 7,700 units are manufactured and the company uses the variable costing concept? $ c. 5,900 units are manufactured and the company uses the absorption costing concept? $ d. 7,700 units are manufactured and the company uses the absorption costing concept? $

If variable manufacturing costs are $8 per unit and total fixed manufacturing costs are $444,000, what...

If variable manufacturing costs are $8 per unit and total fixed manufacturing costs are $444,000, what is the manufacturing cost per unit if a. 6,000 units are manufactured and the company uses the variable costing concept? $ b. 7,400 units are manufactured and the company uses the variable costing concept? $ c. 6,000 units are manufactured and the company uses the absorption costing concept? $ d. 7,400 units are manufactured and the company used the absorption costing concept?

If variable manufacturing costs are $10 per unit and total fixed manufacturing costs are $325,000, what...

If variable manufacturing costs are $10 per unit and total fixed manufacturing costs are $325,000, what is the manufacturing cost per unit if a. 5,000 units are manufactured and the company uses the variable costing concept? $ b. 6,500 units are manufactured and the company uses the variable costing concept? $ c. 5,000 units are manufactured and the company uses the absorption costing concept? $ d. 6,500 units are manufactured and the company used the absorption costing concept? $

Variable manufacturing costs are $103 per unit, and fixed manufacturing costs are $162,000. Sales are estimated...

Variable manufacturing costs are $103 per unit, and fixed manufacturing costs are $162,000. Sales are estimated to be 7,500 units. If an amount is zero, enter "0". Do not round interim calculations. Round final answer to nearest whole dollar. a. How much would absorption costing income from operations differ between a plan to produce 7,500 units and a plan to produce 9,000 units? $ b. How much would variable costing income from operations differ between the two production plans? $

Variable manufacturing costs are $108 per unit, and fixed manufacturing costs are $53,200. Sales are estimated...

Variable manufacturing costs are $108 per unit, and fixed manufacturing costs are $53,200. Sales are estimated to be 5,300 units. If an amount is zero, enter "0". Do not round interim calculations. Round final answer to nearest whole dollar. a. How much would absorption costing income from operations differ between a plan to produce 5,300 units and a plan to produce 7,600 units?

Norwall Company's variable manufacturing overhead should be $1.30 per standard machine-hour and its fixed manufacturing overhead...

Norwall Company's variable manufacturing overhead should be $1.30 per standard machine-hour and its fixed manufacturing overhead should be $30,368 per month. The following information is available for a recent month: The denominator activity of 8,320 machine-hours is used to compute the predetermined overhead rate. At the 8,320 standard machine-hours level of activity, the company should produce 3,200 units of product. The company’s actual operating results were: Number of units produced 3,690 Actual machine-hours 9,700 Actual variable manufacturing overhead cost $...

Norwall Company's variable manufacturing overhead should be $1.90 per standard machine-hour and its fixed manufacturing overhead...

Norwall Company's variable manufacturing overhead should be $1.90 per standard machine-hour and its fixed manufacturing overhead should be $34,440 per month. The following information is available for a recent month: a. The denominator activity of 17,220 machine-hours is used to compute the predetermined overhead rate. b. At the 17,220 standard machine-hours level of activity, the company should produce 8,200 units of product. c. The company’s actual operating results were: Number of units produced 8,940 Actual machine-hours 18,690 Actual variable manufacturing...

Question