Question
In: Accounting
Last year, ABC Company produced 19,000 units of Product X. The fixed overhead budget was $160,000...
Last year, ABC Company produced 19,000 units of Product X. The fixed overhead budget was $160,000 and the expected level of production for the year was 20,000 units. The actual fixed overhead costs were $162,000.
Required: Be sure to label each variance as F – favorable or U – unfavorable.
1. What is the predetermined fixed overhead rate for the year?
2. What was the fixed overhead budget or spending variance?
3. What is the fixed overhead volume variance?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
QUESTION 2 Company ABC produces a single product. This year the company produced 20,000 units but...
QUESTION 2
Company ABC produces a single product. This year the company
produced 20,000 units but only sold 15,000 units at the price of
$40 each. Variable manufacturing costs (including direct materials,
director labor, and variable manufacturing overhead) total $10 per
unit. Variable selling and administrative cost is $5 per unit.
Fixed manufacturing overhead cost is $100,000 each year. Fixed
selling and administrative cost is $80,000 each year. There is no
inventory at the beginning of this year.
Required: (Please...
Company ABC produces a single product. This year the company produced 20,000 units but only sold...
Company ABC produces a single product. This year the company
produced 20,000 units but only sold 15,000 units at the price of
$40 each. Variable manufacturing costs (including direct materials,
director labor, and variable manufacturing overhead) total $10 per
unit. Variable selling and administrative cost is $5 per unit.
Fixed manufacturing overhead cost is $100,000 each year. Fixed
selling and administrative cost is $120,000 each year. There is no
inventory at the beginning of this year.
What is the net...
Company ABC produces a single product. This year the company produced 20,000 units but only sold...
Company ABC produces a single product. This year the company
produced 20,000 units but only sold 15,000 units at the price of
$40 each. Variable manufacturing costs (including direct materials,
director labor, and variable manufacturing overhead) total $10 per
unit. Variable selling and administrative cost is $5 per unit.
Fixed manufacturing overhead cost is $100,000 each year. Fixed
selling and administrative cost is $120,000 each year. There is no
inventory at the beginning of this year.
What is the net...
Company ABC produces a single product. This year the company produced 20,000 units but only sold...
Company ABC produces a single product. This year the company
produced 20,000 units but only sold 15,000 units at the price of
$40 each. Variable manufacturing costs (including direct materials,
director labor, and variable manufacturing overhead) total $10 per
unit. Variable selling and administrative cost is $5 per unit.
Fixed manufacturing overhead cost is $100,000 each year. Fixed
selling and administrative cost is $100,000 each year. There is no
inventory at the beginning of this year. Required -
What is...
A company produces a single product. Last year, fixed manufacturing overhead was $30,000 in total. Variable...
A company produces a single product. Last year, fixed
manufacturing overhead was $30,000 in total. Variable production
costs were $16 per unit. Fixed selling and administrative costs
were $20,000 in total. Variable selling and administrative costs
were $4 per unit. There was no beginning inventory. During the
year, 3,000 were produced and 2,400 units were sold at a price of
$40 per unit. What would be the ending finished goods inventory
balance when using absorption costing?
$15,600 $9,600 $0 $12,000
During 2021, its first year of operations, XYZ Company produced 25,000 units and sold 19,000 units....
During 2021, its first year of operations, XYZ Company produced
25,000 units and sold 19,000 units. During 2022, XYZ Company
produced 30,000 units and sold 32,000 units. The following
information was taken from XYZ's accounting records for 2021 and
2022: 2021 2022 Direct materials cost per unit ............ $18 $17
Direct labor cost per unit ................ $16 $21 Variable
overhead cost per unit ........... $7 $9 Variable selling &
admin cost per unit .... $4 $6 Fixed overhead (total cost)...
During 2021, its first year of operations, XYZ Company produced 25,000 units and sold 19,000 units....
During 2021, its first year of operations, XYZ Company produced
25,000 units and sold 19,000 units. During 2022, XYZ Company
produced 30,000 units and sold 32,000 units. The following
information was taken from XYZ's accounting records for 2021 and
2022: 2021 2022 Direct materials cost per unit ............ $18 $17
Direct labor cost per unit ................ $16 $21 Variable
overhead cost per unit ........... $7 $9 Variable selling &
admin cost per unit .... $4 $6 Fixed overhead (total cost)...
During 2021, its first year of operations, XYZ Company produced 25,000 units and sold 19,000 units....
During 2021, its first year of operations, XYZ Company produced 25,000
units and sold 19,000 units. During 2022, XYZ Company produced 30,000
units and sold 32,000 units. The following information was taken from
XYZ's accounting records for 2021 and 2022:
2021 2022
Direct materials cost per unit ............ $18 $17
Direct labor cost per unit ................ $16 $21
Variable overhead cost per unit ........... $7 $9
Variable selling & admin cost per unit .... $4 $6
Fixed overhead (total cost)...
During 2021, its first year of operations, XYZ Company produced 25,000 units and sold 19,000 units....
During 2021, its first year of operations, XYZ Company produced 25,000
units and sold 19,000 units. During 2022, XYZ Company produced 30,000
units and sold 32,000 units. The following information was taken from
XYZ's accounting records for 2021 and 2022:
2021 2022
Direct materials cost per unit ............ $18 $17
Direct labor cost per unit ................ $16 $21
Variable overhead cost per unit ........... $7 $9
Variable selling & admin cost per unit .... $4 $6
Fixed overhead (total cost)...
ABC Inc. produces a single product and manufactured 20,000 units last year. The company budgeted the...
ABC Inc. produces a single product and manufactured 20,000 units
last
year. The company budgeted the following overhead costs for the
year:
Indirect Factory Wages:$100,000Factory Utilities:$ 40,000Factory
Depreciation:$ 60,000
Direct manufacturing costs per unit are $50. The company uses an
activity-based costing system which compiles costs into 3 cost
pools, machining, milling and assembly. The costs allocated to
these activity cost pools break down as follows:
Usage:
Cost:MachiningMillingAssemblyIndirect Factory
Wages:50%30%20%Factory Utilities:40%40%20%Factory
Depreciation:10%90%0%
The following cost drivers are used for each...
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