Question
In: Accounting
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted...
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2019:
| Denominator volume—number of units | 7,000 | ||
| Denominator volume—percent of capacity | 70 | % | |
| Denominator volume—standard direct labor hours (DLHs) | 35,000 | ||
| Budgeted variable factory overhead cost at denominator volume | $ | 102,700 | |
| Total standard factory overhead rate per DLH | $ | 15.10 | |
During 2019, Bluecap worked 44,000 DLHs and manufactured 9,000
units. The actual factory overhead cost for the year was $15,000
greater than the flexible budget amount for the units produced, of
which $5,000 was due to fixed factory overhead. In preparing a
budget for 2020 Bluecap decided to raise the level of operation to
90% of capacity (a level it considers to be "practical capacity"),
to manufacture 8,400 units at a budgeted total of 25,200
DLHs.
The variable overhead spending variance in 2019 for
Bluecap Co. (to the nearest whole dollar) was: (Round your
intermediate calculation to 2 decimal places.)
Multiple Choice
-
$9,490 unfavorable.
-
$5,000 unfavorable.
-
$12,930 unfavorable.
-
$17,930 unfavorable.
-
$10,690 favorable.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted...
Bluecap Co. uses a standard cost system and flexible budgets for
control purposes. The following budgeted information pertains to
2019:
Denominator volume—number of
units
9,000
Denominator volume—percent of
capacity
90
%
Denominator volume—standard
direct labor hours (DLHs)
27,000
Budgeted variable factory
overhead cost at denominator volume
$
103,700
Total standard factory overhead
rate per DLH
$
15.10
During 2019, Bluecap worked 26,000 DLHs and manufactured 9,100
units. The actual factory overhead cost for the year was $13,000
greater than the...
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted...
Bluecap Co. uses a standard cost system and flexible budgets for
control purposes. The following budgeted information pertains to
2016:
Denominator volume-number of units
8,000
Denominator volume-percent of capacity
80%
Denominator volume-standard direct labor hours
24,000
Budgeted variable factory overhead cost at the denominator
volume
$103,200
Total standard factory overhead rate per direct labor hour
$15.10
During 2016, Bluecap worked 28,000 direct labor hours and
manufactured 9,600 units. The actual factory overhead was $14,000
greater than the flexible budget amount...
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted...
Bluecap Co. uses a standard cost system and flexible budgets for
control purposes. The following budgeted information pertains to
2019: Denominator volume—number of units 8,000 Denominator
volume—percent of capacity 80%Denominator volume—standard direct
labor hours (DLHs) 24,000 Budgeted variable factory overhead cost
at denominator volume$103,200 Total standard factory overhead rate
per DLH$15.10 During 2019, Bluecap worked 28,000 DLHs and
manufactured 9,600 units. The actual factory overhead cost for the
year was $14,000 greater than the flexible budget amount for the
units...
Robinson Corporation manufactures embroidered jackets. The company prepares flexible budgets and uses a standard cost system...
Robinson Corporation manufactures embroidered jackets. The
company prepares flexible budgets and uses a standard cost system
to control manufacturing costs. The following standard unit cost of
a jacket is based on the static budget volume of 15,000 jackets per
month.
Direct materials (3.0 sq. ft x $5.00 per sq. ft.)
$15.00 Direct labor (2 hours x $12.00 per hour) 24.00
Manufacturing overhead:
-Variable (2 hours x @$1.00 per hour) $2.00
-Fixed (2 hours x $3.00 per hour) 6.00
Total cost...
Jordan Corporation Inc. manufactures a single product and uses a standard cost system for control purposes....
Jordan Corporation Inc. manufactures a single product and uses a
standard cost system for control purposes. The standard cost card
for the product is as follows:
Standard Cost Standard Cost Per Unit ($) Direct materials 2 metres
@ $8.45 per metre $16.90 Direct labour 1.4 hours @ $16 per DLH
22.40 Variable overhead 1.4 hours @ $2.50 per DLH 3.50 Fixed
overhead 1.4 hours @ $6 per DLH 8.40 Total cost $51.20 * DLH -
Direct labour hours
Some additional...
Marigold Corp. uses flexible budgets. At normal capacity of 7000 units, budgeted manufacturing overhead is: $21000...
Marigold Corp. uses flexible budgets. At normal capacity of 7000
units, budgeted manufacturing overhead is: $21000 variable and
$270000 fixed. If Marigold Corp. had actual overhead costs of
$295200 for 9000 units produced, what is the difference between
actual and budgeted costs?
Problem 2 Speed Control Inc. Manufactures carburetors and uses a standard cost system. The standard factory...
Problem 2 Speed Control Inc. Manufactures carburetors and
uses a standard cost system.
The
standard factory overhead costs per carburetor are based on machine
hours and are as follows:
Variable overhead (3 hours at $4/hour)
$12
Fixed overhead (3 hours at $5/hour**)
15
Total overhead cost per unit
27
**Based on
an expectation of 12,000 carburetors per month.
The
following additional information is available for the month of
December:
10,000 carburetor s were produced although 12,000 had been
scheduled for...
Elements of a Flexible Budgets Presented are partial flexible cost budgets for various levels of output....
Elements of a Flexible Budgets
Presented are partial flexible cost budgets for various levels of
output.
Required
Solve for items "a" though "n"
Rate per unit
Units
5,000
7,500
10,000
Direct materials
a. $Answer
$50,000
b. $Answer
c. $Answer
Direct labor
d. $Answer
e. Answer
15,000
f. Answer
Variable overhead
$3.00
g. Answer
h. Answer
i. Answer
Fixed overhead
j. Answer
k. Answer
l. Answer
Total
m. $Answer
n. $Answer
$200,000
Milberg Co. uses absorption costing and standard costing to improve cost control. In 2016, the total...
Milberg Co. uses absorption costing and standard costing to
improve cost control.
In 2016, the total budgeted overhead rate was $1.55 per direct
labour hour. When preparing the budget, Milberg expected a monthly
activity level of 10,000 direct labour hours. The monthly variable
overhead cost budgeted for this level of activity was $9,500.
The following data on actual results are provided for the month
of November 2016.
Materials purchased
20,000 units
Direct labour costs incurred
$36,000
Total of direct labour...
McKnight Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. McKnight allocates...
McKnight Recliners manufactures leather recliners and uses
flexible budgeting and a standard cost system. McKnight allocates
overhead based on yards of direct materials. The? company's
performance report includes the following selected? data:
Static Budget
Actual Results
(1,000 recliners)
(980 recliners)
Sales
(1,000 recliners x
$500
each)
$500,000
(980 recliners x
$475
each)
$465,500
Variable Manufacturing Costs:
Direct Materials
(6,000 yds. @
$8.50
/ yd.)
51,000
(6,143 yds. @
$8.30
/ yd.)
50,987
Direct Labor
(10,000 DLHr @
$9.30
/ DLHr)...
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