Question
In: Accounting
Henton, Inc. budgeted $294,000 for overhead. Based on a normal activity level of 7,000 units and...
Henton, Inc. budgeted $294,000 for overhead. Based on a normal activity level of 7,000 units and a standard of 3 machine hours per unit, the standard fixed overhead allocation rate is $12 per machine hour. During the current period, 6,100 units were produced and 5,600 units were sold. Actual machine hours were 18,000, and actual overhead was $280,000. Assume variable overhead is allocated based on machine hours. a) Calculate the combined variable and fixed overhead variance, is it favorable or unfavorable? b) Calculate the variable overhead efficiency variance, is it favorable or unfavorable? c) Calculate the fixed overhead production volume variance, is it favorable or unfavorable?
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ekkarill92 answered 1 year agoRelated Solutions
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for...
Activity-Based Costing: Factory Overhead Costs
The total factory overhead for Bardot Marine Company is budgeted
for the year at $1,112,000, divided into four activities:
fabrication, $576,000; assembly, $224,000; setup, $168,000; and
inspection, $144,000. Bardot Marine manufactures two types of
boats: speedboats and bass boats. The activity-base usage
quantities for each product by each activity are as follows:
Fabrication
Assembly
Setup
Inspection
Speedboat
8,000
dlh
24,000
dlh
58
setups
100
inspections
Bass boat
24,000
8,000
422
700
32,000
dlh
32,000
dlh...
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for...
Activity-Based Costing: Factory Overhead Costs The total factory
overhead for Bardot Marine Company is budgeted for the year at
$930,200, divided into four activities: fabrication, $420,000;
assembly, $156,000; setup, $193,200; and inspection, $161,000.
Bardot Marine manufactures two types of boats: speedboats and bass
boats. The activity-base usage quantities for each product by each
activity are as follows: Fabrication Assembly Setup Inspection
Speedboat 7,000 dlh 19,500 dlh 50 setups 88 inspections Bass boat
21,000 6,500 370 612 28,000 dlh 26,000 dlh...
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for...
Activity-Based Costing: Factory Overhead Costs
The total factory overhead for Bardot Marine Company is budgeted
for the year at $726,000, divided into four activity pools:
fabrication,, $352,000; assembly, $132,000; setup, $132,000; and
inspection, $110,000. Bardot Marine manufactures two types of
boats: speedboats and bass boats. The activity-base usage
quantities for each product by each activity are as follows:
Fabrication
Assembly
Setup
Inspection
Speedboat
5,500
dlh
16,500
dlh
40
setups
69
inspections
Bass boat
16,500
5,500
290
481
22,000
dlh
22,000...
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for...
Activity-Based Costing: Factory Overhead Costs
The total factory overhead for Bardot Marine Company is budgeted
for the year at $1,314,700, divided into four activities:
fabrication, $492,000; assembly, $220,000; setup, $325,950; and
inspection, $276,750. Bardot Marine manufactures two types of
boats: speedboats and bass boats. The activity-base usage
quantities for each product by each activity are as follows:
Fabrication
Assembly
Setup
Inspection
Speedboat
10,250
dlh
33,000
dlh
74
setups
128
inspections
Bass boat
30,750
11,000
541
897
41,000
dlh
44,000
dlh...
1.In the predetermined factory overhead rate the budgeted activity units used in the denominator or formula...
1.In the predetermined factory overhead rate the budgeted
activity units used in the denominator or formula known as cost
driver are measured in all the following except: Select one: a.
direct labor hours b. machine hours c. direct labor costs d.
indirect labor costs e. production units
2.Activity-based costs include the following steps except:
Select one: a. identify activities that consume resources b.
identify the cost drivers associated with each activity or activity
pool c. calculate an applied rate for...
Puget Sound Manufacturing uses normal costing and allocates manufacturing overhead to jobs based on a budgeted...
Puget Sound Manufacturing uses normal costing and allocates
manufacturing overhead to jobs based on a budgeted direct
labor-hour rate for the actual direct labor hours. Any
overallocated or underallocated overhead is written-off to the cost
of goods sold at the end of the month. During April 2019, Puget
Sound Manufacturing recorded the following:
Budgeted manufacturing overhead costs:
$400,000
Budgeted direct labor-hours:
20,000 DLHRS
Budgeted machine hours:
16,000 MHRS
Actual manufacturing overhead costs:
$360,000
Actual direct labor-hours:
22,500 DLHRS
Actual machine...
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?
Wellington Chocolate Company uses activity-based costing. The controller identified two activities and budgeted overhead costs based...
Wellington Chocolate Company uses activity-based costing. The
controller identified two activities and budgeted overhead costs
based on these activities:
Setting up equipment $280,000
Baking $5,800,000
Setting up equipment is based on setup hours, and baking is
based on oven hours. Wellington produces two products, fudge, and
cookies. Information on each product is as follows
fudge
cookies
Units produced
8,000
445,000
Setup hours
4,000
1,000
Oven hours
5,000
35,000
Required (round your answers to the nearest whole dollar, unless
otherwise directed):...
Overhead Application, Activity-Based Costing, Bid Prices Firenza Company manufactures specialty tools to customer order. Budgeted overhead...
Overhead Application,
Activity-Based Costing, Bid Prices
Firenza Company
manufactures specialty tools to customer order. Budgeted overhead
for the coming year is:
Purchasing
$35,000
Setups
40,000
Engineering
45,000
Other
40,000
Previously, Sanjay
Bhatt, Firenza Company's controller, had applied overhead on the
basis of machine hours. Expected machine hours for the coming year
are 50,000. Sanjay has been reading about activity-based costing,
and he wonders whether or not it might offer some advantages to his
company. He decided that appropriate drivers for...
Company budgeted sales in units for the next four months as follows: July 7,000 units August...
Company budgeted sales in units for the next four months as
follows:
July
7,000 units
August
5,000 units
September
6,500 units
1. Prepare the sales budget for the
company knowing that each unit is sold for $50. (1 pt)
2. Past experience has shown that the
ending inventory for each month should be equal to 20% of the next
month's sales in units. The inventory in the beginning of July was
only 1,000 units, & the inventory on September 30...
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