Question

In: Accounting

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?

Solutions

Expert Solution


Related Solutions

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...
Tucson Co. uses a normal costing system. Factory (or Manufacturing) overhead is applied at a budgeted...
Tucson Co. uses a normal costing system. Factory (or Manufacturing) overhead is applied at a budgeted rate based on direct labor cost. At the end of the period, there are two unfinished jobs. Additional information is available as follows:                   Direct materials used                             $ 50,000                   Direct labor costs                                   $100,000                   Beginning Work-in-process inventory $100,000                   Cost of goods manufactured                  $150,000                   Beginning Finished goods inventory     $140,000                     Ending Finished goods inventory          $110,000                   Actual factory overhead incurred...
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...
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...
(Predetermined overhead rates) Knox corp. is budgeted to spend $80,000 on manufacturing overhead in 2016. What...
(Predetermined overhead rates) Knox corp. is budgeted to spend $80,000 on manufacturing overhead in 2016. What would be the predetermined overhead rate if it based the computation on: A. Budgeted direct labor hours of 60,000? B. Budgeted machine hours of 160,000? C. Budgeted direct materials costs of $480,000?
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...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.10 Indirect materials 0.50 Utilities 0.40 Fixed overhead costs per month are Supervision $3,900, Depreciation $1,100, and Property Taxes $700. The company believes it will normally operate in a range of 5,900–9,800 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Variable Costs Fixed...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.20 Indirect materials 0.80 Utilities 0.40 Fixed overhead costs per month are Supervision $3,600, Depreciation $1,000, and Property Taxes $900. The company believes it will normally operate in a range of 8,000–13,700 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Variable Costs Fixed...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT