the Fixed overhead capacity variance is nearest to?? A. P4,710 F B. P4,710 U C. P5,110 F D. P5,110 U
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
the Fixed
A. P4,710 F
B. P4,710 U
C. P5,110 F
D. P5,110 U
Step by step
Solved in 6 steps
- A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000Lake Balboa Manufacturing Company decides to relate total factory overhead costs to direct labor hours (DLH) to develop a cost-volume formula in the form of y = a + bx. Observations from 2019 are collected. They are given and on the excel file. Month Direct Labor Hours Factory Overhead January 9,000 13,000 February 19,000 20,000 March 11,000 14,000 April 14,000 16,000 May 23,000 25,000 June 12,000 20,000 July 12,000 20,000 August 22,000 23,000 September 7,000 14,000 October 13,000 22,000 November 15,000 18,000 December 17,000 18,000 Total 174,000 hours $225,000 In October of 2020, the company used 13,000 direct labor hours. Using the cost formula for factory overhead calculated using the High-Low Method, calculate the factory overhead for October 2020.Buller Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2019:Budgeted manufacturing overhead costs Budgeted machine-hoursActual manufacturing overhead costs Actual machine-hoursRequired:$4,800,000 180,000 $3,990,000150,0001. Calculate the budgeted manufacturing overhead rate.2. Calculate the manufacturing overhead allocated during 2019.3. Calculate the amount of under- or overallocated manufacturing overhead. Whydo Buller’s managers need to calculate this amount?
- Swifty Corporation provide the information from its accounting records for 2019: Expected production 80000 labor hours, Actual production 76000 labor hours, Budgeted overhead 1500000, Actual overhead 1440000. How much is the overhead application rate if Swifty Corporation bases it on direct labor hours?Flandro Company uses a standard cost system and sets predetermined overhead rates on the basis of directlabor-hours. The following data are taken from the company’s budget for the current year:Denominator activity (direct labor-hours) ............... 5,000Variable manufacturing overhead cost .................. $25,000Fixed manufacturing overhead cost ...................... $59,000The standard cost card for the company’s only product is given below:Direct materials, 3 yards at $4.40 per yard ........................... $13.20Direct labor, 1 hour at $12 per hour ...................................... 12.00Manufacturing overhead, 140% of direct labor cost ............. 16.80Standard cost per unit .......................................................... $42.00During the year, the company produced 6,000 units of product and incurred the following costs:Materials purchased, 24,000 yards at $4.80 per yard ...... $115,200Materials used in production (in yards) .............................…Terrence Industries charges manufacturing overhead to products by using a predetermined application rate. computed on the basis of labor hours. The following data pertain to the current year: Budgeted manufacturing overhead Actual manufacturing overhead Budgeted labor hours Actual labor hours $2, 300,000 2,313,000 115, 000 116,750 Which of the following choices is the correct slalus of manufecturing overhead at year-end? Multiple Choice Overspplied by $13.000. Undereopled by $13,000. Overapplied by $22.000. Underappled by $22.000. Overapplied by $35.000.
- Flandro Company uses a standard cost system and sets predetermined overhead rates on the basis of directlabor-hours. The following data are taken from the company’s budget for the current year:Denominator activity (direct labor-hours) ............... 5,000Variable manufacturing overhead cost .................. $25,000Fixed manufacturing overhead cost ...................... $59,000The standard cost card for the company’s only product is given below:Direct materials, 3 yards at $4.40 per yard ........................... $13.20Direct labor, 1 hour at $12 per hour ...................................... 12.00Manufacturing overhead, 140% of direct labor cost ............. 16.80Standard cost per unit .......................................................... $42.00During the year, the company produced 6,000 units of product and incurred the following costs:Materials purchased, 24,000 yards at $4.80 per yard ...... $115,200Materials used in production (in yards) .............................…Terrence Industries charges manufacturing overhead to products by using a predetermined application rate. computed on the basis of labor hours. The following data pertain to the current year: Budgeted manufacturing overhead Actual manufacturing overhead Budgeted labor hours Actual labor hours $2,300, e00 2,313,e00 115, 000 116,750 Which of the following choices is the correct status of manufocturing overhead at year-end? Multiple Choice Overapplied by $13.00. Underappiled by $13,000. Overapplied by $22,000. Underepplied by $22.000. O Overapplied by $35,000.K Dakota Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Dakota allocates manufacturing overhead costs using direct manufacturing labor costs. Dakota provides the following information (Click the icon to view the information.) Read the requirements Requirement 1. Compute the actual and budgeted manufacturing overhead rates for 2020 (Enter your answer as a number [not as a percentage] rounded to two decimal places, XXX) Actual manufacturing overhead rate = 1.95 Budgeted manufacturing overhead rate 1.7 = Requirements BES 4 1. Compute the actual and budgeted manufacturing overhead rates for 2020 2. During March, the job-cost record for Job 626 contained the following information Direct materials used $55,000 Direct manufacturing labor costs $45,000 Compute the cost of Job 626 using (a) actual costing and (b) normal costing 3. At the end of 2020, compute the under- or…
- A company estimates its manufacturing overhead will be $630,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? When required, round your answers to nearest cent. A. Budgeted direct labor hours: 72,000 $______ per direct labor hour B. Budgeted direct labor expense: $1,800,000 $_____ per direct labor dollar C. Estimated machine hours: 120,000 $_____ per machine hourOriole Company provided the following information from its accounting records for 2019: Expected production 100000 labor hours Actual production 96000 labor hours Budgeted overhead $2100000 Actual overhead $1840000 How much is the overhead application rate if Oriole Company bases it on direct labor hours? $21.00 per hour $19.17 per hour $21.88 per hour $18.40 per hourOriole Company provided the following information from its accounting records for 2019. Expected production 100000 labor hours Actual production 96000 labor hours Budgeted overhead $900000 Actual overhead $860000 How much is the overhead application rate if Oriole Company bases the rate on direct labor hours? $9.00 per hour $9.38 per hour $8.96 per hour $8.60 per hour