For the upcoming year You budget the following 5280000 pounds of material at a cost of $31680000 12 million hours of direct labor at a cost of $300 millions 7200000 hours of machine time at a cost of $14400000 Fixed Overhead $240 Million Actual Budget 2300000 units produced. 5014000 pounds at a cost of $30284560 11546000 Direct labor hours at cost of $288303620 6854000 hours of machine time at a cost of $13913620 Fixed Overhead $235 Million I Required 1. Calculate your standards. 2. Perform and calculate your efficiency, Rate (Price) and total Variances for Direct Material, Direct Labor, Variances overhead, FOH 3. Make your Journal entries to close out all the variances.

For the upcoming year You budget the following 5280000 pounds of material at a cost of $31680000 12 million hours of direct labor at a cost of $300 millions 7200000 hours of machine time at a cost of $14400000 Fixed Overhead $240 Million Actual Budget 2300000 units produced. 5014000 pounds at a cost of $30284560 11546000 Direct labor hours at cost of $288303620 6854000 hours of machine time at a cost of $13913620 Fixed Overhead $235 Million I Required 1. Calculate your standards. 2. Perform and calculate your efficiency, Rate (Price) and total Variances for Direct Material, Direct Labor, Variances overhead, FOH 3. Make your Journal entries to close out all the variances.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 9E: Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost...

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The master budget of Sheridan Company shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labor $720000 Machine supplies 180000 Indirect materials 150000 Depreciation on factory building 90000 Total manufacturing overhead $1140000 A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of a. $1278000. b. $1350000. c. $1368000. d. $1140000.
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