Presented below is a flexible manufacturing overhead budget for Ayayai Manufacturing, which manufactures fine timepieces: ✓Activity Index:Standard direct labor hours2,8203,2203,6204,020Variable costsIndirect materials$5,640$6,440$7,240$ 8,040Indirect labor3,2433,7034,1634,623Utilities7,3328,3729,41210,452Total variable16,21518,51520,81523,115Fixed costsSupervisory salaries1,2101,2101,2101,210Rent2,8152,8152,8152,815Total fixed4,0254,0254,0254,025Total costs$ 20,240$ 22,540$ 24,840 $ 27,140The company applies the overhead on the basis of direct labor hours at $7.00 per direct labor hour and the standard hours pertimepiece is 1/2 hour each. The company's actual production was 5,440 timepieces with 2,720 actual hours of direct labor. Normalcapacity is 3,220 hours. Actual overhead was $20,400.(a)Compute the controllable and volume overhead variances. Identify whether each variance is favorable or unfavorable. (Roundrate values to 2 decimal places, e.g. 2.75 and final answers to O decimal places, e.g. 5,275.)Controllable Overhead VarianceOverhead Volume Variance$

Part 2: Explanation:Step 1: Calculate the standard overhead rate per direct labor hour:Standard…

Answered: Presented below is a flexible…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A manufacturer uses activity-based costing to assign overhead cost to products. Budgeted cost information for its activities follows. Budgeted Cost $ 210,600 Activity Cost Driver Purchase orders Square feet Budgeted Activity Usage 5,400 purchase orders 5,900 square feet 50 Setups Factory services 104,250 Setup 67,750 Setups Compute an activity rate for each activity. (Round your answers to 2 decimal places.) Activity Purchasing Activity Purchasing Factory services Setup Budgeted Cost 210,600 104,250 67,750 $ $ $ Budgeted Activity Usage Activity Rate
A manufacturer uses activity-based costing to assign overhead cost to products. Budgeted cost information for its activities follows. Activity Purchasing Factory services Setup Budgeted Cost $ 183,600 102,450 67,450 Activity Cost Driver Purchase orders. Square feet Setups Compute an activity rate for each activity. (Round your answers to 2 decimal places.) Budgeted Activity Usage 5,100 purchase orders. 5,600 square feet 50 Setups Activity Budgeted Cost Purchasing $ 183,600 Factory services $ 102,450 Setup $ 67,450 Budgeted Activity Usage Activity Rate
A company reports the following budgeted overhead costs and budgeted cost driver activity. Activity (Cost driver) Quality (number of units inspected) Factory services (square feet) Purchasing (number of orders) Activity Quality Factory services Purchasing Budgeted Cost $ 52,116 $ 123,216 $ 17,472 Use activity-based costing to compute the activity rate for each activity. Note: Round your "Activity Rate" to 2 decimal places. Budgeted Cost $ 52,116 123,216 17,472 Budgeted Activity of Cost Driver Standard Deluxe Total 3,180 860 3,820 2,220 188 228 Budgeted Activity Usage Activity Rate 4,040 6,040 416
A manufacturing company has a standard costing system based on standard direct labor-hours (DLHS) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator level of activity Overhead costs at the budgeted activity level: Variable overhead cost Fixed overhead cost The following data pertain to operations for the most recent period: Actual hours Standard hours allowed for the actual output Actual total variable manufacturing overhead cost Actual total fixed manufacturing overhead cost The fixed manufacturing overhead budget variance for the period is closest to: $900 F $930 U 6,400 DLHS $ 35,200 $ 70,400 6,600 DLHS 6,272 DLHS $38,400 $ 69,500 $900 U $1,150 F
Spree Party Lights overhead expenses are: Indirect material, pounds per unit Indirect material, cost per pound Indirect labor hours Indirect labor rate per hour Variable maintenance per unit Variable utilities per unit Supervisor salaries Maintenance salaries Insurance Depreciation Units to Produce Variable Costs Indirect Material Indirect Labor Maintenance Prepare a manufacturing overhead budget if the number of units to produce for January, February, and March are 2,400, 2,900, and 2,600, respectively. Spree Party Lights Manufacturing Overhead Budget For the Quarter Ending January - March January February Utilities Total Variable Manufacturing Costs Fixed Costs Supervisory Salaries Maintenance Salaries Insurance Depreciation 0.30 $2 1 Total Fixed Manufacturing Costs Total Manufacturing Overhead $16.00 $0.75 $0.20 $9,000 $8,000 $4,000 $1,400 March
A manufacturing company has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator level of activity 3,700 DLHs Overhead costs at the denominator activity level: Variable overhead cost $ 28,490 Fixed overhead cost $ 47,545 The following data pertain to operations for the most recent period: Actual hours 3,900 DLHs Standard hours allowed for the actual output 3,850 DLHs Actual total variable manufacturing overhead cost $ 29,445 Actual total fixed manufacturing overhead cost $ 47,995 The fixed manufacturing overhead budget variance for the period is closest to: $615 F $1,478 U $450 U $2,120 U
A manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHS) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Level of activity Overhead costs at the denominator activity level: Variable overhead cost 2,950 DLHS $ 9,400 $39,125 Fixed overhead cost 17 The following data pertain to operations for the most recent period: Actual hours Standard hours allowed for the actual output Actual total variable manufacturing overhead cost Actual total fixed manufacturing overhead cost 3,500 DLHS 2,637 DLHS $10,000 $39,525 What is the predetermined overhead rate to the nearest cent?
merica AS... arki Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Production (in units) Overhead Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Variable overhead Fixed overhead Total overhead Flexible Budget at 80% Capacity 53,250 1. Standard overhead rate 2. Standard overhead applied 3. Overhead variance $ 292,875 53,250 $ 346,125 Actual Results 49,200 $ 347,900 Saved Exercise 23-17 (Algo) Computing standard overhead rate and total overhead variance LO P4 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 26,625 DLH, computed as 53,250 units x 0.5 DLH per unit. 2. Compute the standard overhead applied. 3. Compute the total overhead variance. Note: Indicate the effect…
Landon is working on putting together the financials for his company's quarterly report. His company uses standard costs within its absorption costing system, and Landon needs to find the budgeted. cost per unit in order to estimate COGS. Landon has provided the following cost information. 2 3 41 15 16 17 18 Budgeted variable manufacturing cost per unit Budgeted variable operating cost per unit Budgeted fixed overhead costs Budgeted fixed operating costs Budgeted production in units $ D 5.00 3.00 30,000 20,000 5,000 E F G H functions with cell references to the Problem area or work area as indicated. How much cost should be capitalized to inventory for each unit produced? Cost per unit
A manufacturing company has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator level of activity 6,500 DLHs Overhead costs at the denominator activity level: Variable overhead cost $ 35,750 Fixed overhead cost $ 71,500 The following data pertain to operations for the most recent period: Actual hours 6,700 DLHs Standard hours allowed for the actual output 6,370 DLHs Actual total variable manufacturing overhead cost $ 39,000 Actual total fixed manufacturing overhead cost $ 70,560 The fixed manufacturing overhead budget variance for the period is closest to:
In July 2022, Thembi presented data in Table 3 for her cost center in budget costing: Table 3: Budget Costing Direct Material Cost Direct Labo Cost Machine hours Units Produced Direct Labor Hours Manufacturing factory overheads R 2 32 500.00 115 000.00 200 1 000 1 200 2 30 550.00 Using the information in Table 3, calculate the absorption/applied overhead rates: 4.1 Production unit method 4.2 Labor hours method 4.3 Machine hours method 4.4 Direct material cost method 4.5 Direct labor cost method 4.6 Primary (prime) cost method
< Deluxe, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Deluxe allocates manufacturing overhead to production based on standard direct labor hours. Deluxe reported the following actual results for 2024: actual number of units produced, 1,000, actual variable overhead, $5,000, actual fixed overhead, $3,200; actual direct labor hours, 1,400. Read the requirements Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours Print The fixed overhead cost variance is The fixed overhead volume variance is $2,100 $2,800 1,400 hours 700 units 2 hours per unit Done Requirements 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. 2. Explain why the variances are favorable or unfavorable irect labor hour was sed Print Done because the total fixed overhead cost was because…

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