Please help me Question 9Amewovi Ltd manufactures towels. It plans to produce 10,000 pieces of towels for the periodending December 2019. The standard fixed overhead cost for the manufacture of towels willtherefore be as follows:8hours at C3 per hour = C24 per unit and budgeted fixed overheard isC 60,000%3D Actual fixed overhead expenditure in for the same period is C70,000. The labour force managesto produce 5,800 packets of tooth pick in 16,000 hours of work.Calculate the following variances.(i)(ii)The Fixed overhead Expenditure varianceThe Fixed overhead Volume variance

The fixed overhead expenditure variance = Budgeted overhead - Actual overhead If the budgeted…

Actual fixed overhead expenditure in for the same period is C70,000. The labour force manages to produce 5,800 packets of tooth pick in 16,000 hours of work. Calculate the following variances. (i) (ii) The Fixed overhead Expenditure variance The Fixed overhead Volume variance

Actual fixed overhead expenditure in for the same period is C70,000. The labour force manages to produce 5,800 packets of tooth pick in 16,000 hours of work. Calculate the following variances. (i) (ii) The Fixed overhead Expenditure variance The Fixed overhead Volume variance

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter16: Job Order Costing

Section: Chapter Questions

Problem 4CMA: Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and...

See similar textbooks

Related questions

Q: Bellingham Company produced 15,000 units of product that required 4 standard direct labor hours per…

A: Fixed Overhead volume variance = Budgeted Fixed Overhead - Absorbed/Applied Fixed overhead where,…

Q: Formidable Company collected the following information: Standard costs per unit: Variable…

A: Total Variance It is important in the calculation of the variance of the cost which is helpful to…

Q: Western Co. has total budgeted fixed costs of $72,000. Actual production of 5,500 units resulted in…

A: Fixed overhead volume variance = (Budgeted units - Actual units) x Fixed overhead rate Fixed…

Q: The following information was obtained from KMG Manufacturing Company. Standard Data: Direct…

A: Standards are set in advance. From the standards, actual performance is measured so as to find the…

Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…

A: SOLUTION- GIVEN, VARIABLE OVERHEAD RATE = $2 FIXED OVERHEAD RATE = $10 NORMAL LEVEL OF PRODUCTION =…

Q: The following information is available for Sheffield’s Hot Dogs: Actual production 11,820…

A: Calculate the actual overhead rate as follows: Calculate standard hours and actual hours worked as…

Q: Shaw Company produced 730 units, Its overhead allocation base is DLH and its standard amount per…

A: A volume variance can be defined as the difference between the total actual overhead costs and the…

Q: I need helo solving this problem

A: Calculate the direct labor rate, efficiency, and spending variances.

Q: Stanford Company makes a single product and uses standard costing. Some data concerning this product…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Adams Company established a predetermined variable overhead cost rate at S10.00 per direct labor…

A: Formula: Variable overhead cost variance = Actual hours x ( standard - actual cost )

Q: The following information is available for Marigold’s Hot Dogs: Actual production 11,760 packages…

A: Standard costing is used to compare the budgeted data with the actual results for better managerial…

Q: Frontera Company’s output for the current period results in a $20,000 unfavorable direct labor rate…

A: Labour cost variance: The difference between the standard cost of labour estimated and the actual…

Q: Misterio Company uses a standard costing system. During the past quarter, the following variances…

A: Solution: Let standard hours = X Actual hours = X*130% = 1.30X Variable overhead efficiency variance…

Q: Misterio Company uses a standard costing system. During the past quarter, the following variances…

A: Variable overhead efficiency variance = Standard rate x (Standard Hours - Actual Hours)

Q: Big Dog Company, a manufacturer of dog food, produces its product in 1,000-bag batches. The standard…

A: >Variances refer to the difference between Standard Cost allowed and Actual Cost incurred.…

Q: What is the amount of the Factory OH Controllable Variance, given the following info: Actual…

A: Controllable Variance = Actual factory overhead – Standard overhead where, Standard overhead =…

Q: Misterio Company uses a standard costing system. During the past quarter, the following variances…

A: Excess hours than allowed = Unfavorable Variable overhead efficiency variance / variable overhead…

Q: Misterio Company uses a standard costing system. During the past quarter, the following variances…

A: Let standard labor hours = X Actual labor hours = (1 + 0.30)X = 1.3X Variable overhead efficiency…

Q: Crystal Glassware Company has the following standards and flexible-budget data. 8.00 per…

A: Variance:- It means the difference between the actual and the standard, company compare actual…

Q: The following information is available for Bonita’s Hot Dogs: Actual production 11,090 packages…

A: Working Notes: 1. Standard variable overhead rate = $4 2. Actual variable overhead costs =$ 53,090…

Q: Normal annual capacity for ABC Company is 72,000 units, with fixed factory overhead budgeted at P…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…

A: In budgeting as well as management accounting, variance analysis seems to be the examination of…

Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Shaw Company produced 860 units. Its overhead allocation base is DLH and its standard amount per…

A: Volume variance is the formula used in comparing the actual overheads with the standard set by the…

Q: Standard and actual costs for direct labor for the manufacture of 1,000 units of product were as…

A: Introduction: Variance analysis is the quantitative examination of the difference between actual and…

Q: The standard number of hours that should have been worked for the output attained is 10,000 direct…

A: Direct labor rate variance = Actual hours ×[Actual rate - standard rate]

Q: What is the amount of the Factory OH Volume Variance, given the following info: Actual production =…

A: Factory Overhead Volume Variance = Applied Fixed Overheads - Budgeted Fixed Overheads

Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…

A: Variance analysis is an examination used to perceive the distinction between real conduct and…

Q: What is the direct labor (a) rate variance, (b) time variance, and (c) total cost variance? (d)…

A: “Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want…

Q: Beverly Company has determined a standard variable overhead rate of $3.40 per direct labor hour and…

Q: Adams Company established a predetermined variable overhead cost rate at S10.00 per direct labor…

A: Formula: Variable overhead cost variance = ( Standard cost - Actual cost ) x Actual hours

Q: Beverly Company has determined a standard variable overhead rate of $4.00 per direct labor hour and…

A: Applied overhead = No. of units produced x labor hour per unit x variable overhead rate = 3,500…

Q: Feagin Company’s actual variable overhead was $73,000. Actual direct labor hours were…

A: Formulas: Variable overhead spending variance = (standard variable overhead rate - actual variable…

Q: I am struggling to solve this problem

A: Meaning of Fixed Overhead Spending Variance:Fixed Overhead spending variance is also known as fixed…

Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…

A: Lets start with understanding of various variances asked in the question, Material price variance:-…

Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…

A: Following are the requisite Variances

Q: In Zinchin Ind where Standard Costing is followed, the budgeted fixed overheads for a budgeted…

A: Standard costing is an method used to identify variances between actual and budgeted figures, in…

Q: Determine the (a) volume variance, (b) controllable variance, and (c) total factory overhead cost…

A: Solution:- Given, The standard factory overhead rate = $12 per machine hour…

Q: eger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…

A: Overhead Volume Variance: The overhead volume variance indicates the cost of capacity available…

Q: ThingOne Company has the following information available for the past year. They use machine hours…

Q: he data below relate to the month of November for Badong, Inc. which uses a standard cost system:…

A: A standard costing system is a tool used in accounting to create budgets, manage and control…

Q: Misterio Company uses a standard costing system. During the past quarter, the following variances…

A: Solution: Let standard direct labor hours = X Actual labor hours used = X*130% = 1.30 X Variable…

Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…

A: Given, Variable Overhead Rate = $2 Fixed Overhead Rate = $10 Normal level of production = 1,200…

Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…

A: Variance analysis is a method of cost accounting used to find the variance between the actual and…

Q: The following information is available for a manufacturer. Compute the direct labor rate and…

A: Direct Labour rate variance = (Standard labour rate - Actual rate variance) * Actual labour hours…

Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Please help me

Actual fixed overhead expenditure in for the same period is C70,000. The labour force manages
to produce 5,800 packets of tooth pick in 16,000 hours of work.
Calculate the following variances.
(i)
(ii)
The Fixed overhead Expenditure variance
The Fixed overhead Volume variance

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Rockport Corporation uses the cost formula Y- $4,800+ $0.40X for the maintenance cost, where X is machine-hours. The August budget is based on 9,000 hours of planned machine time. Maintenance cost expected to be incurred during August is: O $4,800 O $8,400 O $3,600 O $1,200
Question 1 Shiashi Ltd is preparing its manufacturing overhead budget for 2024. Relevant data consist of the following: - Units to be produced (by quarters): 20,000, 24,000, 34,000 and 36,000. Direct labour: Time is 1.5 hours per unit. Variable overhead costs per direct labour hour: Indirect materials GH¢1.40; indirect labour GH 2.40 and maintenance $1.50. Fixed overhead costs per quarter: Supervisory salaries GH 55,000; depreciation GH 27,000 and maintenance GH¢25,000. a) You are required to prepare the manufacturing overhead budget for the year, showing quarterly data. b) What does an organisation stand to gain by preparing annual budgets for its operations? c) Describe the budgeting process of any business entity that you are familiar with.
Apex Corporation estimates that its production for the coming year will be 10,000 units with the following unit costs: Direct materials P40 Direct labor P60 Direct labor is paid at the rate of P24 per hour. The machine should be run for 20 minutes to produce one unit. Total estimated overhead is expected to consist of P400,000 for variable overhead and P400,000 for fixed overhead. What is the predetermined overhead rate based on direct labor cost? B D 113% 166% 133% 153%
ces The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 10,100 9,100 3rd Quarter 11,100 Units to be produced Each unit requires 0.25 direct labor-hours and direct laborers are paid $13.00 per hour. In addition, the variable manufacturing overhead rate is $1.80 per direct labor-hour. The fixed manufacturing overhead is $81,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $21,000 per quarter. Required: 1. Calculate the company's total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole. 2. and 3. Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3…
Ay 1 mcqs Bushman Ltd is preparing its manufacturing overhead budget for 2022. Relevant data are as follows: 1. Units to be produced (by quarters): 10,000, 12,000, 15,000, 18,000 2. Direct labour: 1.5 hours per unit 3. Variable overhead costs per direct labour hour Indirect materials $0.70 Indirect labour $1.20 Maintenance $0.50 4. Fixed overhead costs per quarter Supervisory salaries $35,000 Depreciation $16,000 Maintenance $15,000 1.) The total manufacturing overhead costs for the year is a. $130,800 b. $462,000 c. $500,000 d. $264,000 2.) The total fixed costs for quarter 3 is a. $55,000 b. $57,750 c. $64,000 d. $66,000 3.)How much is the total direct labour hours for quarter 4? a. 27,000 b. 22,500 c. 18,000 d. 15,000 4.)How much is the total direct labour hours for the year? a. 55,000 b. 82,500 c. 198,000 d. 140,000 5.)The total manufacturing overhead costs for quarter 1 is a. $109,200 b. $102,000 c. $120,000 d. $130,800 6.)How much is the total direct labour hours for…
ces The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 10, 100 9,100 3rd Quarter 11,100 Units to be produced Each unit requires 0.25 direct labor-hours and direct laborers are paid $13.00 per hour. In addition, the variable manufacturing overhead rate is $1.80 per direct labor-hour. The fixed manufacturing overhead is $81,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $21,000 per quarter. Required: 1. Calculate the company's total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole. 2. and 3. Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3…
A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
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: 150,000
Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
Each unit requires direct labor of 4.1 hours. The labor rate is $13.75 per hour and next years production is estimated at 75,000 units. What is the amount to be included in next years direct labor budget?
The production manager of Rordan Corporation prepared the following quarterly production forecast for next year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 11,200 8,500 8,600 10,900 Each unit requires 0.55 direct labor-hour, and direct laborers are paid $16.00 per hour. Required: 1. Prepare a direct labor budget for next year. Note: Round "Direct labor time per unit (hours)" answers to 2 decimal places.