During the year, 3,640 units were produced, 16,180 hours were worked, and the ac
ID: 2380989 • Letter: D
Question
During the year, 3,640 units were produced, 16,180 hours were worked, and the actual manufacturing overhead was $64,210. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours.
AE22-5 The standard cost of Product B manufactured by NJF Company includes 3 units of direct materials at $5.15 per unit. During June, 28,000 units of direct materials are purchased at a cost of $4.84 per unit, and 28,000 units of direct materials are used to produce 9,000 units of Product B. The standard cost of Product B manufactured by NJF Company includes 3 units of direct materials at $5.15 per unit. During June, 28,000 units of direct materials are purchased at a cost of $4.84 per unit, and 28,000 units of direct materials are used to produce 9,000 units of Product B. Compute the total materials variance and the price and quantity variances. Repeat the question above, assuming the purchase price is $5.36 and the quantity purchased and used is 26,200 units. Nevitt Company's standard labor cost of producing one unit of Product DD is 4 hours at the rate of $16.80 per hour. During August, 40,800 hours of labor are incurred at a cost of $16.94 per hour to produce 10,000 units of Product DD. Compute the total labor variance. Compute the labor price and quantity variances. Repeat the previous question, assuming the standard is 4.2 hours of direct labor at $17.15 per hour. The following information was taken from the annual manufacturing overhead cost budget of Marantha Company. During the year, 3,640 units were produced, 16,180 hours were worked, and the actual manufacturing overhead was $64,210. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. Compute the total, fixed, and variable predetermined manufacturing overhead rates. (Round answers to 2 decimal places, i.e. 2.25.) Compute the total, controllable, and volume overhead variances.Explanation / Answer
AE22-21 (a,b)
Compute the total, fixed, and variable predetermined manufacturing overhead rates. (Round answers to 2 decimal places, i.e. 2.25.)
Variable overhead = 39600/16500
= 2.40
$ 2.40
Fixed overhead = 24750/16500
= 1.50
$1.50
Total overhead = 64350/16500
= 3.90
$3.90
Compute the total, controllable, and volume overhead variances.
Total overhead variance = SH*SR-AH*AR
= 14560*3.90-64210
= $ 7426 unfavorable
$ 7426 unfavorable
Overhead controllable variance = SR of Variable Overhead * AH worked + Budgeted fixed Overhead
AE22-21 (a,b)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.