required fill chart 1 through 4 apter 08 Pre-built Assignment to.mheducation.com
ID: 2531019 • Letter: R
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required fill chart 1 through 4
apter 08 Pre-built Assignment to.mheducation.com/hm.tpx Lane Company manufactures a single product that requires a great deal of hand labor Overhead cost is applied on the basis of standard direct labor hours. Variable manufacturing overhead should be $3.00 per standard direct labor-hour and fixed manufacturing overhead should be $735,000 per year The company's product requires 4 pounds of material that has a standard cost of $5.50 per pound and 1.5 hours of direct labor time that has a standard rate of $12 50 per hour The company planned to operate at a denominator activity level of 105,000 direct labor-hours and to produce 70,000 units of product during the most recent year Actual activity and costs for the year were as follows Number of units produced Actual direct labor-hours worked Actual variable manufacturing overhead cost incurred Actual fixed manufacturing overhead cost incurred 84,000 136,500 $259,350 $ 750,750 Required: 1. Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed elements (Round your answers to 2 decimal places.) Predetermined overhead rate Variable rate Fixed rate per DLH per DLH per DLH 2 Prepare a standard cost card for the company's product (Round your answers to 2 decimal places.) Direct materials Direct labor Variable overhead Fixed overhead Standard cost per unit pounds at DLHs at DLHs at DLHs at per pound S 000 per DLH per DLH per DLH 0.00 0.00 $ 000 3a Compute the standard srect laber hours allowed tor the year's production d direct l 3b Complete the following Manufacturing Overhead T-account for the y O Type here to searchExplanation / Answer
Requirement 1 Predetermined overhead rate 10 Variable rate 3 Fixed rate 7 Requirement 2 Standard cost card Direct materials 4 Pounds at 5.5 Per Pound 22 Direct labor 1.5 DLHs at 12.5 per DLH 18.75 Variable overhead 1.5 DLHs at 3 per DLH 4.5 Fixed overhead 1.5 DLHs at 7 per DLH 10.5 Standard cost per unit 55.75 Requirement 3a Standard direct labor hours allowed for year's production 126000 =84000*105000/70000 Manufacturing overhead Actual Variable overhead 259350 1260000 Overhead applied to Work In process Actual fixed overhead 750750 Overhead over applied 249900 1260000 1260000 Variable Overhead variances Actual variable overhead cost Flexible budget Standard cost(VOH applied) AH X AVR 259350 Given AH X SVR =136500*3 SH X SVR =126000*3 259350 409500 378000 150150 -31500 50800 Variable Overhead rate variance 150150 Favorable Variable Overhead efficiency variance -31500 Unfavourable Fixed overhead variances Actual fixed overhead cost Budgeted overhead Standard cost(FOH applied) AH X AFR 750750 Given =105000*7 SH X SFR =126000*7 750750 735000 882000 -15750 147000 Fixed overhead Budget variance -15750 Unfavourable Fixed overhead Volume variance 147000 Favourable
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