Alden Company uses a two-variance analysis for overhead
variances. Practical capacity is defined as 36 setups...
Alden Company uses a two-variance analysis for overhead
variances. Practical capacity is defined as 36 setups and 36,000
machine hours to manufacture 7,200 units for the year. Selected
data for 2016 follow:
Budgeted
fixed factory overhead:
Setup
$ 57,600
Other
265,000
$
322,600
Total
factory overhead incurred
$
494,000
Variable
factory overhead rate:
Per setup
$
650
Per machine hour
$
4
Total
standard machine hours allowed for the units manufactured
24,000
hours
Machine
hours actually worked
28,000
hours...
Overhead Variances, Four-Variance Analysis
Oerstman, Inc., uses a standard costing system and develops its
overhead rates...
Overhead Variances, Four-Variance Analysis
Oerstman, Inc., uses a standard costing system and develops its
overhead rates from the current annual budget. The budget is based
on an expected annual output of 125,000 units requiring 500,000
direct labor hours. (Practical capacity is 520,000 hours.) Annual
budgeted overhead costs total $830,000, of which $585,000 is fixed
overhead. A total of 119,100 units using 498,000 direct labor hours
were produced during the year. Actual variable overhead costs for
the year were $261,100, and...
Overhead Variances, Two- And Three-Variance Analyses
Oerstman, Inc., uses a standard costing system and develops its...
Overhead Variances, Two- And Three-Variance Analyses
Oerstman, Inc., uses a standard costing system and develops its
overhead rates from the current annual budget. The budget is based
on an expected annual output of 123,000 units requiring 492,000
direct labor hours. (Practical capacity is 512,000 hours.) Annual
budgeted overhead costs total $772,440, of which $551,040 is fixed
overhead. A total of 119,300 units using 490,000 direct labor hours
were produced during the year. Actual variable overhead costs for
the year were...
Overhead Variances, Four-Variance Analysis, Journal Entries
Laughlin, Inc., uses a standard costing system. The predetermined
overhead...
Overhead Variances, Four-Variance Analysis, Journal Entries
Laughlin, Inc., uses a standard costing system. The predetermined
overhead rates are calculated using practical capacity. Practical
capacity for a year is defined as 1,000,000 units requiring 200,000
standard direct labor hours. Budgeted overhead for the year is
$750,000, of which $300,000 is fixed overhead. During the year,
900,000 units were produced using 190,000 direct labor hours.
Actual annual overhead costs totaled $800,000, of which $294,700 is
fixed overhead. Required: 1. Calculate the fixed...
Question 4:
Eric Co. uses machine hours to apply standard overhead cost to
production. The following...
Question 4:
Eric Co. uses machine hours to apply standard overhead cost to
production. The following data pertain to October:
Master budget data:
Units
2,500
Total machine hours (denominator volume)
100,000
Total variable overhead cost
$
250,000
Total fixed overhead cost
$
50,000
Actual operating results:
Variable overhead cost incurred
$
265,000
Fixed overhead cost incurred
$
54,000
Units manufactured
2,250
Total machine hours
96,000
Required: Compute the following variances using
machine hours as the activity variable used to assign...
Capiz Corporation uses the two-way overhead variance analysis.
During the recently ended period, total controllable variance...
Capiz Corporation uses the two-way overhead variance analysis.
During the recently ended period, total controllable variance was
determined to be at P16,000 unfavorable while total
non-controllable variance was at P6,000 favorable. Total actual
factory overhead amounted to P3,530,000. Actual production totaled
352,000 units while standard machine hours per unit produced is 2
hours. Total budgeted capacity is 700,000 machine hours.
a. How much is the total overhead applied to actual
production?
b. What is the standard overhead rate per hour?...
OVERHEAD APPLICATION, FIXED AND VARIABLE OVERHEAD
VARIANCES
Tules Company is planning to produce 2,400,000 power drills...
OVERHEAD APPLICATION, FIXED AND VARIABLE OVERHEAD
VARIANCES
Tules Company is planning to produce 2,400,000 power drills for
the coming year. The company uses direct labour hours to assign
overhead to products. Each drill requires 0.5 standard hour of
labour for completion. The total budgeted overhead was $2,700,000.
The total fixed overhead budgeted for the coming year is
$1,320,000. Predetermined overhead rates are calculated using
expected production, measured in direct labour hours. Actual
results for the year are:
Actual production (units) ...
Patel and Sons Inc. uses a standard cost system to apply factory
overhead costs to units...
Patel and Sons Inc. uses a standard cost system to apply factory
overhead costs to units produced. Practical capacity for the plant
is defined as 55,200 machine hours per year, which represents
27,600 units of output. Annual budgeted fixed factory overhead
costs are $276,000 and the budgeted variable factory overhead cost
rate is $3.70 per unit. Factory overhead costs are applied on the
basis of standard machine hours allowed for units produced.
Budgeted and actual output for the year was...
Patel and Sons, Inc., uses a standard cost system to apply
overhead costs to units produced....
Patel and Sons, Inc., uses a standard cost system to apply
overhead costs to units produced. Practical capacity for the plant
is defined as 55,800 machine hours per year, which represents
27,900 units of output. Annual budgeted fixed overhead costs are
$279,000 and the budgeted variable overhead cost rate is $3.90 per
unit. Factory overhead costs are applied on the basis of standard
machine hours allowed for units produced. Budgeted and actual
output for the year was 21,700 units, which...