Question 1
The following information was obtained from records of a manufacturing unit using standard costing system.
Budgeted Actual
Production per month 2500 units 2000 units
Assume 8 hours / day
Working days 25 26
Fixed overhead $ 50000 $45000
Variable overhead $ 15000 $ 15000
Required
Calculate the following overheard variances
Question 2
From the following information from the books of Magaga (Pvt) Ltd, draw up the trial balance as at 31 December, 2018
$
Sales 40000
Purchases 35000
Sales returns 500
Purchase returns 620
Opening stock 10000
Provision for doubtful debts 80
Wages and salaries 3000
Rates 600
Telephone 100
Shop fitting at cost 4000
Van at cost 3000
Debtors 980
Creditors 700
Bad debts 20
Capital 17900
Bank 300
Drawings 1800
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According to HOMEWORKLIB RULES only first question is to be answers so the second question is not answered.
Question 1 The following information was obtained from records of a manufacturing unit using standard costing...
Question 1 The following information was obtained from records of a manufacturing unit using standard costing system. Budgeted Actual Production per month 2500 units 2000 units Assume 8 hours / day Working days 25 26 Fixed overhead $ 50000 $45000 Variable overhead $ 15000 $ 15000 Required Calculate the following overheard variances Variable overheard cost variance Variable overheard expenditure variance Variable overheard efficiency variance Fixed overheard cost variance Fixed overheard expenditure variance Fixed overheard volume variance Fixed overhead efficiency...
Use the following information for the next three questions. Oak Company uses a standard costing system. Manufacturing overhead costs are applied to products on the basis of direct labor hours. The standard cost card shows that 5 direct labor hours at the hourly rate of $25 per hour are required per unit of product. Oak Company had the following data for March: Actual Budgeted Units produced 22,000 20,000 Direct labor hours 105,000 100,000 Variable overhead costs $91,000 $80,000 Fixed overhead...
QUESTION 4 ABC Company uses a standard absorption costing system that allocates overhead on the basis of direct labor hours. Here is their Statement of Gross Margin: Statement of Gross Margin Standard Revenue 1,000,000 Sales price variance (30,000) Sales volume variance 60,000 Net revenue 1,030,000 CGS @ Standard 700,000 Total direct labor variance 30,000 Direct materials price variance (50,000) Direct materials quantity variance 40,000 Fixed overhead budget variance 50,000 Fixed overhead volume variance (100,000) Variable overhead spending variance 20,000 Variable...
[The following information applies to the questions displayed below.] Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. @ $5.10 per Ib.) $ 153.00 Direct labor (4 hrs. @ $15 per hr.) 60.00 Factory overhead—variable (4 hrs. @ $6 per hr.) 24.00 Factory overhead—fixed (4 hrs. @ $11 per hr.) 44.00 Total standard cost $ 281.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity...
1. Prepare the flexible budget using the information provided. Show calculations/explain where the numbers come from. 2. Answer the corresponding questions about the variances of the budget. Class Exercise for Standard Cost BUDGET 10,000 FLEXIBLE Units of output planned and actual ACTUAL 9,000 Direct material units per unit of output units price Labor units per unit of output hours rate Sales 300,000 306,000 Less variable costs of manufacturing Direct Material Direct Labor Factory Overhead Total 120,000 40,000 60,000 220,000 117,000...
1. Colina Production Company uses a standard costing system. The following information pertains to the current year. Direct labor hours is the driver used to assign overhead costs to products. Actual production 5,500 units Actual factory overhead costs ($16,500 is fixed) $40,125 Actual direct labor costs (11,250 hours) $131,625 Standard direct labor for 5,500 units: Standard hours allowed 11,000 hours Labor rate $12.00 The factory overhead rate is based on an activity level of 10,000 direct labor hours. Standard cost...
Question 5 (23 marks) Cleanup Ltd produces an industrial chemical and uses a standard costing system to keep tight control over its costs. At the beginning of 2017, the following standard cost sheet (for one unit) was prepared: Direct materials (10kg @ $1.60/kg) Direct labour (0.75 hrs @$18.00hr) Fixed overhead (? /hr) Variable overhead (? /hr) Standard cost per unit $16.00 13.50 3.00 2.25 $34.75 Manufacturing overhead is allocated based on direct labour hours. The budgeted overhead rate is determined...
The Hoffman Company uses an absorption-costing system based on standard costs. Total variable manufacturing cost, including direct material cost, is $3 per unit; the standard fixed manufacturing overhead costs are $480,000. Fixed manufacturing overhead is allocated at $8 per machine-hour ($480,000 / 60,000 machine-hours of denominator level). Selling price is $5 per unit. Variable operating (nonmanufacturing) cost, which is driven by units sold, is ginning inventory in 2014 is 40,000 units; ending inventory is 45,000 units. Sales in 2014 are...
please assist with the information provided: Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. @ $4.40 per Ib.) Direct labor (6 ha. @ $14 per hr.) Factory overhead-variable (6 hrs. @ $8 per hr.) Factory overhead-fixed 16 hrs. @ $11 per hr.) Total standard cost $132.00 84.00 48.00 66.00 $330.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 60,000 units per quarter....
Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. @ $6.00 per Ib.) $ 24.00 Direct labor (1.9 hrs. @ $13.00 per hr.) 24.70 Overhead (1.9 hrs. @ $18.50 per hr.) 35.15 Total standard cost $ 83.85 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factory’s capacity of 20,000 units per month. Following are the company’s budgeted overhead costs per month...