Question

0 More Info The company allocates manufacturing overhead based on direct labor hours. Martin has budgeted fixed manufacturing overhead for the year to be $627,000 The predetermined fixed manufacturing overhead rate is $16.20 per direct labor hour, while the standard variable manufacturing overhead rate is $0.80 per direct labor hour. The direct labor standard for each case is one-quarter (0.25) of an hour The company actually processed 160,000 cases of frozen organic fruits during the year and incurred $668,170 of manufacturing overhead. Of this amount, $634,000 was fixed. The company also incurred a total of 40,200 direct labor hours. Print Done
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Answer 1

Page- No O Ansoer O vaniable overhead albocated to produchion Vaniable overhead allocated to produchion a Aclüal oubpub x Standand vaniable vate outpet 160,000 x (4 0.80K0 as) 160,000 X 0.2 $ 32000 '.Voniable ovehead allocated -fo produchion 32000 fiaed ovenhead allocaded to paodudion afandand fied onate bubput 160,000 cases X ($ 620 X 0-25) fized overhead allocated do production - adial olp x - (60000 X 4.05 $ 648000 .fraed ovenhead allocated. to production = $ 648000 2. Vaniable of orate & eticieny vanian es Aclial manubacturing overhead = $ 668,170o fraed pontion $ 634000

Page d $668110 - 634000 Actial vaniable overhead $ 34140 Aclüal howrs 4 o, 200 disect labos howrs f0.85 34140 hown per Alial vrate 40200 Variable OH nate voniace Vaniable oH actial orate Aclüal howis X ( standand vale vale Voni ance x( $0.8 (98.0 * 2010 U "This vaniance tells the manager that Mantin foods adaby 40200 coould have thiny than incurried more on vaniable manubachuning OH eapected given shie aclual howrs vsed. Veoniable OH cbbiciency voniance Vaniable OH chtrců actual bre) (afardand has Stardand onale -ency vaniance $0.8 40200) x (49,000 $ 160 u Standand houns 160 000 x0.25 40,000

NO This vaoriance t eills the manager that Manlin foodo oned more divect labos hows than anticipated for the adual volume of output · 3 -fraed oH budget vaniance actual frued oH fixed OH budget vaniance Budgeted fixed OH $ 6a4000 $ 7 000 U 0o0he9 This vaniance tells ithe mangger that Mantin foods apent fized OH Costs . more than anticiprted on fixed OH volume variance bodgeted frued on $627000 faed oH volume væriane Allocaled fized oH $ 648000 $ Q1000 F that Mantin bods produced This vaniante fells the manogei move cases of organic foods otran oiginally expected.