1) | |||||||||
predetermined overhead rate | 15.2 | ||||||||
variable rate | 5.6 | ||||||||
fixed rate (2,880,000/300000) | 9.6 | ||||||||
2) | |||||||||
Direct materials | 4 | pounds at | 12 | per pound | 48 | ||||
Direct labor | 1.5 | DLH'S | 13.8 | per DLH | 20.7 | ||||
Variable overhead | 1.5 | DLH'S at | 5.6 | per DLH | 8.4 | ||||
Fixed overhead | 1.5 | DLH'Sat | 9.6 | per DLH | 14.4 | ||||
Standard cost per unit | 91.5 | ||||||||
3) | |||||||||
Standard direct labor hours allowed for the years production= | |||||||||
Actual units produced *Direct labor hr per unit | |||||||||
240000*1.5 | |||||||||
360000 | |||||||||
3b) | |||||||||
Manufacturing overhead T-Account | |||||||||
Actual costs | 4368000 | Applied costs (360000*15.2) | 5472000 | ||||||
overhead overapplied | 1104000 | ||||||||
4) | |||||||||
Variable overhead rate variance = (AR- Std rate)*AH | |||||||||
=(1,248,000-390000*5.60) | |||||||||
936000 | F | ||||||||
Variable overhead efficiency variance = (AH-SH)*SR | |||||||||
= | (390,000-360000)*5.6 | ||||||||
168000 | U | ||||||||
Fixed overhead budget variance = actual overhead - budgeted oveerhead | |||||||||
3,120,000-2,880,000 | |||||||||
240000 | U | ||||||||
fixed overhead volume variance= actual output*fixed overhead rate per unit-budgeted overhead | |||||||||
240,000*14.4-2,880,000 | |||||||||
576,000 | F | ||||||||
Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost...
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. The budgeted variable manufacturing overhead is $5.00 per direct labor-hour and the budgeted fixed manufacturing overhead is $2,295,000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $10.50 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $13.50 per...
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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. The budgeted variable manufacturing overhead is $5.40 per direct labor-hour and the budgeted fixed manufacturing overhead is $2,679,000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $11.50 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $13.70 per...
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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. The budgeted varlable manufacturing overhead Is $2.60 per direct labor-hour and the budgeted fixed manufacturing overhead is $495,000 per year The standard quantity of materials is 4 pounds per unit and the standard cost is $4.50 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $12.30 per...
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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. The budgeted variable manufacturing overhead is $2.60 per direct labor-hour and the budgeted fixed manufacturing overhead is $495,000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $4.50 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $12.30 per...