1) | |||||||||
predetermined overhead rate | 14.8 | ||||||||
variable rate | 5.4 | ||||||||
fixed rate (2,679,000/285000) | 9.4 | ||||||||
2) | |||||||||
Direct materials | 4 | pounds at | 11.5 | per pound | 46 | ||||
Direct labor | 1.5 | DLH'S | 13.7 | per DLH | 20.55 | ||||
Variable overhead | 1.5 | DLH'S at | 5.4 | per DLH | 8.1 | ||||
Fixed overhead | 1.5 | DLH'Sat | 9.4 | per DLH | 14.1 | ||||
Standard cost per unit | 88.75 | ||||||||
3) | |||||||||
Standard direct labor hours allowed for the years production= | |||||||||
Actual units produced *Direct labor hr per unit | |||||||||
228000*1.5 | |||||||||
342000 | |||||||||
3b) | |||||||||
Manufacturing overhead T-Account | |||||||||
Actual costs | 4112550 | Applied costs (342000*14.8) | 5061600 | ||||||
overhead overapplied | 949050 | ||||||||
4) | |||||||||
Variable overhead rate variance = (AR- Std rate)*AH | |||||||||
=(1,148,550 - 370500*5.4) | |||||||||
852150 | F | ||||||||
Variable overhead efficiency variance = (AH-SH)*SR | |||||||||
= | (370,500-342000)*5.4 | ||||||||
153900 | U | ||||||||
Fixed overhead budget variance = actual overhead - budgeted oveerhead | |||||||||
2,964,000-2,679,000 | |||||||||
285000 | U | ||||||||
fixed overhead volume variance= actual output*fixed overhead rate per unit-budgeted overhead | |||||||||
228000*14.1-2,679,000 | |||||||||
535,800 | F |
Problem 9A-8 Applying Overhead; Overhead Vorlonces [LO9-6, LO9-7) Lane Company manufactures a single product and applies...
Lane Company manufactures a single product and applies overhead cost to that product using 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 hour. The company planned to operate at a...
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Lane Company manufactures a single product and applies overhead cost to that product using standard direct labor-hours. The budgeted variable manufacturing overhead is $3.40 per direct labor hour and the budgeted fixed manufacturing overhead is $999.000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $6.50 per pound. The standard direct labor-hours per unit is 15 hours and the standard labor rate is $12.70 per hour. The company planned to operate at...
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Problem 10A-8 Applying Overhead; Overhead Variances [LO10-3, LO10-4] Lane Company manufactures a single product and applies overhead cost to that product using standard direct labor-hours. The budgeted variable manufacturing overhead is $3.20 per direct labor-hour and the budgeted fixed manufacturing overhead is $864,000 per year The standard quantity of materials is 4 pounds per unit and the standard cost is $6.00 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $12.60 per...
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 $3.60 per direct labor-hour and the budgeted fixed manufacturing overhead is $1,140,000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $7.00 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $12.80 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...