Homework Answers
Solution a:
Variable factory overhead rate = Budgeted variable overhead / Budgeted direct labor hours = $18,450 / 3375 = $5.47 per hour
Solution b:
Variable factory overhead controllable variance = Standard variable overhead cost - Actual variable overhead cost
= (5100*0.75*$5.466666) - $21,000 = $90 U
Solution c:
Variable factory overhead controllable variance in unfavorable.
Solution d:
Fixed factory overhead rate = Budgeted fixed overhead at normal capacity / Budgeted labor hours at normal capacity
= $20,000 / 3750 = $5.33 per labor hour
Solution e:
Fixed overhead applied = Standard hours * Fixed factory overhead rate = 5100*0.75*$5.3333333 = $20,400
Fixed factory overhead volume variance = Fixed overhead applied - Budgeted fixed overhead
= $20,400 - $20,000 = $400 F
Solution f:
Fixed factory overhead volume variance is favorable.
Solution g:
Total overhead applied = Standard variable overhead + Fixed overhead applied
= (5100*0.75*$5.466666) + $20,400 = $41,310
Actual overhead incurred = $21,000 + $20,000 = $41,000
Total factory overhead cost variance = Total overhead applied - Actual overhead applied = $41,310 - $41,000 = $310 F
The variance is favorable.
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Medal Corporation uses direct labor hours to allocate factory overhead. During the period, the company produced...
Medal Corporation uses direct labor hours to allocate factory overhead. During the period, the company produced...
Medal Corporation uses direct labor hours to allocate factory overhead. During the period, the company produced 5,100 units and incurred variable factory overhead costs of $21,000, Use the information below to determine the following (round dollars to the nearest cent): Medal Corporation Factory Overhead Cost Budget For the three months ending March 31, 2015 100% I 10% Percent of normal capacity Units Direct labor hours (0.75 hr. per unit Budgeted factory overhead: 90% ced 5,000 3,750 5,500 4,125 4 Variable...
Blaze Corp. applies overhead on the basis of direct labor hours. For the month of March,...
Blaze Corp. applies overhead on the basis of direct labor hours.
For the month of March, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following budget.
Operating Levels
Overhead Budget
80%
Production in units
10,000
Standard direct labor hours
20,000
Budgeted overhead
Variable overhead costs
Indirect materials
$
21,000
Indirect labor
25,000
Power
6,800
Maintenance
5,200
Total variable costs
58,000
Fixed overhead costs
Rent of factory building
24,000
Depreciation—Machinery
28,000...
James Corp. applies overhead on the basis of direct labor hours. For the month of May,...
James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget: Operating Levels Overhead Budget 80% Production in units 10,000 Standard direct labor hours 25,000 Budgeted overhead Variable overhead costs Indirect materials $ 18,000 Indirect labor 25,000 Power 5,000 Maintenance 2,000 Total variable costs 50,000 Fixed overhead costs Rent of factory building 18,000 Depreciation—Machinery...
Blaze Corp. applies overhead on the basis of direct labor hours. For the month of March, the company planned production...
Blaze Corp. applies overhead on the basis of direct labor hours.
For the month of March, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following budget:
Operating Levels
Overhead Budget
80%
Production in units
10,000
Standard direct labor hours
30,000
Budgeted overhead
Variable overhead costs
Indirect materials
$
30,000
Indirect labor
40,000
Power
8,000
Maintenance
3,000
Total variable costs
81,000
Fixed overhead costs
Rent of factory building
31,000
Depreciation—Machinery
45,000...
James Corp. applies overhead on the basis of direct labor hours. For the month of May,...
James Corp. applies overhead on the basis of direct labor hours.
For the month of May, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following overhead budget:
Operating Levels
Overhead Budget
80%
Production in units
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Standard direct labor hours
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Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for...
Factory Overhead Cost Variance Report
Tannin Products Inc. prepared the following factory overhead
cost budget for the Trim Department for July of the current year,
during which it expected to use 14,000 hours for production:
Variable overhead costs:
Indirect factory labor
$47,600
Power and light
10,360
Indirect materials
15,400
Total variable overhead cost
$73,360
Fixed overhead costs:
Supervisory salaries
$56,430
Depreciation of plant and equipment
14,850
Insurance and property taxes
27,720
Total fixed overhead cost
99,000
Total factory overhead cost...
James Corp. applies overhead on the basis of direct labor hours. For the month of May,...
James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12.500 units) and prepared the following overhead budget: Operating Levels 8004 10,000 26,000 Overhead Budget Production in units Standard direct labor hours Budgeted overhead Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable costs Fixed overhead costs Rent of factory building Depreciation-Machinery Supervisory salaries Total fixed costs Total overhead...
James Corp. applies overhead on the basis of direct labor hours. For the month of May,...
James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget: Operating Levels BOX 10,000 28,000 Overhead Budget Production in units Standard direct labor hours Budgeted overhead Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable costs Fixed overhead costs Rent of factory building Depreciation Machinery Supervisory salaries Total fixed costs Total...
James Corp. applies overhead on the basis of direct labor hours. For the month of May,...
James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget: Operating Levels 80% 10,000 26,000 $ 15,600 26,000 7,800 Overhead Budget Production in units Standard direct labor hours Budgeted overhead Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable costs Fixed overhead costs Rent of factory building Depreciation-Machinery Supervisory salaries Total...
James Corp. applies overhead on the basis of direct labor hours.
James Corp. applies overhead on the basis of direct labor
hours.
James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget Overhead Budget Production in units Standard direct labor hours Budgeted overhead 88% 10,000 25,800 Varlable overhead costs Indirect materials Indirect labor Power Maintenance Total variable costs $18,800 25,000 5,000 50.000 Fixed overhead...
Medal Corporation uses direct labor hours to allocate factory overhead. During the period, the company produced 5,100 units and incurred variable factory overhead costs of $21,000, Use the information below to determine the following (round dollars to the nearest cent): Medal Corporation Factory Overhead Cost Budget For the three months ending March 31, 2015 100% I 10% Percent of normal capacity Units Direct labor hours (0.75 hr. per unit Budgeted factory overhead: 90% ced 5,000 3,750 5,500 4,125 4 Variable...
Blaze Corp. applies overhead on the basis of direct labor hours.
For the month of March, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following budget.
Operating Levels
Overhead Budget
80%
Production in units
10,000
Standard direct labor hours
20,000
Budgeted overhead
Variable overhead costs
Indirect materials
$
21,000
Indirect labor
25,000
Power
6,800
Maintenance
5,200
Total variable costs
58,000
Fixed overhead costs
Rent of factory building
24,000
Depreciation—Machinery
28,000...
Blaze Corp. applies overhead on the basis of direct labor hours.
For the month of March, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following budget:
Operating Levels
Overhead Budget
80%
Production in units
10,000
Standard direct labor hours
30,000
Budgeted overhead
Variable overhead costs
Indirect materials
$
30,000
Indirect labor
40,000
Power
8,000
Maintenance
3,000
Total variable costs
81,000
Fixed overhead costs
Rent of factory building
31,000
Depreciation—Machinery
45,000...
James Corp. applies overhead on the basis of direct labor hours.
For the month of May, the company planned production of 10,000
units (80% of its production capacity of 12,500 units) and prepared
the following overhead budget:
Operating Levels
Overhead Budget
80%
Production in units
10,000
Standard direct labor hours
26,000
Budgeted overhead
Variable overhead costs
Indirect materials
$
15,600
Indirect labor
26,000
Power
7,800
Maintenance
2,600
Total variable costs
52,000
Fixed overhead costs
Rent of factory building
22,000
Depreciation—Machinery...
Factory Overhead Cost Variance Report
Tannin Products Inc. prepared the following factory overhead
cost budget for the Trim Department for July of the current year,
during which it expected to use 14,000 hours for production:
Variable overhead costs:
Indirect factory labor
$47,600
Power and light
10,360
Indirect materials
15,400
Total variable overhead cost
$73,360
Fixed overhead costs:
Supervisory salaries
$56,430
Depreciation of plant and equipment
14,850
Insurance and property taxes
27,720
Total fixed overhead cost
99,000
Total factory overhead cost...
James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12.500 units) and prepared the following overhead budget: Operating Levels 8004 10,000 26,000 Overhead Budget Production in units Standard direct labor hours Budgeted overhead Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable costs Fixed overhead costs Rent of factory building Depreciation-Machinery Supervisory salaries Total fixed costs Total overhead...
James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget: Operating Levels BOX 10,000 28,000 Overhead Budget Production in units Standard direct labor hours Budgeted overhead Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable costs Fixed overhead costs Rent of factory building Depreciation Machinery Supervisory salaries Total fixed costs Total...
James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget: Operating Levels 80% 10,000 26,000 $ 15,600 26,000 7,800 Overhead Budget Production in units Standard direct labor hours Budgeted overhead Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable costs Fixed overhead costs Rent of factory building Depreciation-Machinery Supervisory salaries Total...
James Corp. applies overhead on the basis of direct labor
hours.
James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget Overhead Budget Production in units Standard direct labor hours Budgeted overhead 88% 10,000 25,800 Varlable overhead costs Indirect materials Indirect labor Power Maintenance Total variable costs $18,800 25,000 5,000 50.000 Fixed overhead...
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