Rogen Corporation manufactures a single product. The standard
cost per unit of product is shown below.
Direct materials—3 pound plastic at $7.00 per pound | $ 21.00 | |
Direct labor—1.0 hours at $12.00 per hour | 12.00 | |
Variable manufacturing overhead | 7.00 | |
Fixed manufacturing overhead | 7.00 | |
Total standard cost per unit | $47.00 |
The predetermined manufacturing overhead rate is $14 per direct
labor hour ($14.00 ÷ 1.0). It was computed from a master
manufacturing overhead budget based on normal production of 5,400
direct labor hours (5,400 units) for the month. The master budget
showed total variable costs of $37,800 ($7.00 per hour) and total
fixed overhead costs of $37,800 ($7.00 per hour). Actual costs for
October in producing 4,500 units were as follows.
Direct materials (13,620 pounds) | $ 96,702 | |
Direct labor (4,330 hours) | 53,692 | |
Variable overhead | 46,620 | |
Fixed overhead | 18,380 | |
Total manufacturing costs | $215,394 |
The purchasing department buys the quantities of raw materials that
are expected to be used in production each month. Raw materials
inventories, therefore, can be ignored.
Compute the overhead controllable variance and the overhead volume
variance.
what is overhead controllable variance?
Solution:
Overhead controllable variance = budgeted overhead for actual production - Actual overhead
= ($37,800 + 4500*$7) - ($46,620 + $18,380)
= $69,300 - $65,000 = $4,300 F
Overhead volume variance = Fixed overhead applied - Budgeted fixed overhead = 4500*$7 - $37,800 = $6,300 U
Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below....
Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials—1 pound plastic at $7.00 per pound $ 7.00 Direct labor—1.6 hours at $12.00 per hour 19.20 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 4.00 Total standard cost per unit $42.20 The predetermined manufacturing overhead rate is $10 per direct labor hour ($16.00 ÷ 1.6). It was computed from a master manufacturing overhead budget based on normal production of 8,000 direct labor hours...
Rogen Corporation manufactures a single product. The standard
cost per unit of product is shown below.
Direct materials—3 pound plastic at $6.00 per pound
$ 18.00
Direct labor—1.5 hours at $11.00 per hour
16.50
Variable manufacturing overhead
10.50
Fixed manufacturing overhead
7.50
Total standard cost per unit
$52.50
The predetermined manufacturing overhead rate is $12 per direct
labor hour ($18.00 ÷ 1.5). It was computed from a master
manufacturing overhead budget based on normal production of 7,800
direct labor hours...
P24.1A (LO 2, 3), AP Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials--1 pound plastic at $7.00 per pound Direct labor-1.6 hours at $12.00 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit $ 7.00 19.20 12.00 4.00 $42.20 The predetermined manufacturing overhead rate is $10 per direct labor hour ($16.00 + 1.6). It was com- puted from a master manufacturing overhead budget based on normal...
Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $7 per pound Direct labor-2.50 hours at $11.80 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit $ 7.00 29.50 17.50 17.50 $71.50 The predetermined manufacturing overhead rate is $14 per direct labor hour ($35.00 = 2.50). It was computed from a master manufacturing overhead budget based on normal production of 13,250 direct labor hours...
Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials—1 pound plastic at $6.00 per pound $ 6.00 Direct labor—2.0 hours at $11.85 per hour 23.70 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 12.00 Total standard cost per unit $53.70 The predetermined manufacturing overhead rate is $12.00 per direct labor hour ($24.00 ÷ 2.0). It was computed from a master manufacturing overhead budget based on normal production of 11,800 direct labor hours...
Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at 58 per pound Direct labor-2.00 hours at $12.15 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit $8.00 24.30 12.00 8.00 $52.30 The predetermined manufacturing overhead rate is $10 per direct labor hour ($20.00 - 2.00). It was computed from a master manufacturing overhead budget based on normal production of 11,200 direct labor hours (5,600...
Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $7 per pound Direct labor-1.50 hours at $11.10 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit $7.00 16.65 11.25 6.75 $41.65 The predetermined manufacturing overhead rate is $12 per direct labor hour ($18.00 - 1.50). It was computed from a master manufacturing overhead budget based on normal production of 8,850 direct labor hours (5,900...
Rogen Corporation manufactures a single product. The standard
cost per unit of product is shown below.
Direct materials—1 pound plastic at $6.00 per pound
$ 6.00
Direct labor—2.0 hours at $11.85 per hour
23.70
Variable manufacturing overhead
12.00
Fixed manufacturing overhead
12.00
Total standard cost per unit
$53.70
The predetermined manufacturing overhead rate is $12.00 per direct
labor hour ($24.00 ÷ 2.0). It was computed from a master
manufacturing overhead budget based on normal production of 11,800
direct labor hours...
Rogen Corporation manufactures a single product. The standard
cost per unit of product is shown below.
Direct materials—1 pound plastic at $6 per pound
$ 6.00
Direct labor—0.50 hours at $11.75 per hour
5.88
Variable manufacturing overhead
3.50
Fixed manufacturing overhead
1.50
Total standard cost per unit
$16.88
The predetermined manufacturing overhead rate is $10 per direct
labor hour ($5.00 ÷ 0.50). It was computed from a master
manufacturing overhead budget based on normal production of 2,950
direct labor hours...
*Problem 23-1A Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. $ 7.00 Direct materials-1 pound plastic at $7 per pound Direct labor-1.00 hours at $11.65 per hour Variable manufacturing overhead Fixed manufacturing overhead 11.65 7.00 7.00 $32.65 Total standard cost per unit The predetermined manufacturing overhead rate is $14 per direct labor hour ($14.00 – 1.00). It was computed from a master manufacturing overhead budget based on normal production of 5,300 direct...