Maxwell Company uses a standard cost accounting system and applies production overhead to products on the...
Maxwell Company uses a standard cost accounting system and applies production overhead to products on the basis of machine hours. The following information is available for the year just ended:
Standard variable-overhead rate per hour: $2.50
Standard fixed-overhead rate per hour: $4.00
Planned activity during the period: 20,000 machine hours
Actual production: 10,700 finished units
Machine-hour standard: Two completed units per machine hour
Actual variable overhead: $55,440
Actual total overhead: $155,900
Actual machine hours worked: 23,100
Required:
1. Calculate the budgeted fixed overhead for the year.
2. Compute the variable-overhead spending variance.
3. Calculate the company’s fixed-overhead volume variance.
4. Did Maxwell spend more or less than anticipated for fixed overhead? How much?
5. Was variable overhead underapplied or overapplied during the year? By how much?
6. On the basis of the data presented, does it appear Maxwell suffered a lengthy strike during the year by its production workers? Briefly explain.
Homework Answers
Add Answer to:
Maxwell Company uses a standard cost accounting system and
applies production overhead to products on the...
Maxwell Company uses a standard cost accounting system and applies production overhead to products on the...
Maxwell Company uses a standard cost accounting system and applies production overhead to products on the basis of machine hours. The following information is available for the year just ended: Standard variable-overhead rate per hour: $7.50 Standard fixed-overhead rate per hour: $12.60 Planned activity during the period: 21,000 machine hours Actual production: 13,200 finished units Machine-hour standard: Two completed units per machine hour Actual variable overhead: $156,200 Actual total overhead: $437,800 Actual machine hours worked: 22,000 Required: 1. Calculate the...
The solution may be submitted as a Word document, Exc or PDF. The assignment will be...
The solution may be submitted as a Word document, Exc or PDF. The assignment will be from Chapter 11 Problem 11-4 your textbook. PI Overt Varia (LO 1 2. Va Maxwell Company uses a standard cost accounting system and applies production overhead to products on the basis of machine hours. The following information is available for the year just ended: Standard variable-overhead rate per hour: $2.50 Standard fixed-overhead rate per hour: $4.00 Planned activity during the period: 20,000 machine hours...
B3-5 points (12,5%) Zandi Company uses a standard cost accounting system and applies manufacturing overhead to...
B3-5 points (12,5%) Zandi Company uses a standard cost accounting system and applies manufacturing overhead to products on the basis of machine hours. The following information is available for the year just ended: Standard variable overhead rate per hour: $2.50 Planned activity during the period: 20,000 machine hours Machine-hour standard: Two completed units per machine hour Actual variable overhead: $55,440 Actual machine hours worked: 23,100 Actual production: 10,700 finished units Required: Calculate the variable overhead variances
Primara Corporation has a standard cost system in which it applies overhead to products based on...
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output $ 473,600 $ 467,000 64,000 65,000 62,000 Required: 1. Compute the...
Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied to units...
Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labour-hours. Each unit requires two standard hours of labour for completion. The denominator activity for the year was based on budgeted production of 200,000 units. Total overhead was budgeted at £900,000 for the year, and the fixed overhead rate was £3.00 per unit. The actual data pertaining to the manufacturing overhead for the year are presented below:...
Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units...
Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 52,200 machine hours per year, which represents 26,100 units of output. Annual budgeted fixed factory overhead costs are $261,000 and the budgeted variable factory overhead cost rate is $2.70 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was...
Bartoletti Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products...
Bartoletti Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $9.10 per MH. The company had budgeted its fixed manufacturing overhead cost at $70,000 for the month. During the month, the actual total variable manufacturing overhead was $66,720 and the actual total fixed manufacturing overhead was $72,00O. The actual level of activity for the period was 6,500 MHs. What was the total of the variable overhead...
Priority Company, which applies overhead to production on the basis of machine hours, reported the following...
Priority Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 12,000 Actual variable overhead incurred: $50,400 Actual machine hours worked: 17,000 Standard variable overhead cost per machine hour: $3.10 If Priority estimates 1.60 hours to manufacture a completed unit, the company's variable-overhead efficiency variance is:
Orlando Company, which applies overhead to production on the basis of machine hours, reported the following...
Orlando Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 16,000 Actual variable overhead incurred: $67,700 Actual machine hours worked: 19,100 Standard variable overhead cost per machine hour: $4.10 If Orlando estimates 1.10 hours to manufacture a completed unit, the company's variable-overhead spending variance is:
The Ramirez Company uses standard costing in its manufacturing plant for auto parts. The standard cost...
The Ramirez Company uses standard costing in its manufacturing plant for auto parts. The standard cost of a particular aut part, based on a denominator level of 4.100 output units per year, included 6 machine-hours of variable manufacturing overhead at $8 per hour and 6 machine-hours of fixed manufacturing overhead at $15 per hour. Actual output produced was 4,500 units. Variable manufacturing overhead incurred was $260,000. Fixed manufacturing overhead incurred was $385,000 Actual machine-hours were 28,500. Read the requirements Journal...
The solution may be submitted as a Word document, Exc or PDF. The assignment will be from Chapter 11 Problem 11-4 your textbook. PI Overt Varia (LO 1 2. Va Maxwell Company uses a standard cost accounting system and applies production overhead to products on the basis of machine hours. The following information is available for the year just ended: Standard variable-overhead rate per hour: $2.50 Standard fixed-overhead rate per hour: $4.00 Planned activity during the period: 20,000 machine hours...
B3-5 points (12,5%) Zandi Company uses a standard cost accounting system and applies manufacturing overhead to products on the basis of machine hours. The following information is available for the year just ended: Standard variable overhead rate per hour: $2.50 Planned activity during the period: 20,000 machine hours Machine-hour standard: Two completed units per machine hour Actual variable overhead: $55,440 Actual machine hours worked: 23,100 Actual production: 10,700 finished units Required: Calculate the variable overhead variances
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output $ 473,600 $ 467,000 64,000 65,000 62,000 Required: 1. Compute the...
Bartoletti Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $9.10 per MH. The company had budgeted its fixed manufacturing overhead cost at $70,000 for the month. During the month, the actual total variable manufacturing overhead was $66,720 and the actual total fixed manufacturing overhead was $72,00O. The actual level of activity for the period was 6,500 MHs. What was the total of the variable overhead...
Priority Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 12,000 Actual variable overhead incurred: $50,400 Actual machine hours worked: 17,000 Standard variable overhead cost per machine hour: $3.10 If Priority estimates 1.60 hours to manufacture a completed unit, the company's variable-overhead efficiency variance is:
The Ramirez Company uses standard costing in its manufacturing plant for auto parts. The standard cost of a particular aut part, based on a denominator level of 4.100 output units per year, included 6 machine-hours of variable manufacturing overhead at $8 per hour and 6 machine-hours of fixed manufacturing overhead at $15 per hour. Actual output produced was 4,500 units. Variable manufacturing overhead incurred was $260,000. Fixed manufacturing overhead incurred was $385,000 Actual machine-hours were 28,500. Read the requirements Journal...
Most questions answered within 3 hours.
-
Little’s Law: Val d’Costa is a world famous ski village in the
French Alps. Because of...
asked 22 minutes ago -
Find the absolute error D for the calculation if A + B/C=D A=
9.4 +/- 0.4...
asked 36 minutes ago -
New Air Heating and Cooling, manufactures furnaces and central
air units. The company pride itself on...
asked 49 minutes ago -
A coach uses a new technique to train gymnasts. Seven
gymnasts were randomly selected and their...
asked 2 hours ago -
While rotating the tires on your car you notice a rock [mass =
0.1 Kg] stuck...
asked 4 hours ago -
Using MARS simulator, write MIPS programs according to
the following scenarios: Receive a positive integer number...
asked 6 hours ago -
An object in front of a concave mirror has a real image that is
11.5 cm...
asked 6 hours ago -
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 8 hours ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 8 hours ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 8 hours ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 8 hours ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 9 hours ago