Answer: | |
(a) | |
Predetermined Overhead application
rate = Estimated Overhead / Estimated Activity = $ 33,930 / ( 39,000 Units x 1/4 ) = $ 33,930 / 9,750 = $ 3.48 |
|
Predetermined Overhead application rate | $ 3.48 |
(b) | |
Machine hours allowed = Units Produced x No. of Machine Hours = 35,180 x 0.25 |
8,795 hours |
(c ) | |
Fixed Overhead applied to Work in
Process = Predetermined Overhead application rate x Machine hours allowed = $ 3.48 x 8,795 |
$ 30,607 |
(d) | |
Over or Underapplied Overhead = Actual overhead (-) Applied Overhead = $ 37,900 (-) $ 30,607 |
$ 7,293 Underapplied |
Underapplied Fixed Overhead $ 7,293 | |
(e) | |
Fixed overhead budget variance = Budgeted overhead (-) Actual overhead = $ 33,930 (-) $ 37,900 |
$ 3,970 (Unfavourable ) |
Fixed overhead volume variance = Applied Fixed overhead (-) Budgeted Fixed overhead = $ 30,607 (-) $ 33,930 |
$ 3,323 (Unfavourable ) |
2 Silverstone's production budget for March called for making 39,000 units of a single product. The...
2 Silverstone's production budget for March caled for making 39,000 units of a single product. The firm's production standards allow one quarter of a machine hour per unit produced. The foed overhead budget for March was $33.930. Silverstone uses an absorption costing system. Actual activity and costs for Merch were os 35180 Units produced Fixed overhead costs incurred 327900 & man Required a Calculate the predetermined foed overhead application rate that would be used in March (Round your answer to...
The condensed form of Nordstrop Company’s flexible budget for manufacturing overhead follows: Cost Machine-Hours Formula Overhead Costs (per machine-hour) 7,500 8,500 9,500 Variable cost $ 1.35 $ 10,125 $ 11,475 $ 12,825 Fixed cost 15,000 15,000 15,000 Total overhead cost $ 25,125 $ 26,475 $ 27,825 The following information is available for a recent period: The denominator activity of 7,500 machine-hours was chosen to compute the predetermined overhead rate. At the 7,500 standard machine-hours level of activity, the company should...
The condensed form of Nordstrop Company’s flexible budget for manufacturing overhead follows: Cost Machine-Hours Formula Overhead Costs (per machine-hour) 8,500 9,500 10,500 Variable cost $ 1.05 $ 8,925 $ 9,975 $ 11,025 Fixed cost 28,900 28,900 28,900 Total overhead cost $ 37,825 $ 38,875 $ 39,925 The following information is available for a recent period: The denominator activity of 8,500 machine-hours was chosen to compute the predetermined overhead rate. At the 8,500 standard machine-hours level of activity, the company should...
Norwall Company’s budgeted variable manufacturing overhead cost
is $1.30 per machine-hour and its budgeted fixed manufacturing
overhead is $30,624 per month.
The following information is available for a recent month:
The denominator activity of 9,570 machine-hours is used to
compute the predetermined overhead rate.
At a denominator activity of 9,570 machine-hours, the company
should produce 3,300 units of product.
The company’s actual operating results were:
Number of units produced
4,570
Actual machine-hours
10,090
Actual variable manufacturing overhead cost
$
14,630...
Norwall Company's budgeted variable manufacturing overhead cost iS $1.95 per machine-hour and its budgeted fixed manufacturing overhead is $51,336 per month. The following information is available for a recent month: a. The denominator activity of 28,520 machine-hours is used to compute the predetermined overhead rate b. At a denominator activity of 28,520 machine-hours, the company should produce 12,400 units of product. C. The company's actual operating results were Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual...
Norwall Company’s
budgeted variable manufacturing overhead cost is $1.95 per
machine-hour and its budgeted fixed manufacturing overhead is
$36,036 per month.
The following
information is available for a recent month:
The denominator activity of 18,480 machine-hours is used to
compute the predetermined overhead rate.
At a denominator activity of 18,480 machine-hours, the company
should produce 6,600 units of product.
The company’s actual operating results were:
Number of units
produced
7,550
Actual
machine-hours
19,630
Actual variable
manufacturing overhead cost
$
41,223...
Exercise 10A-2 Predetermined Overhead Rate; Overhead Variances [LO10-3, LO10-4] Norwall Company’s budgeted variable manufacturing overhead cost is $1.20 per machine-hour and its budgeted fixed manufacturing overhead is $81,744 per month. The following information is available for a recent month: The denominator activity of 31,440 machine-hours is used to compute the predetermined overhead rate. At a denominator activity of 31,440 machine-hours, the company should produce 13,100 units of product. The company’s actual operating results were: Number of units produced 14,120 Actual...
Norwall Company's budgeted variable manufacturing overhead cost is $1.40 per machine-hour and its budgeted fixed manufacturing overhead is $77,350 per month. The following information is available for a recent month: a. The denominator activity of 22,750 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 22,750 machine-hours, the company should produce 9,100 units of product. c. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual...
Norwall Company's budgeted variable manufacturing overhead cost is $1.30 per machine-hour and its budgeted fixed manufacturing overhead is $30,624 per month. The following information is available for a recent month: a. The denominator activity of 9,570 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 9,570 machine-hours, the company should produce 3,300 units of product. c. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual...
Norwall Company's budgeted variable manufacturing overhead cost is $1.20 per machine-hour and its budgeted fixed manufacturing overhead is $105,966 per month. The following information is available for a recent month: a. The denominator activity of 33,640 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 33,640 machine-hours, the company should produce 11,600 units of product. c. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual...