Rondell Company uses a standard cost system. Indirect costs were budgeted at $196,000 plus $15 per...

Question

Question

Rondell Company uses a standard cost system. Indirect costs were budgeted at $196,000 plus $15 per direct labour hour. The ov

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

SOLUTION

1. Fixed overhead volume variance = Applied Fixed overhead - Budgeted fixed overhead

= ($20*8,780) - 196,000

= $175,600 - 196,000 = $20,400 F

Fixed overhead rate = 196,000/9,800 = $20

2. Variable overhead Spending Variance = Actual variable overhead - (Actual hours * standard rate)

= $183,600 - (9,800 * $15)

= $183,600 - $147,000 = $36,600 U

3. Variable overhead Efficiency Variance = Standard rate*(Actual hours - standard hours allowed)

= $15 * (9,800 - 8,780)

= $15 * 1,020 = $15,300 U

4.

Particulars	Amount ($)
Actual overhead (189,200+183,600)	372,800
Applied overhead (9,80015)+(8,780$20)	322,600
Overhead Over applied	50,200

Add a comment

Answer 2

Similar Homework Help Questions

Question 24 Rondell Company uses standard cost system. Indirect costs were budgeted at $190,800 plus $13...

Question 24 Rondell Company uses standard cost system. Indirect costs were budgeted at $190,800 plus $13 per direct labour hour. The overhead rate is based on 10,600 hours. Actual results were: Standard direct labour hours allowed Actual direct labour hours Fixed overhead Variable overhead 9,070 10,600 $179,000 $174,400 Calculate the fixed overhead production volume variance. Fixed overhead production volume variance Calculate the variable overhead spending variance. Variable overhead spending variance $ Calculate the variable overhead efficiency variance. Variable overhead efficiency...
Rondell Company uses a standard cost system. Indirect costs were budgeted at $201,400 plus $13 per direct labour hour. The overhead rate is based on 10,600 hours. Actual results were: Standard direct labour hours allowed 9,400 Actual direct labour hour

Calculate the fixed overhead production volume variance.Fixed overhead production volume variance$ Neither favourable nor unfavourableUnfavourableFavourableCalculate the variable overhead spending variance.Variable overhead spending variance$ FavourableUnfavourableNeither favourable nor unfavourableCalculate the variable overhead efficiency variance.Variable overhead efficiency variance$ Neither favourable nor unfavourableFavourableUnfavourableCalculate the over- or underapplied overhead.
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:...

Sedona Company set the following standard costs for one unit of its product for this year...

Sedona Company set the following standard costs for one unit of its product for this year Direct material (30 Ibs.@ $2.20 per Ib.) Direct labor (10 hrs. @ $4.60 per hr.) Variable overhead (10 hrs. @ $3.00 per hr.) Fixed overhead (10 hrs. @ $1.50 per hr.) $66.00 46.00 30.00 15.00 $157.00 Total standard cost The $4.50 ($3.00+ $1.50) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity...
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...
Milberg Co. uses absorption costing and standard costing to improve cost control. In 2016, the total...

Milberg Co. uses absorption costing and standard costing to improve cost control. In 2016, the total budgeted overhead rate was $1.55 per direct labour hour. When preparing the budget, Milberg expected a monthly activity level of 10,000 direct labour hours. The monthly variable overhead cost budgeted for this level of activity was $9,500. The following data on actual results are provided for the month of November 2016. calculate the following variances: Material Price Variance Materials Quantity Variance Total Materials Variance...

H&X Co. uses a standard job cost system with a normal capacity of 27,000 direct labour hours. H&X Co. pr...

H&X Co. uses a standard job cost system with a normal capacity of 27,000 direct labour hours. H&X Co. produces 12,500 units, which cost $196,000 for direct labour (24,500 hours), $28,750 for variable overhead, and $141,875 for fixed overhead. The standard variable overhead per unit is $2 (2 hours at $1 per hour), and the standard fixed overhead per unit is $10.20 (2 hours at $5.10 per hour). Calculate the fixed overhead production volume variance. Fixed overhead production volume variance
Milberg Co. uses absorption costing and standard costing to improve cost control. In 2016, the total...

Milberg Co. uses absorption costing and standard costing to improve cost control. In 2016, the total budgeted overhead rate was $1.55 per direct labour hour. When preparing the budget, Milberg expected a monthly activity level of 10,000 direct labour hours. The monthly variable overhead cost budgeted for this level of activity was $9,500. The following data on actual results are provided for the month of November 2016. Solve for: Variable Overhead Spending Variance Variable Overhead Efficiency Variance Variable Overhead Total...
Overhead Application, Overhead Variances, Journal Entries Plimpton Company produces countertop ovens. Plimpton uses a standard costing...

Overhead Application, Overhead Variances, Journal Entries Plimpton Company produces countertop ovens. Plimpton uses a standard costing system. The standard costing system relies on direct labor hours to assign overhead costs to production. The direct labor standard indicates that two direct labor hours should be used for every oven produced. The normal production volume is 100,000 units. The budgeted overhead for the coming year is as follows: Fixed overhead $770,000 Variable overhead 446,000* *At normal volume. Plimpton applies overhead on the...

Montoursville Control Company, which manufactures electrical switches, uses a standard-costing system. The standard production overhead costs...

Montoursville Control Company, which manufactures electrical switches, uses a standard-costing system. The standard production overhead costs per switch are based on direct-labor hours and are as follows: Variable overhead (5 direct-labor hours @ $12.00 per hour) Fixed overhead (5 direct-labor hours @ $20.00 per hour)* Total overhead $ 60 100 $160 *Based on capacity of 304,000 direct-labor hours per month. The following information is available for the month of October. • Variable overhead costs were $4,500,000. • Fixed overhead costs...

Rondell Company uses a standard cost system. Indirect costs were budgeted at $196,000 plus $15 per...

Homework Answers

Add Answer to:
Rondell Company uses a standard cost system. Indirect costs were budgeted at $196,000 plus $15 per...

Post as a guest

Earn Coins

Question 24 Rondell Company uses standard cost system. Indirect costs were budgeted at $190,800 plus $13...

Rondell Company uses a standard cost system. Indirect costs were budgeted at $201,400 plus $13 per direct labour hour. The overhead rate is based on 10,600 hours. Actual results were: Standard direct labour hours allowed 9,400 Actual direct labour hour

Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied to units...

Sedona Company set the following standard costs for one unit of its product for this year...

Maxwell Company uses a standard cost accounting system and applies production overhead to products on the...

Milberg Co. uses absorption costing and standard costing to improve cost control. In 2016, the total...

H&X Co. uses a standard job cost system with a normal capacity of 27,000 direct labour hours. H&X Co. pr...

Milberg Co. uses absorption costing and standard costing to improve cost control. In 2016, the total...

Overhead Application, Overhead Variances, Journal Entries Plimpton Company produces countertop ovens. Plimpton uses a standard costing...

Montoursville Control Company, which manufactures electrical switches, uses a standard-costing system. The standard production overhead costs...

Rondell Company uses a standard cost system. Indirect costs were budgeted at $196,000 plus $15 per...

Homework Answers

Add Answer to: Rondell Company uses a standard cost system. Indirect costs were budgeted at $196,000 plus $15 per...

Post as a guest

Earn Coins

Add Answer to:
Rondell Company uses a standard cost system. Indirect costs were budgeted at $196,000 plus $15 per...