Question

Morton Company's budgeted variable manufacturing overhead is $2.00 per direct labor-hour and its budgeted fixed manufacturing overhead is $340,000 per year. The company manufactures a single product whose standard direct labor-hours per unit is 3.5 hours. The standard direct labor wage rate is $10 per hour. The standards also allow 5 feet of raw material per unit at a standard cost of $5 per foot. Although normal activity is 68,000 direct labor-hours each year, the company expects to operate at a 50,000-hour level of activity this year Required: 1. Assume that the company chooses 50,000 direct labor-hours as the denominator level of activity. Compute the predetermined overhead rate, breaking it down Into variable and fixed cost elements. 2. Assume that the company chooses 68,000 direct labor-hours as the denominator level of activity. Compute the predetermined overhead rate, breaking it down into variable and fixed cost elements. 3. Complete two standard cost cards as outlined below 4. Assume that the company actually produces 17,000 units and works 60000 direct labor-hours during the year. Actual manufacturing overhead costs for the year are: Variable manufacturing overhead cont Tixed manufacturing overhead cost Total manufacturing overhead cost s 129,700 343 300 473,000 a. Compute the standard direct labor-hours allowed for this years production b. Complete the Manufacturing Overhead T-account below. Assume that the company uses 50.000 direct labor-hours (normal activity) as the denominator activity figure in computing predetermined overhead rates, as you have done in (1) above. c. Determine the cause of the underapplied or overapplied overhead for the year by computing the variable overhead rate and efficiency variances and the fixed overhéad budget and volume variances. Complete this question by entering your answers in the tabs below Req 1 Req 2 Req 3 Req 4A Req 48 Req 4C Determine the cause of the underapplied or overapplied overhead for the year by computing the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances. (Indicate the effect of each variance by selecting r for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero vanance). Input all amounts as positive values.) Varable overhead rate variance 473,000 ompute the standard direct labor-hours allowed for this year's production. omplete the Manufacturing Overhead T-account below. Assume that the company uses 50,000 direct labor-hours he denominator activity figure in computing predetermined overhead rates, as you have done in (1) above. etermine the cause of the underapplied or overapplied overhead for the year by computing the variable overhead ciency variances and the fixed overhead budget and volume variances. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 48 Req 4C Assume that the company chooses 50,000 direct labor-hours as the denominator level of activity. Compute the predetermined overhead rate, breaking it down into variable and fixed cost eleme nts. (Round your answers to 2 decimal places.) Prodetermined overhead rate Variable element Fixed element per DLH per DLH per DLH Req 2 > Variable manufacturing overhead cost Fixed manufacturing overhead cost Total nanufacturing overhead cost 129,700 343, 300 473,000 a. Compute the standard direct labor-hours allowed for this year's production b. Complete the Manufacturing Overhead T-account below. Assume that the company uses 50.000 direct labor-hours (normal activity) as the denominator activity figure in computing predetermined overhead rates, as you have done in (1) above. c. Determine the cause of the underapplied or overapplied overhead for the year by computing the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances. Complete this question by entering your answers in the tabs below Req 1 Req 2 Req 3 Req 4A Req 48 Req 4C Complete two standard cost cards as outlined below. (Round your answers to 2 decimal places ) Denominator Activity: 50,000 DLHs 68,000 DLHs Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit 0.00 0.00 C Req 2 Req 4A U uNeLt labor-hours as the denominator level of activity. Compute the predete u Tale, breaking it down into variable and fixed cost elements. ssume that the company chooses 68,000 direct labor-hours as the denominator level of activity. Compute the predete rhead rate, breaking it down into variable and fixed cost elements. Complete two standard cost cards as outlined below. Assume that the company actually produces 17,000 units and works 60,000 direct labor-hours during the year. Actual ma erhead costs for the year are: Variable manufacturing overhead cost129,700 Fixed manufacturing overhead cost Total manufacturing overhead cost 473,000 a. Compute the standard direct labor-hours allowed for this year's production. b. Complete the Manufacturing Overhead T-account below. Assume that the company uses 50,000 direct labor-hours (normal a as the denominator activity figure in computing predetermined overhead rates, as you have done in () above. c. Determine the cause of the underapplied or overapplied overhead for the year by computing the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances. Complete this question by entering your answers in the tabs below. Req 4B Req 4C Req 1 Req 2 Req 3 Req 4A Compute the standard direct labor-hours allowed for this year's production. urs allowed for this year's production Req 4B Req 3 Saved Variable manufacturing overhead cost Fixed manufacturing overhead cost 129,700 343,300 $473,000 Total manufacturing overhead cost Computé the standard direct labor-hours allowed for this year's production. . Complete the Manufacturing Overhead T-account below. Assume that the company uses 50,000 direct labor-hours (nor s the denominator activity figure in computing predetermined overhead rates, as you have done in () above. . Determine the cause of the underapplied or overapplied overhead for the year by computing the variable overhead rate efficiency varlances and the fixed overhead budget and volume variances. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 48 Req 4C Complete the Manufacturing Overhead T-account below. Assume that the company uses 50,000 direct labor-hours (normal activity) as the denominator activity figure in computing predetermined overhead rates, as you have done in (1) above. Manufacturing Overhead 473,000 473,000 Req 4C >

Answer 1

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