Homework Answers
Standard cost is a estimated cost per unit of the product under a specific circumstances. While deciding the standard cost, level of production and capacity of the organisation, estimated demand for the product, availability of the material at a particular price and quantity, quality, availability of the labor, its wage rate and efficiency, overheads expenses, variable and fixed.
Purpose of the Standard cost
Standard cost can be use for the purpose of preparing the budget
It can be used for the cost controlling and for motivating the officers to perform within the standard cost.
it can promote possible cost reduction hence profit can be increased
cost can be consistent to the product which can keep the price of the product consistent which creates the trust among the customers.
2. If the variable manufacturing overheads are allocated based on machine hours then , due to following reasons, overheads efficiency variance can be favourable:
- the equipment employed is more effective and saves the machine hours
- Material is of high quality which is easy to process and saves the processing time
- highly skilled labor plans the machine usage in better manner and schedule the processing in more efficient manner
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Can I have an answers for questions 1 and 2 please Discussions What is a standard cost and what are its purposes? 2....
can i have an answers for discussion questions 1 and 2 Discussions 1. What is a...
can
i have an answers for discussion questions 1 and 2
Discussions 1. What is a standard cost and what are its purposes? 2. Assume variable manufacturing overhead is allocated using machine hours. Give three possible reasons for a favourable overhead efficiency variance
The Taravez Company uses standard costing in its manufacturing plant for auto parts. The standard cost...
The Taravez Company uses standard costing in its manufacturing plant for auto parts. The standard cost of a particular auto part, based on a denominator level of 3,900 output units per year, included 5 machine-hours of variable manufacturing overhead at $7 per hour and 5 machine-hours of fixed manufacturing overhead at $16 per hour. Actual output produced was 4,300 units. Variable manufacturing overhead incurred was $260,000. Fixed manufacturing overhead incurred was $265,000. Actual machine-hours were 30,000. Requirements 1. Prepare an...
The Tavarez Company uses standard costing in its manufacturing plant for auto parts. The standard cost...
The Tavarez Company uses standard costing in its manufacturing plant for auto parts. The standard cost of a particular auto part, based on a denominator level of 3.700 output units per year, included 6 machine-hours of variable manufacturing overhead at $0 per hour and machine-hours of fixed manufacturing overhead at $14 per hour. Actual output produced was 4,000 units. Variable manufacturing overhead incurred was $255,000. Fixed manufacturing overhead incurred was $373.000 Actual machine-hours were 26,500 Read the requirements Requirement 1....
The Lopez Company uses standard costing in its manufacturing plant for auto parts. The standard cost of a particular aut...
The Lopez Company uses standard costing in its manufacturing plant for auto parts. The standard cost of a particular auto part, based on a denominator level of 4,000 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 4,400 units. Variable manufacturing overhead incurred was $245,000. Fixed manufacturing overhead incurred was $373,000. Actual machine-hours were 28,400. 1. Prepare an analysis...
Norwall Company's variable manufacturing overhead should be $1.95 per standard machine-hour and its fixed manufacturing overhead...
Norwall Company's variable manufacturing overhead should be $1.95 per standard machine-hour and its fixed manufacturing overhead should be $36,036 per month. The following information is available for a recent month: a. The denominator activity of 18,480 machine-hours is used to compute the predetermined overhead rate. b. At the 18,480 standard machine-hours level of activity, the company should produce 6,600 units of product. c. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost...
Norwall Company’s budgeted variable manufacturing overhead cost is $1.30 per machine-hour and its budgeted fixed manufacturing...
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...
2. Fortes Inc. has provided the following data concerning one of the products in its standard...
2.
Fortes Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Direct materials Direct labor Variable manufacturing overhead Standard Quantity or Hours per Unit of Output 7.1 ounces 0.6 hours 0.6 hours Standard Price or Rate $ 7.30 per ounce $26.70 per hour $ 5.60 per hour The company has reported the following actual results for the product for...
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...
Norwall Company's budgeted variable manufacturing overhead cost is $1.40 per machine-hour and its budgeted fixed manufacturing...
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...
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...
can
i have an answers for discussion questions 1 and 2
Discussions 1. What is a standard cost and what are its purposes? 2. Assume variable manufacturing overhead is allocated using machine hours. Give three possible reasons for a favourable overhead efficiency variance
The Tavarez Company uses standard costing in its manufacturing plant for auto parts. The standard cost of a particular auto part, based on a denominator level of 3.700 output units per year, included 6 machine-hours of variable manufacturing overhead at $0 per hour and machine-hours of fixed manufacturing overhead at $14 per hour. Actual output produced was 4,000 units. Variable manufacturing overhead incurred was $255,000. Fixed manufacturing overhead incurred was $373.000 Actual machine-hours were 26,500 Read the requirements Requirement 1....
Norwall Company's variable manufacturing overhead should be $1.95 per standard machine-hour and its fixed manufacturing overhead should be $36,036 per month. The following information is available for a recent month: a. The denominator activity of 18,480 machine-hours is used to compute the predetermined overhead rate. b. At the 18,480 standard machine-hours level of activity, the company should produce 6,600 units of product. c. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost...
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...
2.
Fortes Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Direct materials Direct labor Variable manufacturing overhead Standard Quantity or Hours per Unit of Output 7.1 ounces 0.6 hours 0.6 hours Standard Price or Rate $ 7.30 per ounce $26.70 per hour $ 5.60 per hour The company has reported the following actual results for the product for...
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...
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...
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