R&N Manufacturing produces music boxes. The fixed overhead rate is $5.10 per direct labor hour, and the company budg...
R&N Manufacturing produces music boxes. The fixed overhead rate is $5.10 per direct labor hour, and the company budgeted for 4,600 direct labor hours this year. During the year, R&N produced 2,500 music boxes using 4,800 direct labor hours. Actual fixed overhead for the year was $23,000. What is the company's fixed overhead spending variance?
A, $460 Favorable
B. $460 Unfavorable
C. $1,480 Favorable
D. $1,480 Unfavorable
(Answer B is incorrect, also show all steps involved with the calculation)
Homework Answers
Solution:
Fixed overhead spending variance = Budgeted fixed overhead - Actual fixed overhead
= (4600*$5.10) - $23,000 = $460 Favorable
Hence option A is correct.
Add Answer to:
R&N Manufacturing produces music boxes. The fixed overhead rate is $5.10 per direct labor hour, and the company budg...
Prado Company applies fixed manufacturing overhead costs to products based on direct labor hours. Information for the mo...
Prado Company applies fixed manufacturing overhead costs to products based on direct labor hours. Information for the month of April appears below. Prado's expected to produce and sell 500 units for the month. Budgeted fixed overhead costs $240,000 Budgeted direct labor hours ÷ 12,000 Standard cost per direct labor hour $ 20 Standard direct labor hours per unit 18 Actual production 520 units Actual fixed overhead costs $210,000 Required: Calculate the fixed overhead spending variance and production volume variance. Clearly...
QUESTION 21 Fixed overhead was budgeted at $200,000, and 25,000 direct labor hours were budgeted. If...
QUESTION 21 Fixed overhead was budgeted at $200,000, and 25,000 direct labor hours were budgeted. If the fixed overhead volume variance was $8,000 favorable and the fixed overhead spending variance was $6,000 unfavorable, fixed overhead applied must be $208,000. $206,000. $202,000. $194,000. 4.5 points Save Answer
Willow Inc. has provided the following information: Standards: Direct materials Direct labor Variable overhead Fixed overhead...
Willow Inc. has provided the following information: Standards: Direct materials Direct labor Variable overhead Fixed overhead Total Per unit 10 lbs @ $2.90/lb $ 29.00 2 hours @ $17.50/hour 35.00 2 hours @ $11/hour 22.00 25.00 $111.00 Budgeted production = 7,300 units 75,050 lbs 14,100 actual hours Actual results Materials Direct labor Variable overhead Fixed overhead Units produced $216,015 $236,815 $ 161,570 $179,860 7,500 units a. Calculate the direct materials price variance. (Do not round your intermediate calculations. Indicate the...
Culver, Inc. manufacturers motors used in electric toothbrushes and other small appliances. Culver's fixed overhead rate...
Culver, Inc. manufacturers motors used in electric toothbrushes and other small appliances. Culver's fixed overhead rate is $7.60 and the company budgeted 165,000 direct labor hours for the year. During the year Culver produced 320,000 motors and used 164,000 direct labor hours.Culver's fixed overhead spending variance was $3,500 unfavorable for the year. What was Culver's actual fixed overhead for the year? A. $1,250,000 B. $1,257,000 C. $1,246,000 D. $1,249,000 (Answer C is incorrect, also show all steps involved in the...
Overhead Application, Fixed and Variable Overhead Variances Zepol Company is planning to produce 600,000 power drills...
Overhead Application, Fixed and Variable Overhead Variances Zepol Company is planning to produce 600,000 power drills for the coming year. The company uses direct labor hours to assign overhead to products. Each drill requires 0.75 standard hour of labor for completion. The total budgeted overhead was $1,777,500. The total fixed overhead budgeted for the coming year is $832,500. Predetermined overhead rates are calculated using expected production, measured in direct labor hours. Actual results for the year are: Actual production (units)...
ABC Company has the following standards and flexible budget data: Standard Variable Overhead Rate $5.40 Per...
ABC Company has the following standards and flexible budget data: Standard Variable Overhead Rate $5.40 Per direct labour hour Standard quantity of direct labor $1.80 hours per unit of output Budgeted fixed overhead rate $100,000 Budgeted Output 25,000 units Standard Variable Overhead $10.80 per unit Standard Fixed Overhead $3.60 per unit Actual Results for November are given below: Actual Output 30,000 units Actual variable overhead $360,000 Actual Fixed Overhead $106,000 Actual Direct Labor 56,000 hours REQUIRED: A) Variable manufacturing overhead...
Morton Company’s budgeted variable manufacturing overhead is $2.50 per direct labor-hour and its ...
Morton Company’s budgeted variable manufacturing overhead is
$2.50 per direct labor-hour and its budgeted fixed manufacturing
overhead is $180,000 per year.
The company manufactures a single product whose standard direct
labor-hours per unit is 2.5 hours. The standard direct labor wage
rate is $10 per hour. The standards also allow 3 feet of raw
material per unit at a standard cost of $7 per foot.
Although normal activity is 60,000 direct labor-hours each year,
the company expects to operate at...
Direct Materials, Direct Labor, and Reports budgeted and actual costs for variable and fixed factory overhead...
Direct Materials, Direct Labor, and Reports budgeted and actual costs for variable and fixed factory overhead along with the related controllable and volume variances.Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. A detailed estimate of what a product should cost.Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 70,000 units of product were as follows: Standard Costs Actual Costs Direct materials 189,000 lbs. at $6.00 187,100...
Glavine & Co. produces a single product, each unit of which requires three direct labor hours...
Glavine & Co. produces a single product, each unit of which
requires three direct labor hours (DLHs). Practical capacity (for
setting the factory overhead application rate) is 58,000 DLHs, on
an annual basis. The information below pertains to the most recent
year:
Standard direct labor hours (DLHs) per unit produced
3.00
Practical capacity, in DLHs (per year)
58,000
Variable overhead efficiency variance
$
19,000
unfavorable (U)
Actual production for the year
16,500
units
Budgeted fixed manufacturing overhead
$
1,160,000
Standard...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.10 Indirec...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.10 Indirect materials 0.70 Utilities 0.40 Fixed overhead costs per month are Supervision $4100, Depreciation $2000, and Property Taxes $500. The company believes it will normally operate in a range of 7100-12800 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs. Variable Costs Fixed...
QUESTION 21 Fixed overhead was budgeted at $200,000, and 25,000 direct labor hours were budgeted. If the fixed overhead volume variance was $8,000 favorable and the fixed overhead spending variance was $6,000 unfavorable, fixed overhead applied must be $208,000. $206,000. $202,000. $194,000. 4.5 points Save Answer
Willow Inc. has provided the following information: Standards: Direct materials Direct labor Variable overhead Fixed overhead Total Per unit 10 lbs @ $2.90/lb $ 29.00 2 hours @ $17.50/hour 35.00 2 hours @ $11/hour 22.00 25.00 $111.00 Budgeted production = 7,300 units 75,050 lbs 14,100 actual hours Actual results Materials Direct labor Variable overhead Fixed overhead Units produced $216,015 $236,815 $ 161,570 $179,860 7,500 units a. Calculate the direct materials price variance. (Do not round your intermediate calculations. Indicate the...
Overhead Application, Fixed and Variable Overhead Variances Zepol Company is planning to produce 600,000 power drills for the coming year. The company uses direct labor hours to assign overhead to products. Each drill requires 0.75 standard hour of labor for completion. The total budgeted overhead was $1,777,500. The total fixed overhead budgeted for the coming year is $832,500. Predetermined overhead rates are calculated using expected production, measured in direct labor hours. Actual results for the year are: Actual production (units)...
Morton Company’s budgeted variable manufacturing overhead is
$2.50 per direct labor-hour and its budgeted fixed manufacturing
overhead is $180,000 per year.
The company manufactures a single product whose standard direct
labor-hours per unit is 2.5 hours. The standard direct labor wage
rate is $10 per hour. The standards also allow 3 feet of raw
material per unit at a standard cost of $7 per foot.
Although normal activity is 60,000 direct labor-hours each year,
the company expects to operate at...
Glavine & Co. produces a single product, each unit of which
requires three direct labor hours (DLHs). Practical capacity (for
setting the factory overhead application rate) is 58,000 DLHs, on
an annual basis. The information below pertains to the most recent
year:
Standard direct labor hours (DLHs) per unit produced
3.00
Practical capacity, in DLHs (per year)
58,000
Variable overhead efficiency variance
$
19,000
unfavorable (U)
Actual production for the year
16,500
units
Budgeted fixed manufacturing overhead
$
1,160,000
Standard...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.10 Indirect materials 0.70 Utilities 0.40 Fixed overhead costs per month are Supervision $4100, Depreciation $2000, and Property Taxes $500. The company believes it will normally operate in a range of 7100-12800 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs. Variable Costs Fixed...
Most questions answered within 3 hours.
-
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 21 minutes ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 38 minutes ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 38 minutes ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 44 minutes 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 51 minutes ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 46 minutes ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 47 minutes ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 51 minutes ago -
Would CuCO3 aqueous salt combined with calcium chloride
form a solid precipitate? If so, what would...
asked 50 minutes ago -
How do ECM Solutions assist in embedding a culture of continuous
improvement in an organization? (Project...
asked 1 hour ago -
Directions
These directions introduce the idea of Essential Questions.
Since this may be a new concept...
asked 1 hour ago -
1.b. Fiscal policy is said to suffer from ‘crowding out’.
Explain what this means and why...
asked 1 hour ago