Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
Total budgeted fixed overhead cost for the year | $ | 501,600 |
Actual fixed overhead cost for the year | $ | 495,000 |
Budgeted direct labor-hours (denominator level of activity) | 66,000 | |
Actual direct labor-hours | 67,000 | |
Standard direct labor-hours allowed for the actual output | 64,000 | |
Required:
1. Compute the fixed portion of the predetermined overhead rate for the year. (Round Fixed portion of the predetermined overhead rate to 2 decimal places.)
2. Compute the fixed overhead budget variance and volume variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values.)
|
(1)
Fixed portion of the predetermined overhead rate = Total budgeted fixed overhead cost/Budgeted direct labor-hours
= $501600/$66000
= $7.6
(2)
(Fixed overhead) budget variance = budgeted fixed overhead cost - Actual fixed overhead cost
= $501600 - $495000
= $6600 Favorable
(3)
(Fixed overhead) volume variance = Fixed portion of the predetermined overhead rate x (Standard direct labor-hours - Actual direct labor-hours
= $7.6 x (64000 - 67000)
= $22800 Unfavorable
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct lab...
Check Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output $ 501,600 $495.000 66,000 67,000 66.000 Required: 1. Compute the...
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output $ 515,900 $ 509,000 67,000 68,000 65,000 Required: 1. Compute the...
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Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year $ 433,100 Actual fixed overhead cost for the year $ 425,000 Budgeted direct labor-hours (denominator level of activity) 61,000 Actual direct labor-hours 62,000 Standard direct labor-hours allowed for the actual output 59,000 Required: 1. Compute the...
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output $467,500 $458,000 55,000 56,000 53,000 Required: 1. Compute the fixed portion...
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Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output $ 459,900 $ 453,000 63,000 64,000 61,000 Required: 1. Compute the...
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor- hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output $ 420,000 $ 415,000 60,000 61,000 58,000 Required: 1. Compute...
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: 481, 600 472, 000 Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output 56, 000 57, 000 54, 000 Required:...