1) | ||||||||||
predetermined overhead rate | 11.6 | |||||||||
variable rate | 3.8 | |||||||||
fixed rate (1,287,000/165000) | 7.8 | |||||||||
2) | ||||||||||
Direct materials | 4 | pounds at | 7.5 | per pound | 30 | |||||
Direct labor | 1.5 | DLH'S | 12.9 | per DLH | 19.35 | |||||
Variable overhead | 1.5 | DLH'S at | 3.8 | per DLH | 5.7 | |||||
Fixed overhead | 1.5 | DLH'Sat | 7.8 | per DLH | 11.7 | |||||
Standard cost per unit | 66.75 | |||||||||
3) | ||||||||||
Standard direct labor hours allowed for the years production= | ||||||||||
Actual units produced *Direct labor hr per unit | ||||||||||
132000*1.5 | ||||||||||
198000 | ||||||||||
3b) | ||||||||||
Manufacturing overhead T-Account | ||||||||||
Actual costs | 1813350 | Applied costs (198000*11.6) | 2296800 | |||||||
overhead overapplied | 483450 | |||||||||
4) | ||||||||||
Variable overhead rate variance = (AR- Std rate)*AH | ||||||||||
=(493350 -214500*3.8) | ||||||||||
321750 | F | |||||||||
Variable overhead efficiency variance = (AH-SH)*SR | ||||||||||
= | (214,500-198000)*3.8 | |||||||||
62700 | U | |||||||||
Fixed overhead budget variance = actual overhead - budgeted oveerhead | ||||||||||
1,320,000-1,287,000 | ||||||||||
33000 | U | |||||||||
fixed overhead volume variance= actual output*fixed overhead rate per unit-budgeted overhead | ||||||||||
132000*11.7-1,287,000 | ||||||||||
257,400 | F | |||||||||
21 Lane Company manufactures a single product that requires a great deal of hand labor. Overhead...
21 Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost is applied on the basis of standard direct labor-hours. The budgeted variable manufacturing overhead is $3.80 per direct labor-hour and the budgeted fixed manufacturing overhead is $1,287,000 per year. 10 points The standard quantity of materials is 4 pounds per unit and the standard cost is $7.50 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate...
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