Supervision = $16,000
Utilities = $6,200
Depreciation = $7,200
Total Fixed overhead = $29,400
Total Variable overhead per unit = ($13,440 + $24,360) / 2,800 Machine-hours
= $13.50 per Machine hour
Total overhead cost at 2,700 machine hours =
(2,700 * $13.50) + $29,400
= $65,850
Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 2,800 machine-...
Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 2,500 machine-hours Variable overhead costs: Supplies $ 11,250 Indirect labor 21,000 Fixed overhead costs: Supervision 15,700 Utilities 5,900 Depreciation 6,900 Total overhead cost $ 60,750 The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 2,400 machine-hours rather than 2,500 machine-hours? Multiple Choice $58,870 $58,320 $59,460 $60,750
Webb, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: $5.00 2.50 Indirect labor Indirect materials Maintenance Utilities .50 .30 Fixed overhead costs per month are: Supervision Insurance Property taxes Depreciation $1,200 400 600 1,800 The company believes it will normally operate in a range of 4,000 to 8,000 machine hours per month. During the month of August, 2019, the company incurs the following manufacturing overhead costs:...
Lossing Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below: Original Budget Actual Costs $ $ 7,800 10,720 7,990 10,070 Variable overhead costs: Supplies Indirect labor Fixed overhead costs: Supervision Utilities Factory depreciation Total overhead cost 15,610 14,900 59,970 $109,000 14,490 14,950 61,040 $108,540 The company based its original budget on 7,800 machine-hours. The company actually worked 7,760 machine-hours during the month. The standard hours...
If you access /review and understand the formulas for each of the variances on the handout sheet provided, you should be able to do well on the quiz. Stock Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 6,900 machine-hours mo 21,290 41,400 Variable overhead costs: Supplies Indirect labor Fixed overhead costs: Supervision Utilities Depreciation Total overhead cost 14,600 3,500 6,700 87,490 The company's variable overhead costs are driven by machine-hours. 17 What would be the...
Clampit Company hour are as follows: uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine Indirect labor $5.00 Indirect materials $2.10 Maintenance $0.50 Utilities $0.40 Fixed overhead costs per month are Supervision $1,200 Insurance $400 Property taxes $600 Depreciation $1,800 The company believes it will normally operate in a range of 4,000 to 8,000 machine hours per month. During the month of June 2020, the company incurs the following manufacturing overhead costs:...
Catalytic Chemical Corporation has a significant level of manufacturing overhead. After preparing their budget for the next year, management expects the following overhead costs (the cost driver for each overhead cost pool is also shown): Activity Total Cost Cost Driver Maintenance $20,000 Machine hours Materials receiving 80,000 Shipments received Machine setups 50,000 # of setups Inspection 30,000 # of inspections The expected activity for the year for various cost drivers is: Direct Labor Hours 40,000 Machine Hours 20,000 Shipments Received...
Crosshill Company’s total overhead costs at various levels of activity are presented below: Month Machine-Hours Total Overhead Cost April 54,000 $188,180 May 44,000 $163,980 June 64,000 $212,380 July 74,000 $236,580 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 44,000-machine-hour level of activity in May is as follows: Utilities (variable) $ 52,800 Supervisory salaries (fixed) 44,000 Maintenance (mixed) 67,180 Total overhead cost $ 163,980 The...
Crosshill Company’s total overhead costs at various levels of activity are presented below: Month Machine-Hours Total Overhead Cost April 54,000 $188,180 May 44,000 $163,980 June 64,000 $212,380 July 74,000 $236,580 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 44,000-machine-hour level of activity in May is as follows: Utilities (variable) $ 52,800 Supervisory salaries (fixed) 44,000 Maintenance (mixed) 67,180 Total overhead cost $ 163,980 The...
The condensed form of Nordstrop Company’s flexible budget for manufacturing overhead follows: Cost Machine-Hours Formula Overhead Costs (per machine-hour) 7,500 8,500 9,500 Variable cost $ 1.35 $ 10,125 $ 11,475 $ 12,825 Fixed cost 15,000 15,000 15,000 Total overhead cost $ 25,125 $ 26,475 $ 27,825 The following information is available for a recent period: The denominator activity of 7,500 machine-hours was chosen to compute the predetermined overhead rate. At the 7,500 standard machine-hours level of activity, the company should...
Wadding Corporation applies manufacturing overhead to products on the basis of standard machine-hours. For the most recent month, the company based its budget on 4,600 machine-hours. Budgeted and actual overhead costs for the month appear below: Original Budget Based on 4,600 Machine-Hours Actual Costs Variable overhead costs: Supplies $ 11,880 $ 12,830 Indirect labor 40,100 40,800 Fixed overhead costs: Supervision 20,700 20,340 Utilities 6,900 6,870 Factory depreciation 7,900 8,210 Total overhead cost $ 87,480 $ 89,050 The company actually worked...