It was the end of the first quarter, and Sharon was evaluating the company's manufacturing overhead...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
It was the end of the first quarter, and Sharon was evaluating the company's manufacturing overhead cost situation. She recalled the heated discussions during the budget meetings at the end of the prior year as managers thoroughly considered their options. The resulting annual budgeted variable-MOH cost of $34,800 and budgeted fixed-MOH cost of $55,100 support a planned volume of 5,800 units. Standards were also set at that time for the cost driver, machine hours, where each unit should use 1.25 machine hours. At the end of this first quarter, the company had used 1.920 machine hours in its production of 1,500 units. Actual variable-MOH costs incurred thus far were $8,640, and total fixed-MOH costs thus far totaled $13,344. (a) Calculate the budgeted variable-MOH rate per machine hour and standard variable-MOH cost per unit. Do the same for fixed- MOH. (Round answers to 2 decimal places, e.g. 15.25.) Budgeted MOH rates for the year Standard cost cards +A Variable-MOH Fixed-MOH Determine the fixed-MOH price and volume variances for this first quarter. Fixed-MOH price variance $ Fixed-MOH volume variance $ It was the end of the first quarter, and Sharon was evaluating the company's manufacturing overhead cost situation. She recalled the heated discussions during the budget meetings at the end of the prior year as managers thoroughly considered their options. The resulting annual budgeted variable-MOH cost of $34,800 and budgeted fixed-MOH cost of $55,100 support a planned volume of 5,800 units. Standards were also set at that time for the cost driver, machine hours, where each unit should use 1.25 machine hours. At the end of this first quarter, the company had used 1.920 machine hours in its production of 1,500 units. Actual variable-MOH costs incurred thus far were $8,640, and total fixed-MOH costs thus far totaled $13,344. (a) Calculate the budgeted variable-MOH rate per machine hour and standard variable-MOH cost per unit. Do the same for fixed- MOH. (Round answers to 2 decimal places, e.g. 15.25.) Budgeted MOH rates for the year Standard cost cards +A Variable-MOH Fixed-MOH Determine the fixed-MOH price and volume variances for this first quarter. Fixed-MOH price variance $ Fixed-MOH volume variance $
Expert Answer:
Answer rating: 100% (QA)
To calculate the budgeted variableMOH rate per machine hour divide the budgeted variableMOH cost by ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
master budget case camdrone as part of the continued advancement of technology, a drone camera market has emerged in recent years the drone camera market has been growing as more photography...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
During the year, the following events occurred: 1. Drew purchased raw materials costing $86,000 on account. 2. Drew used $93,000 of raw materials in production. Of these, 70% were classified as...
-
Gandhi Ltd renders a promotional service to small retailing businesses. There are three levels of service: the basic, the standard and the comprehensive. On the basis of past experience, the business...
-
Determine the total entropy change and energy destruction associated with the process described in Prob. 1386, using (a) the ideal-gas approximation and (b) Kays rule. Assume constant specific heats...
-
Distinguish between accountability and interperiod equity.
-
Journalize the following transactions of Cramer, Inc., which ends its accounting year on June 30: Apr 1 Jun 6 30 Loaned $20,000 cash to R. Simpson on a one-year, 8% note. Sold goods to Friday, Corp.,...
-
Big Sky Sports sells hunting and fishing equipment and provides guided hunting and fishing trips. Big Sky Sports is owned and operated by Joe Flannery, a well-known sports enthusiast and hunter....
-
White Financial Services Corporation is engaged in mortgage origination and investment servicing activities with annual revenues of more than $90 million. Roberta White, CEO, recently has discovered...
-
In early 20X1, Mr. Carpet purchased $200,000 of common shares in a company listed on thelocal stock exchange, with an annual eligible dividend of $5,000. The current fair market value of the shares...
-
Legend has it that, in 1971, two college students at Yale University used a large slingshot (made with 8 2-metre lengths of surgical rubber) to launch a loaf of frozen bread over their college...
-
The probability that an electronic component will fail in less than 1,000 hours of continuous use is 0.25 . Use the normal approximation to find the probability that among 200 such components fewer...
-
A data mining routine has been applied to a transaction dataset and has classified 88 records as fraudulent (30 correctly so) and 952 as nonfraudulent ( 920 correctly so). Construct the...
-
The null and alternative hypotheses for a test are given as well as some information about the actual sample(s) and the statistic that is computed for each randomization sample. Indicate where the...
-
Social media ha, given a boost to the artisan and craft trades. Many people embrace pastimes such as beer brewing, bread making, and pottery making. Social media provides both mechanism for ...
-
If lizards adapt their behavior to the fire ants, then lizards from the invaded habitats should twitch more than lizards from uninvaded habitats when exposed to red imported fire ants (twitching...
-
3. Suppose that on January 2, 2019, the U.S. Treasury auctioned the following four T-Bills: 28-Day 91-Day 182-Day 270-Day 1/2/2019 1/2/2019 1/2/2019 1/2/2019 1/30/2019 4/3/2019 7/3/2019 9/29/2019...
-
A test car is driven a fixed distance of n miles along a straight highway. (Here n Z+.) The car travels at one mile per hour for the first mile, two miles per hour for the second mile, four miles...
-
Team Spirit Calendars imprints calendars with college names. The company has fixed expenses of $ 1,095,000 each month plus variable expenses of $ 6.50 per carton of calendars. Of the variable...
-
Fitness Mania is a small technology start- up company that specializes in personal fitness mobile apps. The three founders have been working hard on the company for the past two years since they...
-
Refer to the Holiday Inn scatter plot in S6-11. 1. Would the high- low method or regression analysis result in a more accurate cost equation for the data pictured in the scatter plot? Explain. 2. A...
-
An axial flow fan balanced at one speed often exhibits substantial vibrational effects when operated at other speeds, mainly due to (a) primary critical speed effect (b) secondary critical speed...
-
In the case of an involute toothed gear, involute starts from (a) addendum circle (b) dedundum circle (c) pitch circle (d) base circle.
-
In the epicyclic gear train shown in the given Fig. \(33, A\) is fixed. \(A\) has 100 teeth and \(B\) has 20 teeth. If the arm \(C\) makes three revolutions, the number of revolutions made by \(B\)...
Study smarter with the SolutionInn App