The Phelps Company applies overhead costs to products on the basis of standard direct labor-hours. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Phelps Company applies overhead costs to products on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit of product. Phelps Company had the following budgeted and actual data for March: Units produced. Direct labor-hours….......... Variable overhead costs........ Fixed overhead costs............... Actual 22,000 105,000 $91,000 $52,000 Budgeted 20,000 100,000 $80,000 $50,000 The budgeted direct labor-hours is used as the denominator activity for the month. Calculate Variable manufacturing overhead variances and Fixed overhead manufacturing variances. The Phelps Company applies overhead costs to products on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit of product. Phelps Company had the following budgeted and actual data for March: Units produced. Direct labor-hours….......... Variable overhead costs........ Fixed overhead costs............... Actual 22,000 105,000 $91,000 $52,000 Budgeted 20,000 100,000 $80,000 $50,000 The budgeted direct labor-hours is used as the denominator activity for the month. Calculate Variable manufacturing overhead variances and Fixed overhead manufacturing variances.
Expert Answer:
Answer rating: 100% (QA)
To calculate the variable manufacturing overhead variances and fixed overhead manufacturing variances well need to determine the standard cost per unit and the actual cost per unit first 1 Calculate the standard cost per unit Standard direct laborhours per unit 5 Variable overhead rate Budgeted variable overhead costs Budgeted direct laborhours 80000 100000 080 per direct laborhour Standard variable overhead cost per unit Variable overhead rate Standard direct laborhours per unit 080 5 400 2 Calculate the actual cost per unit Actual variable overhead rate Actual variable overhead costs Actual direct laborhours 91000 105000 0867 per direct laborhour Actual variable overhead cost per unit Actual variable overhead rate Standard direct laborhours per unit 0867 5 4335 3 Calculate the variable manufacturing overhead variances Variable overhead spending variance ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
In the real world, virtually all purchases involve some type of specialized investment. For instance, by driving to a particular supermarket, you invest time and gasoline that is valuable to you only...
-
Company ABC has two segments: hard drive and cloud drive. The company tracks the time of processing orders for two segments. The average times were recorded as follows: Hard Drive Segment Queue Time...
-
A device to throw a ball is constructed from a 1.51 m long rod that spins around an axis located at one end, and at the other end is a mechanism that releases the ball when the apparatus reaches 608...
-
y Working this on the www.bis.doc.gov website. "MY company makes fingerprinting powder kits for both domestic and external clients. It is a popular item in my inventory. I have a new customer in...
-
Find the pressure in an air bubble of diameter d = 4.0 m, located in water at a depth h = 5.0 m. The atmospheric pressure has the standard value Po.
-
Two particles in a high-energy accelerator experiment approach each other head-on with a relative speed of 0.890c. Both particles travel at the same speed as measured in the laboratory. What is the...
-
For a given x-value, the point estimate for a 95% confidence interval for the mean response is the same as the one for the 95% prediction interval. In Exercises 5 and 6, determine whether the...
-
A solar collector consists of a parallel plate channel that is connected to a water storage plenum at the bottom and to a heat sink at the top. The channel is inclined 0 = 30 from the vertical and...
-
Question 43 Part B Q1ii 20 points Save A a) A property is currently leased for $100,000 p.a. with fully recoverable outgoings. The lease has 3 years to run on the current (fixed) rent. The market...
-
Conrad Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Conrad Manufacturing's operations: Current assets as of December 31...
-
Discuss some internal controls that you would recommend to protect an organization's cash. What are some controls that you have seen past employers use? Were they effective? Why or why not? Explain...
-
On 1 April 2 0 1 6 , Amanah Berhad purchased a 2 5 - storey building for the investment purposes. The cost of the building was RM 8 9 , 0 0 0 , 0 0 0 . 0 0 and the building is expected to have a...
-
Even with relatively stable economies, the Gulf States are not immune to economic hardships. Let's take a moment to look at the economic "underbelly" of the sub-region for a moment. Which of the...
-
At December 31, Hawke Company reports the following results for its calendar year, Cash sales $640,000 Credit sales $ 1,600,000 In addition, its unadjusted trial balance includes the following items....
-
Economic Theory uses a lot of simplification to get to its key analytical points. One type of simplification is an assumption that economic actors are sensitive to changes in the price and supply of...
-
Instructions Balances at 3 1 January 2 0 0 9 : Debtors control account.............................$ 3 2 , 4 0 0 Creditors control account...........................$ 2 5 , 2 0 0...
-
why this quote is important for companies committed to identifying toxic leadership and its impact on employees, services, brands, and customers.Explain.
-
A copper wire (density = 8.96 g/cm 3 ) has a diameter of 0.25 mm. If a sample of this copper wire has a mass of 22 g, how long is the wire?
-
Refer to the illustration of overhead application in the Midtown Advertising Agency on pp.106107. Suppose the firm used a single cost driver, total staff compensation, to apply overhead costs to each...
-
Hiawatha Hydrant Company manufactures tire hydrants in Oswego, New York. The following information pertains to operations during May. Processing time (average per batch) ...........8.5 hours...
-
What will happen to a companys break-even point if the sales price and unit variable cost of its only product increase by the same dollar amount?
-
Describe the process of valuing the entrepreneurs ownership interest in a two-stage investment. Refer to Tables 13.10 and 13.13. Data from table 13.10 Data from table 13.13 Market potential...
-
Euro Exchange Rates. The exchange rate that we consider is the amount of euros that one can purchase for one U.S. dollar. We have \(T=699\) daily observations from the period April 1, 2005, through...
-
Evaluate the current yield curve level and structure using the following screens: a. YCRV or GC to access yield curves. b. FWCV to determine implied forward rates. c. USoo03M, USoo06M, USoo09M, and...
Study smarter with the SolutionInn App