Sedona Company set the following standard costs for one unit of its product for this year....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sedona Company set the following standard costs for one unit of its product for this year. Direct material (30 pounds @ $2.00 per pound) Direct labor (20 hours @ $4.50 per DLH) Variable overhead (20 hours @ $2.90 per DLH) Fixed overhead (20 hours @ $1.20 per DLH) Standard cost per unit S 60.00 90.00 58.00 24.00 $ 232.00 The $4.10 ($2.90 + $1.20) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 40.950 units, which is 65% of the factory's capacity of 63,000 units per month. The following monthly flexible budget information is available. Operating Levels (% of Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead Variable overhead capacity) 60% 65% 37,800 40,950 70% 44,100 756,000 819,000 882,000 S $ S Fixed overhead Total overhead 2,192,400 2,375,100 2,557,800 982,800 982,800 982,800 $ S 3,175,200 3,357,900 3,540,600 During the current month, the company operated at 60% of capacity, direct labor of 726,000 hours were used, and the following actual overhead costs were incurred. Actual variable overhead $ 2,120,000 Actual fixed overhead 1,065,000 Actual total overhead 3,185,000 Exercise 23-27A (Algo) Computing total variable and fixed overhead variances LO P5 1. Compute the total variable overhead variance and identify it as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. 2. Compute the total fixed overhead variance and identify it as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. ---At 60% of Operating Capacity-... Standard Direct Labor Hours Overhead Rate Standard Direct Labor Hours Standard Overhead Actual Overhead Applied Favorable or Overhead Variance Unfavorable Sedona Company set the following standard costs for one unit of its product for this year. Direct material (30 pounds @ $2.00 per pound) Direct labor (20 hours @ $4.50 per DLH) Variable overhead (20 hours @ $2.90 per DLH) Fixed overhead (20 hours @ $1.20 per DLH) Standard cost per unit S 60.00 90.00 58.00 24.00 $ 232.00 The $4.10 ($2.90 + $1.20) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 40.950 units, which is 65% of the factory's capacity of 63,000 units per month. The following monthly flexible budget information is available. Operating Levels (% of Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead Variable overhead capacity) 60% 65% 37,800 40,950 70% 44,100 756,000 819,000 882,000 S $ S Fixed overhead Total overhead 2,192,400 2,375,100 2,557,800 982,800 982,800 982,800 $ S 3,175,200 3,357,900 3,540,600 During the current month, the company operated at 60% of capacity, direct labor of 726,000 hours were used, and the following actual overhead costs were incurred. Actual variable overhead $ 2,120,000 Actual fixed overhead 1,065,000 Actual total overhead 3,185,000 Exercise 23-27A (Algo) Computing total variable and fixed overhead variances LO P5 1. Compute the total variable overhead variance and identify it as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. 2. Compute the total fixed overhead variance and identify it as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. ---At 60% of Operating Capacity-... Standard Direct Labor Hours Overhead Rate Standard Direct Labor Hours Standard Overhead Actual Overhead Applied Favorable or Overhead Variance Unfavorable
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The Heather Company's fiscal year ends on June 30.Its employees (with at least three months of experience) are entitled to 12 paid sick days annually for each calendar year beginning on January 1.An...
-
Write code in MATLAB (Radionuclide) (half-life) U-238 4.468 x 10 years U-235 703.8 x 10 years Mo-99 67 hours Tc-99m 6.04 hours Given the formula, where is the decay constant used in , calculate the...
-
Explain what is meant by the right of subrogation and how this may affect not only the insured but the person who has caused the injury or damage. Also indicate what other means the insurance...
-
Calculate the price of a bond at Par, above par & below par Bond No. 1: A $300,000 20year, 8% bond. Interest payable 2X per year. Market rate is 8% Bond No. 2: A $200,000, 10 year, 10% bond, interest...
-
Consider the circuit shown in Figure P10.75. The transistor parameters are \(I_{S 1}=5 \times 10^{-16} \mathrm{~A}, I_{S 2}=10^{-15} \mathrm{~A}, \beta_{1}=180, \beta_{2}=120, V_{A 1}=120...
-
A 1.50-kg horizontal, uniform tray is attached to a vertical ideal spring of force constant 185 N/m and a 275-g metal ball is in the tray. The spring is below the tray. so it can oscillate up-and...
-
Find curl ( f x g ) where F ( x , y , z ) = 2 xi + j + 4 yk and G ( x , y , z ) = xi + yj - zk .
-
George Zegoyan and Amir Gupta face a difficult decision. Their private auto parts manufacturing company has been a great success - too quickly. They cannot keep up with the demand for their product....
-
The base of the 13-foot ladder is 3 feet from a building. If the ladder reaches the flat roof, how tall is the building?
-
If 118,000 in money supply was created in system where the reserve requirement is 14%, calculate the amount of the initial deposit.
-
What are some benefits and challenges related to workforce diversity? What strategies that an I/O practitioner could put in place address the challenges in workforce diversity. Why each strategy...
-
A project maybe defined as a series of related jobs directed toward some major output and requiring a significant period of time to perform.
-
A vacation property valued at $29,900 was bought for 300 payments of $235 due at the end of every month. What nominal annual rate of interest compounded quarterly was charged?
-
Write a Professional development plan about online media
-
Refer to the Conservation Ecology (Dec. 2003) study of the causes of forest fragmentation, presented in Exercise 2.166 (p. 97). Recall that the researchers used advanced high-resolution satellite...
-
An electronic instrument is to be isolated from a panel that vibrates at frequencies ranging from \(25 \mathrm{~Hz}\) to \(35 \mathrm{~Hz}\). It is estimated that at least 80 percent vibration...
-
An exhaust fan, having a small unbalance, weights \(800 \mathrm{~N}\) and operates at a speed of \(600 \mathrm{rpm}\). It is desired to limit the response to a transmissibility of 2.5 as the fan...
-
An air compressor of mass \(500 \mathrm{~kg}\) has an eccentricity of \(50 \mathrm{~kg}-\mathrm{cm}\) and operates at a speed of \(300 \mathrm{rpm}\). The compressor is to be mounted on one of the...
Impact Of Artificial Intelligence In Business And Society 1st Edition - ISBN: 1032303417 - Free Book
Study smarter with the SolutionInn App