J&M Manufacturing has established the following master flexible budget Sales in units Sales Less variable expenses:...
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J&M Manufacturing has established the following master flexible budget Sales in units Sales Less variable expenses: Raw materials Direct labour Manufacturing overhead Selling and administrative Total variable expenses Contribution margin Less fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Net income 100,000 150,000 200,000 $1,500,000 $2.350,000 $3,500,000 220,000 330,000 440,000 240,000 360,000 480,000 180,000 270,000 360,000 100,000 150,000 200,000 740,000 1.110,000 1,480,000 760,000 1,240,000 2,020,000 337,500 337,500 337,500 250,000 250,000 250,000 587,500 587,500 587,500 $172,500 $652,500 $1,432,500 Manufacturing overhead is applied based on machine-hours. At standard, each unit of product requires one machine-hour to complete. Manufacturing overhead is applied based on machine-hours. At standard, each unit of product requires one machine-hour to complete. Actual data for the year were as follows: Actual variable manufacturing overhead cost Actual fixed manufacturing overhead cost Actual machine-hours incurred. Units produced and sold $254,875 $323,000 114,000 97,000 Required a. The denominator activity level is 150,000 units. What are the predetermined variable and fixed manufacturing overhead rates? b. Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances for the year. J&M Manufacturing has established the following master flexible budget Sales in units Sales Less variable expenses: Raw materials Direct labour Manufacturing overhead Selling and administrative Total variable expenses Contribution margin Less fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Net income 100,000 150,000 200,000 $1,500,000 $2.350,000 $3,500,000 220,000 330,000 440,000 240,000 360,000 480,000 180,000 270,000 360,000 100,000 150,000 200,000 740,000 1.110,000 1,480,000 760,000 1,240,000 2,020,000 337,500 337,500 337,500 250,000 250,000 250,000 587,500 587,500 587,500 $172,500 $652,500 $1,432,500 Manufacturing overhead is applied based on machine-hours. At standard, each unit of product requires one machine-hour to complete. Manufacturing overhead is applied based on machine-hours. At standard, each unit of product requires one machine-hour to complete. Actual data for the year were as follows: Actual variable manufacturing overhead cost Actual fixed manufacturing overhead cost Actual machine-hours incurred. Units produced and sold $254,875 $323,000 114,000 97,000 Required a. The denominator activity level is 150,000 units. What are the predetermined variable and fixed manufacturing overhead rates? b. Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances for the year.
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a The predetermined variable and fixed manufacturing overhead rates Variable manufacturing overhead ... View the full answer
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
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