Roun Around, Inc., is a manufacturer of vacuums and uses standard costing. Manufacturing overhead (both variable...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Roun Around, Inc., is a manufacturer of vacuums and uses standard costing. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of budgeted machine-hours. In 2017, budgeted fixed manufacturing overhead cost was $17,000,000. Budgeted variable manufacturing overhead was $12 per machine-hour. The denominator level was 1,000,000 machine-hours. X Requirements 1. Prepare a graph for fixed manufacturing overhead. The graph should display how Best Around, Inc.'s fixed manufacturing overhead costs will be depicted for the purposes of (a) planning and control and (b) inventory costing. 2. Suppose that 975,000 machine-hours were allowed for actual output produced in 2017, but 900,000 actual machine-hours were used. Actual manufacturing overhead was $10,350,000, variable, and $16,900,000, fixed. Compute (a) the variable manufacturing overhead spending and efficiency variances and (b) the fixed manufacturing overhead spending and production-volume variances. 3. What is the amount of the under- or overallocated variable manufacturing overhead and the under- or overallocated fixed manufacturing overhead? Why are the flexible-budget variance and the under- or overallocated overhead amount always the same for variable manufacturing overhead but rarely the same for fixed manufacturing overhead? 4. Suppose the denominator level was 850,000 rather than 1,000,000 machine-hours. What variances in requirement 2 would be affected? Recompute them. Roun Around, Inc., is a manufacturer of vacuums and uses standard costing. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of budgeted machine-hours. In 2017, budgeted fixed manufacturing overhead cost was $17,000,000. Budgeted variable manufacturing overhead was $12 per machine-hour. The denominator level was 1,000,000 machine-hours. X Requirements 1. Prepare a graph for fixed manufacturing overhead. The graph should display how Best Around, Inc.'s fixed manufacturing overhead costs will be depicted for the purposes of (a) planning and control and (b) inventory costing. 2. Suppose that 975,000 machine-hours were allowed for actual output produced in 2017, but 900,000 actual machine-hours were used. Actual manufacturing overhead was $10,350,000, variable, and $16,900,000, fixed. Compute (a) the variable manufacturing overhead spending and efficiency variances and (b) the fixed manufacturing overhead spending and production-volume variances. 3. What is the amount of the under- or overallocated variable manufacturing overhead and the under- or overallocated fixed manufacturing overhead? Why are the flexible-budget variance and the under- or overallocated overhead amount always the same for variable manufacturing overhead but rarely the same for fixed manufacturing overhead? 4. Suppose the denominator level was 850,000 rather than 1,000,000 machine-hours. What variances in requirement 2 would be affected? Recompute them.
Expert Answer:
Answer rating: 100% (QA)
ANSWER 1 Fixed manufacturing overhead costs will be depicted for the purposes of a planning and cont... View the full answer
Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan
Posted Date:
Students also viewed these accounting questions
-
Fresh Inc. is a manufacturer of vacuums and uses standard costing. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of budgeted machine-hours. In 2013, budgeted...
-
Fresh Inc. is a manufacturer of vacuums and uses standard costing. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of budgeted machine-hours. In 2015, budgeted...
-
Each table of values gives several points that lie on a line.(a) What is the x-intercept of the line? The y-intercept?(b) Which equation in choices AD corresponds to the given table of values?(c)...
-
During its most recent fiscal year, Bargain Airlines grounded 10 of its 747s due to a potential problem with the wing flaps. Although the planes had been repaired by the end of the fiscal year, the...
-
Should Mg(OH) 2 (s) precipitate from a solution that is 0.010 M MgCl 2 and also 0.10 M NH 3 ?
-
1. Why was the City of Cedar Park attempting to address the way in which it communicated water consumption information to its customers? 2. Why were City of Cedar Park customers frustrated? 3. What...
-
Hudson Corporation's balance sheet at December 31, 2016, is presented below. During January 2017, the following transactions occurred. Hudson uses the perpetual inventory method. Jan. 1 Hudson...
-
1. Pertimbangkan satu cakera dengan 2000 silinder, bernombor 0 hingga 1999. Anggapkan kedudukan kepala semasa, berada di silinder 500. Giliran permintaan diberi seperti berikut: Consider one disk...
-
Helix Corporation uses the weighted-average method in its process costing system. It produces prefabricated flooring in a series of steps carried out in production departments. All of the material...
-
You have $76,000 you would like to invest in three different stocks, MarkyB Inc., JohnJohn Ltd., and Garretts Spaghetti House. You would like to invest no more than $23,000 in Garretts Spaghetti...
-
Company XYZ has a current stock price of $39.43 and is not expected to pay dividends in years 1, 2 and 3. it is expected to pay a dividend of S8 four years from today. After year 4, dividends are...
-
You want to be a millionaire when you retire in 30 years. You CANNOT put any money away for the next 10 years, but will start the month after that. How much do you have to save each month if you can...
-
The current spot exchange rate is RM5.76/ and the three-month forward rate is RM5.70/. Based on your analysis of the exchange rate, you are pretty confident that the spot exchange rate will be...
-
The firm originally is 100% financed by equity ( Unlevered firm ). The EBIT for the firm is $20,000. The cost of capital for this unlevered firm is 10%. The tax rate is 40%. Systematic risk of the...
-
You have been asked to evaluate the proposed acquisition of a new Machine for your company. The machine's basic price is $150,000. Assume that the machine can be depreciated using straight line over...
-
AGL Electronics Inc. AGL Electronics Inc. (AGL) manufactures DX drones for niche clients in the entertainment industry. The drones it currently builds have basic features with a few add-ons. They...
-
Distinguish among total-moisture content, free-moisture content, equilibrium-moisture content, unbound moisture, and bound moisture.
-
Bergen Corporation has three divisions: pulp, paper, and fibers. Bergen's new controller, David Fisher, is reviewing the allocation of fixed corporate-overhead costs to the three divisions. He is...
-
Given examples of costs included in annual carrying costs of inventory when using the EOQ decision model.
-
The Horsheim Company is a furniture manufacturer with two departments: molding and finishing. The company uses the weighted-average method of process costing. In August, the following data were...
-
Have you ever been informed of the information flow in your unit or division?
-
If so, did you receive the information in a formal seminar or in an informal manner, oneon-one with another individual? Do you think this was the best way? Why?
-
Do you know about the chart of accounts in your organization as it pertains to information you receive?
Java Programming Program Design Including Data Structures 1st Edition - ISBN: 1418835404 - Free Book
Study smarter with the SolutionInn App