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 (20 pounds @ $3.20 per pound) Direct labor (10 hours @ $8.30 per DLH) Variable overhead (10 hours $4.70 per DLH) Fixed overhead (10 hours $2.30 per DLH) Standard cost per unit. $ 64.00 83.00 47.00 23.00 $ 217.00 The $7.00 ($4.70 + $2.30) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 34,200 units, which is 60% of the factory's capacity of 57,000 units per month. The following monthly flexible budget information is available. Operating Levels (of capacity) Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead Variable overhead Fixed overhead Total overhead 55% 31,350 313,500 60% 34,200 342,000 65% 37,050 370,500 $ 1,473,450 786,600 $ 1,607,400 786,600 $ 1,741,350 786,600 $ 2,260,050 $ 2,394,000 $ 2,527,950 During the current month, the company operated at 55% of capacity, direct labor of 295,000 hours were used, and the following actual overhead costs were incurred. Actual variable overhead Actual fixed overhead Actual total overhead $ 1,411,000 858,050 $ 2,269,050 Exercise 21-28A (Algo) Detailed overhead variances LO P5 AH Actual Hours SH Standard Hours AVR Actual Variable Rate Exercise 21-28A (Algo) Detailed overhead variances LO P5 AH Actual Hours SH Standard Hours AVR Actual Variable Rate SVR Standard Variable Rate 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances. 3. Compute the controllable variance. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the controllable variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Controllable Variance Controllable variance Sedona Company set the following standard costs for one unit of its product for this year. Direct material (20 pounds @ $3.20 per pound) Direct labor (10 hours @ $8.30 per DLH) Variable overhead (10 hours $4.70 per DLH) Fixed overhead (10 hours $2.30 per DLH) Standard cost per unit. $ 64.00 83.00 47.00 23.00 $ 217.00 The $7.00 ($4.70 + $2.30) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 34,200 units, which is 60% of the factory's capacity of 57,000 units per month. The following monthly flexible budget information is available. Operating Levels (of capacity) Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead Variable overhead Fixed overhead Total overhead 55% 31,350 313,500 60% 34,200 342,000 65% 37,050 370,500 $ 1,473,450 786,600 $ 1,607,400 786,600 $ 1,741,350 786,600 $ 2,260,050 $ 2,394,000 $ 2,527,950 During the current month, the company operated at 55% of capacity, direct labor of 295,000 hours were used, and the following actual overhead costs were incurred. Actual variable overhead Actual fixed overhead Actual total overhead $ 1,411,000 858,050 $ 2,269,050 Exercise 21-28A (Algo) Detailed overhead variances LO P5 AH Actual Hours SH Standard Hours AVR Actual Variable Rate Exercise 21-28A (Algo) Detailed overhead variances LO P5 AH Actual Hours SH Standard Hours AVR Actual Variable Rate SVR Standard Variable Rate 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances. 3. Compute the controllable variance. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the controllable variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Controllable Variance Controllable variance
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...
-
Bridge hands. In the game of bridge, four players are dealt hands of 13 cards each. An important statistic is the distribution of the number of cards in each suit in a hand. Which is the most likely,...
-
In Exercise 12 we looked at United Nations data about a country's GDP and the average number of people per room (Crowdedness) in housing there. For a re-expression, a student tried the reciprocal...
-
A project has the following cash flows: Year _________________Cash Flow 0 .......................... $53,000 1 .......................... -29,000 2 .......................... -37,000 What is the IRR...
-
A delicate instrument weighing \(200 \mathrm{~N}\) is suspended by four identical springs, each with stiffness \(50,000 \mathrm{~N} / \mathrm{m}\), in a rigid box as shown in Fig. 9.50. The box is...
-
Jim Overstreet, inventory control manager for Itex, receives wheel bearings from Wheel-Rite, a small producer of metal parts. Unfortunately, Wheel-Rite can only produce 500 wheel bearings per day....
-
The company INSOL1, due to the decrease in sales in the last period, has decided to acquire new welding machinery that decreases production time, as well as it also lowers costs, which would position...
-
On 10/31/20 Chulo Corp. had credit card sales of $1,500. The credit card company charges a 2% fee for all credit card transactions. What journal entry should Chulo Corp. record with respect to the...
-
How do advanced spectroscopic and microscopic techniques, such as Fourier-transform infrared (FTIR) spectroscopy, Raman spectroscopy, scanning electron microscopy (SEM), and atomic force microscopy...
-
How do innovative reactor engineering concepts, such as microreactors, structured catalysts, and multiphase flow reactors, revolutionize the design and operation of chemical processes by enhancing...
-
Company developed a brand new product called the Mood Marker. The marker will release different colors in response to the user's emotional state. The markers currently cost the company $2.00 each and...
-
Discuss the application of computational fluid dynamics (CFD) in modeling turbulent flow regimes within chemical reactors and its impact on reactor design and performance optimization.
-
Contrast the role of the internal consultant with that of the external consultant. Explain it
-
1. Why do you think the Islam religion spread so fast 2. What proportion of the world population is Muslims? 3. What is the meaning of the words Muslim and Islam? 4. What is meant by the term,...
-
Consider the reaction of acetic acid in water CH 3 CO 2 H(aq) + H 2 O(l) CH3CO 22 (aq) + H 3 O + (aq) where Ka 5 1.8 3 1025. a. Which two bases are competing for the proton? b. Which is the stronger...
-
Do the assumptions for Bernoulli trials appear to hold? Explain. If the assumptions hold, identify success and the probability of interest. (a) A TV ratings company will use their electronic...
-
Use Table 1, or software, to find (a) \(B(8 ; 16,0.40)\); (b) \(b(8 ; 16,0.40)\); (c) \(B(9 ; 12,0.60)\); (d) \(b(9 ; 12,0.60)\); (e) \(\sum_{k=6}^{20} b(k ; 20,0.15)\); (f) \(\sum_{k=6}^{9} b(k ;...
-
Which conditions for the binomial distribution, if any, fail to hold in the following situations? (a) The number of persons having a cold at a family reunion attended by 30 persons. (b) Among 8...
Study smarter with the SolutionInn App