Problem 23-7A Your answer is partially correct. Try again. Rogen Corporation manufactures a single product. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Problem 23-7A Your answer is partially correct. Try again. Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-3 pound plastic at $7.00 per pound $ 21.00 Direct labor-1.0 hours at $11.00 per hour 11.00 6.00 10.00 $48.00 Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit The predetermined manufacturing overhead rate is $16 per direct labor hour ($16.00+ 1.0). It was computed from a master manufacturing overhead budget based on normal production of 5,800 direct labor hours (5,800 units) for the month. The master budget showed total variable costs of $34,800 ($6.00 per hour) and total fixed overhead costs of $58,000 ($10.00 per hour). Actual costs for October in producing 5,000 units were as follows. Direct materials (15,140 pounds). Direct labor (4,860 hours) Variable overhead Fixed overhead Total manufacturing costs The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. Compute the overhead controllable variance and the overhead volume variance. Overhead controllable variance $ 107,494 54,432 56,000 26,300 $244,226 Overhead volume variance 2300 8000 Favorable Unfavorable Click if you would like to Show Work for this question: Open Show Work Problem 23-7A Your answer is partially correct. Try again. Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-3 pound plastic at $7.00 per pound $ 21.00 Direct labor-1.0 hours at $11.00 per hour 11.00 6.00 10.00 $48.00 Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit The predetermined manufacturing overhead rate is $16 per direct labor hour ($16.00+ 1.0). It was computed from a master manufacturing overhead budget based on normal production of 5,800 direct labor hours (5,800 units) for the month. The master budget showed total variable costs of $34,800 ($6.00 per hour) and total fixed overhead costs of $58,000 ($10.00 per hour). Actual costs for October in producing 5,000 units were as follows. Direct materials (15,140 pounds). Direct labor (4,860 hours) Variable overhead Fixed overhead Total manufacturing costs The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. Compute the overhead controllable variance and the overhead volume variance. Overhead controllable variance $ 107,494 54,432 56,000 26,300 $244,226 Overhead volume variance 2300 8000 Favorable Unfavorable Click if you would like to Show Work for this question: Open Show Work
Expert Answer:
Answer rating: 100% (QA)
We know that the formula of Total overhead controllable variance Actual overhead Budgeted overhea... View the full answer
Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
When the predetermined manufacturing overhead rate is calculated, why are estimated costs and cost driver levels used instead of actual dollars and amounts?
-
Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they estimated total manufacturing overhead costs...
-
Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they estimated total manufacturing overhead costs...
-
0 The initial substitution of x = a yields the form Simplify the function algebraically, or use a table or 0 graph to determine the limit. When necessary, state "DNE". x + 4x-5 x - 1 Step 1: Factor...
-
What problems might arise from vertically partitioning a relation? Given these potential problems, what general conditions influence when to partition a relation vertically?
-
Trends in the motorcycle industry are presented early in this chapter. Revisit this issue by identifying the effects of economic, demographic, and regulatory changes that may affect the motorcycle...
-
An entity has implemented a control procedure which requires that authorized personnel reconcile the total of individual customer accounts receivable with control totals. This control relates to...
-
World Company expects to operate at 80% of its productive capacity of 50,000 units per month. At this planned level, the company expects to use 25,000 standard hours of direct labor. Overhead is...
-
Following are separate income statements for Austin, Inc., and its 80 percent-owned subsidiary, Rio Grande Corporation as well as a consolidated statement for the business combination as a whole...
-
Consider the situation in Example 8.7. A new gauge is being evaluated for this process. The same operator measures the same 20 parts twice using the new gauge and obtains the data shown in Table...
-
The Below table shows list of activities for a small project with the predecessors and duration for each activity. The project started on Monday (8th July 2020). There are five (5) working days in a...
-
John 3:16, Is Consideration present? Identify the consideration, Would God's contract with believers be enforceable under the law of contracts? Explain why? State the Question to be answered. State...
-
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $905. Selected data for the company's operations last year follow:...
-
Although it seems like women-owned and veteran women-owned business are in the rise, it is still very challenging for women to get the capital needed for their business. Investors will give the...
-
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses Purchases of raw materials Direct labor...
-
A Bride for Jacob, Has a Deal Been Made? Is the Deal Enforceable?, Does the Statute of Frauds apply as a Defense to Enforcement of the Deal? Are any third parties affected by the contract? Parol...
-
Through history, various economies have treated the use of interest as an unethical behavior. If explicitly charging interest were made illegal in the US, what are at least three (legal) mechanisms...
-
Use nodal analysis to determine voltages v1, v2, and v3 in the circuit Fig. 3.76. Figure 3.76 4 S 3i, 2 A 4A
-
The Vice President for Sales and Marketing at Waterways Corporation is planning for production needs to meet sales demand in the coming year. He is also trying to determine how the companys profits...
-
The manufacturing overhead budget for Fleming Company contains the following items. The budget was based on an estimated 2,000 units being produced. During the past month, 1,500 units were produced,...
-
What factors should be considered in setting (a) The direct materials price standard and (b) The direct materials quantity standard?
-
The horizontal beam is assumed to be rigid and supports the distributed load shown. Determine the angle of tilt of the beam after the load is applied. Each support consists of a wooden post having a...
-
The distributed loading is supported by the three suspender bars. AB and EF are made of aluminum and CD is made of steel. If each bar has a cross-sectional area of 450 mm 2 , determine the maximum...
-
The center post B of the assembly has an original length of 124.7 mm, whereas posts A and C have a length of 125 mm. If the caps on the top and bottom can be considered rigid, determine the average...
Study smarter with the SolutionInn App