Use the high$-$low method find the variable and fixed overhead rates.

$$ Product$$ Direct Labor$$ Total

$$ Units$$ Hours$$Overhead$$

$7251,135$ $$15,450$

$7001,120$ $$15,346$

$7551,165$ $$15,856$

$8151,235$ $$16,125$

$8501,360$ $$16,714$

$8451,320$ $$16,695$

Standard cost per unit:

$$ Material $(2\mathrm{.}5$ pounds @ $$3\mathrm{.}70$ per lb$.)$ $ $9\mathrm{.}25$

$$ Labor $(1\mathrm{.}6$ hours@$$9\mathrm{.}75$ per hr$)$ $$15\mathrm{.}60$

$$ Variable Overhead $(1\mathrm{.}6$ hours @ $???)??????$

$$ Fixed Overhead $(1\mathrm{.}6$ hours@ $???)??????$

The fixed cost standard rate uses $1,120$ hours $($Round to two decimals.$).$

Complete the standard cost card on the excel spreadsheet.

Analysis of the actual factory data show the following $($none has been recorded$)$:

Production:

$$ Material is added at the beginning of the process.$$

$$ Beginning units in process $(30\%$ complete conversion$)20$ units

$$ Transferred to finished goods$625$ units

$$ Ending units in process $(65\%$ complete conversion$)40$ units

$$ Material used during the month $1,710$ pounds

$$ Material purchased during the month $2,200$ pounds costing $$8,250$

$$ Labor used $1,132$ hours costing $$11,321$

$$ Variable Factory overhead $$6,839$

$$ Fixed factory overhead $$8,796$

FIFO method Required:

Find the variable overhead rate, fixed overhead rate, and standard cost card

Prepare a process cost sheet using standard costing.

Find the amount transferred to finished goods.

Prepare the journal entries to record the transfer to finished goods.

Other information:

Overhead rate

Fixed overhead rate is based on $1,120$ direct labor hours.

Fill in the shaded areas.

Type explanation here on how the overhead was calculated. $\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|\}$

$\backslash$hline Equivalent units & DM & DL & FO $\backslash \backslash$

$\backslash$hline Units transferred out & & & $\backslash \backslash$

$\backslash$hline Beginning units in process & & & $\backslash \backslash$

$\backslash$hline Units completed and transferred & & & $\backslash \backslash$

$\backslash$hline $\backslash$begin$\{$tabular$\}\{$l$\}$

Amount needed to complete $\backslash \backslash$

beginning units in process

$\backslash$end$\{$tabular$\}$ & & & $\backslash \backslash$

$\backslash$hline Ending units in process & & & $\backslash \backslash$

$\backslash$hline Equivalent units & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline Cost to account for & & & $\backslash \backslash$

$\backslash$hline Direct material & & & $\backslash \backslash$

$\backslash$hline Direct labor & & & $\backslash \backslash$

$\backslash$hline Factory overhead & & & $\backslash \backslash$

$\backslash$hline Total costs to account for & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline Costs accounted for & & & $\backslash \backslash$

$\backslash$hline Transferred to finished goods & & & $\backslash \backslash$

$\backslash$hline Beginning work in process & & & $\backslash \backslash$

$\backslash$hline DM & & & $\backslash \backslash$

$\backslash$hline DL & & & $\backslash \backslash$

$\backslash$hline FO & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$