The Finishing Department of Pinnacle Manufacturing Co. prepared the following factory overhead cost budget for October...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Finishing Department of Pinnacle Manufacturing Co. prepared the following factory overhead cost budget for October of the current year, during which it expected to operate at a 100% capacity of 10,000 machine hours. Variable costs: Indirect factory wages $18,000 Power and light 12,000 Indirect materials 4,000 Total variable cost $34,000 Fixed costs: Supervisory salaries $12,000 Depreciation of plant and equipment 8,800 Insurance and property taxes 3,200 Total fixed cost 24,000 Total factory overhead $58,000 During October, the plant was operated for 9,000 machine hours and the factory overhead costs incurred were as follows: indirect factory wages, $16,400; power and light, $10,000; indirect materials, $3,000; supervisory salaries, $12,000; depreciation of plant and equipment, $8,800; insurance and property taxes, $3,200. Prepare a factory overhead cost variance report for October. (The budgeted amounts for actual amount produced should be based on 9,000 machine hours.) Enter all amounts as positive numbers. If an amount box does not require an entry, leave it blank. For the Month Ended October 31 Productive capacity for the month 10,000 hours Actual production for the month 9,000 hours Budget Actual Favorable Variances Unfavorable Variances Variable factory overhead costs: Indirect factory wages 18,000 16,400 1,600 Power and light 12,000 10,000 2,000 Indirect materials 4,000 3,000 1,000 Total variable factory overhead cost 34,000 29,400 Fixed factory overhead costs: Supervisory salaries 12,000 12,000 Depreciation of plant and equipment 8,800 8,800 Insurance and property taxes 3,200 3,200 Total fixed factory overhead cost 24,000 24,000 Total factory overhead cost 58,000 53,400 Total controllable variances 4,600 Net controllable Net controllable variance-favorable 4,600 Volume variance-unfavorable: Idle hours at the standard rate for fixed overhead Total factory overhead cost variance-unfavorable The Finishing Department of Pinnacle Manufacturing Co. prepared the following factory overhead cost budget for October of the current year, during which it expected to operate at a 100% capacity of 10,000 machine hours. Variable costs: Indirect factory wages $18,000 Power and light 12,000 Indirect materials 4,000 Total variable cost $34,000 Fixed costs: Supervisory salaries $12,000 Depreciation of plant and equipment 8,800 Insurance and property taxes 3,200 Total fixed cost 24,000 Total factory overhead $58,000 During October, the plant was operated for 9,000 machine hours and the factory overhead costs incurred were as follows: indirect factory wages, $16,400; power and light, $10,000; indirect materials, $3,000; supervisory salaries, $12,000; depreciation of plant and equipment, $8,800; insurance and property taxes, $3,200. Prepare a factory overhead cost variance report for October. (The budgeted amounts for actual amount produced should be based on 9,000 machine hours.) Enter all amounts as positive numbers. If an amount box does not require an entry, leave it blank. For the Month Ended October 31 Productive capacity for the month 10,000 hours Actual production for the month 9,000 hours Budget Actual Favorable Variances Unfavorable Variances Variable factory overhead costs: Indirect factory wages 18,000 16,400 1,600 Power and light 12,000 10,000 2,000 Indirect materials 4,000 3,000 1,000 Total variable factory overhead cost 34,000 29,400 Fixed factory overhead costs: Supervisory salaries 12,000 12,000 Depreciation of plant and equipment 8,800 8,800 Insurance and property taxes 3,200 3,200 Total fixed factory overhead cost 24,000 24,000 Total factory overhead cost 58,000 53,400 Total controllable variances 4,600 Net controllable Net controllable variance-favorable 4,600 Volume variance-unfavorable: Idle hours at the standard rate for fixed overhead Total factory overhead cost variance-unfavorable
Expert Answer:
Answer rating: 100% (QA)
D F G H M Pinnacle Manufacturing Co Finishing department Explanation 1 Factory overhead Cost varianc... View the full answer
Related Book For
Statistics for Management and Economics Abbreviated
ISBN: 978-1285869643
10th Edition
Authors: Gerald Keller
Posted Date:
Students also viewed these accounting questions
-
Why is depreciation of plant and equipment an expense in the income statement?
-
During May, Thomson Company incurred factory overhead costs as follows: indirect materials, $24,500; indirect labor, $64,500; utilities cost, $5,800; and factory depreciation, $45,200. Journalize the...
-
During June, Lewis Company incurred factory overhead costs as follows: indirect materials, $6,000; indirect labor, $7,600; utilities cost, $3,200; and factory depreciation $7,200. Journalize the...
-
If you were the lead analyst for LGM, how would you determine the requirements? Be specific in your answer. List several questions you need answered. Artif. Intell. Med., 56 (3) pp. 137-156, Link:...
-
Describe a situation where different market segments would have different VTCs for the same product.
-
During October, Hair Styles Pty Ltd experiences the following transactions in establishing a petty cash fund. Required Journalise the entries in October that pertain to the petty cash fund. Oct. 1 31...
-
When fitting a polynomial to a set of paired data, we usually begin by fitting a straight line and using the method on page 339 to test the null hypothesis \(\beta_{1}=0\). Then we fit a...
-
The Crandall Corporation currently has 100,000 shares outstanding that are selling at $50 per share. It needs to raise $900,000. Net income after taxes is $500,000. Its Vice-President of Finance and...
-
The annual return on the S&P 500 Index was 12.4 percent. The annual T-bill yield during the same period was 5.7 percent. What was the market risk premium during that year?
-
The trial balance of Pacilio Security Services Inc. as of January 1, 2013 had the following normal balances: Cash ..............$8,900 Accounts Receivable ......... 1,500 Supplies .............. 65...
-
Joe loves explosives and begins his own demolition company, Joe the Destroyer. He doesnt file any paperwork to begin his company because his friend told him that he didnt need to file anything to...
-
Rico and Lucy Martins real property tax year is the calendar year, with payment due September 1. The Martins sold their old home on March 31 of the current year and bought a new home on April 30 of...
-
Make a study guide for autism spectrum disorder. The study guide should be in the form of an outline with references and should incorporate visual elements such as concept maps, charts, diagrams,...
-
An igneous rock has a mass of 5 Kg. a. What is its weight on the moon, where the acceleration due to gravity is one sixth that on Earth? b. What is its weight in Jupiter, where the acceleration due...
-
1 . A 7 - year, $ 1 0 0 0 par, semi - annual pay 8 % fixed coupon bond has a market discount rate of 6 % with 2 years to maturity. What is the market price of the bond?
-
ABC Corporation, a multinational company, is experiencing challenges in managing its international flow of funds. Analyze the factors contributing to these challenges and propose strategies to...
-
Cultural Diversity- Counselors respect, engage, honor, and embrace diversity and a multicultural approach that supports the worth, dignity, potential, and uniqueness of people within their social and...
-
Write an SQL statement to display all data on products having a QuantityOnHand greater than 0.
-
a. The proportion of successes in a random sample of 400 was calculated as 50%. Estimate the population proportion with 95% confidence. b. Repeat part (a) with p = 33%. c. Repeat part (a) with p =...
-
Exercise 12.31 dealt with the amount of time high school students spend per week at part-time jobs. In addition to the hours of part-time work the school guidance counselor recorded the gender of the...
-
According to climatologists, the long-term average for Atlantic storms is 9.6 per season (June 1 to November 30), with 6 becoming hurricanes and 2.3 becoming intense hurricanes. Find the probability...
-
Hannah Gilpin is the controller of Blakemore Auto Glass, a division of Eastern Glass and Window. Her division has been under pressure to improve its divisional operating income. Currently, divisions...
-
Key success factors. Dalworth Construction Company provides construction services for major projects. Managers at the company believe that construction is a people-management business, and they list...
-
How do companies add value, and what are the dimensions of performance that customers are expecting of companies?
Study smarter with the SolutionInn App