8. The Normal Capacity of the Assembly Department is 12000 Machine Hours per month, At normal capacity, the standard F.O.H rate is $12.5per machine hour, based on $96000 of budgeted fixed expenses per month. During April ,the department operated at 12500 machine hours, with actual F.O.H of $156000. The number of standard machine hours allowed for the production actually attained hatey is 11000.
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- Assume that the inspection activity has an expected cost of 120,000. Expected direct labor hours are 3,000, and expected number of inspections is 600. The best activity rate for inspection is as follows: a. 40 per inspection b. 40 per hour c. 200 per inspection d. 200 per hourA company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
- Precision Company estimates its machine-hour requirements for the four quarters to be 35.000 hours, 20,000 hours, 15,000 hours, and 30,000 hours respectively. The variable manufacturing overhead rate is $4 per machine-hour. The fixed manufacturing overhead is $50,000 per quarter, which includes $20,000 of depreciation expense. Knowledge Check 01 What is the budgeted variable manufacturing overhead for the year? O $200,000 O $260,000 O $280,000 O $400,000The normal capacity of the Cutting Department is 12,000 machine hours per month. At normal capacity, the standard factory overhead rate is P12.50 per machine hour based on P96,000 budgeted fixed cost per month and a variable cost rate of P4.50 per machine hour. During May, the department operated at 12,500 machine hours, with actual factory overhead of P166,000. The number of standard machine hours allowed for the production actually attained is 11,000.The controllable variance and volume variance, respectively, areLibra Company is expected to produce 4,000 units for the coming year. The budget shows fixed manufacturing overhead of P1,440 and an estimated variable manufacturing overhead rate of P2.10 per unit. Actual output was 4,100 units, with a total manufacturing overhead of P9,000. What is the over or under applied manufacturing overhead? A P1,086 under applied B P1,086 over applied P 267 over applied P 267 under applied
- 5. A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 ? per ?. Budgeted direct labor: $1,500,000 ? per ?. Estimated machine hours: 100,000 ? per ?. PLEASE NOTE: Predetermined overhead rates will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $12,345.67). The rates will include their proper label according to the textbook examples (no abbreviations).The cost formula for the maintenance department of Rainbow Ltd. is $19,400 per month plus $7.70 per machine hour used by the production department.Required:a. Calculate the maintenance cost that would be budgeted for a month in which 6,700 machine hours are planned to be used. b. Prepare an appropriate performance report for the maintenance department assuming that 7,060 machine hours were actually used in the month of May and that the total maintenance cost incurred was $68,940. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)The monthly normal capacity of an Assembling Department was 12,000 machine hours. At normal capacity, the standard factory overhead tariff was $12.50 per machine hours, based on standard monthly fixed budgeted costs of $96,000 and variable costs $4.5 per hours. During the April, the department operated 12,500 machine hours, with actual overhead of $166,000. Standard allowed the machine usage for achieved production was 11,000. Which of the following statement is correct? 1. Controllable variance of $8,000 (favorable) and volume of $20,500 (favorable) 2. Controllable variance of $8,000 (unfavorable) and volume of $20,500 (favorable) 3. Controllable variance of $20,500 (favorable) and volume of $8,000 (unfavorable) 4. Controllable variance of $20,500 (ufavorable) and volume of $8,000 (unfavorable)
- The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 2nd Quarter 1st Quarter 10,400 3rd Quarter 11,400 4th Quarter 12,400 Units to be produced 9,400 Each unit requires 0.25 direct labor-hours and direct laborers are paid $12.00 per hour. In addition, the variable manufacturing overhead rate is $1.70 per direct labor-hour. The fixed manufacturing overhead is $84,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $24,000 per quarter. Required: 1. Calculate the company's total estimated direct labor cost for each quarter of the the upcoming fiscal year and for the year as a whole. 2&3. Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole.The cost formula for the maintenance department of Rambo Limited is $19,200 per month plus $7.50 per machine hour used by the production department. Required: a. Calculate the maintenance cost that would be budgeted for a month in which 6,600 machine hours are planned to be used. b. Prepare an appropriate performance report for the maintenance department assuming that 7,100 machine hours would be used in the month of May and that the total actual maintenance cost incurred in May was $68,950. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the maintenance cost that would be budgeted for a month in which 6,600 machine hours are planned to be used. Maintenance costThe Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 10,200 9,200 12,200 Units to be produced 11,200 Each unit requires 0.25 direct labor-hours and direct laborers are paid $11.00 per hour. In addition, the variable manufacturing overhead rate is $1.60 per direct labor-hour. The fixed manufacturing overhead is $82,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $22,000 per quarter. Required: 1. Calculate the company's total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole. 2. and 3. Calculate the company's total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole. Complete this question by entering your answers in the tabs below. Req 1…