Dineshbhai Records at the Farnsworth Corporation contained the following data for the most recent period of activity:Actual total direct labor costActual direct labor-hours workedStandard direct labor-hours allowed for actual output (flexible budget)Direct labor price variance$ 472,36015,12014,248$45,500 F$ 347,500$ 21Actual variable overheadStandard variable overhead rate per standard direct labor-hourVariable overhead is applied based on standard direct labor-hours allowed.Required:Compute the labor and variable overhead price and efficiency variances.Note: Do not round Intermediate calculations. Indicate the effect of each varlance by selecting "F" for favorable, or "U" forunfavorable. If there is no effect, do not select elther option.Direct laborPrice varianceEfficiency varianceVariable overhead:Price varianceEfficiency variance

To compute the labor and variable overhead price and efficiency variances, we need to follow these…

Answered: Records at the Farnsworth Corporation…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 11E: Ripley, Inc., costs products using a normal costing system. The following data are available for...

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Rath Company showed the following information for the year: Required: 1. Calculate the standard direct labor hours for actual production. 2. Calculate the applied variable overhead. 3. Calculate the total variable overhead variance.
Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?
Cushing, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. What was last years per unit product cost? a. 1.39 b. 4.40 c. 4.43 d. 3.01
Cost Flows Consider the following independent jobs. Overhead is applied in Department 1 at the rate of 6 per direct labor hour. Overhead is applied in Department 2 at the rate of 8 per machine hour. Direct labor wages average 10 per hour in each department. Required: Fill in the missing data for each job.
A company has the following information relating to its production costs: Compute the actual and applied overhead using the companys predetermined overhead rate of $23.92 per machine hour. Was the overhead over applied or under applied, and by how much?
The predetermined overhead rate equals a. actual overhead divided by actual activity level for a period. b. estimated overhead divided by estimated activity level for a period. c. actual overhead minus estimated overhead. d. actual overhead multiplied by actual activity level for a period. e. one-twelfth of estimated overhead.
A company uses a standard costing system and applies overhead to production based on direct labor-hours. It provided the following information for its most recent year. $300,000 $276,000 60,000 56,000 56,500 Budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator hours) Actual direct labor-hours Standard direct labor-hours al1lowed for actual output What is the fixed overhead volume variance? Multiple Cholce $20,000 F $17,500 U $20,000 U MacBook Air 吕口豐

4 Records at the Farnsworth Corporation contained the following data for the most recent period of activity: Actual total direct labor cost Actual direct labor-hours worked $ 550,750 15,480 ints Standard direct labor-hours allowed for actual output (flexible budget) Direct labor price variance Actual variable overhead 14,960 $49,100 F $ 351,100 Standard variable overhead rate per standard direct labor-hour $ 21 Variable overhead is applied based on standard direct labor-hours allowed. Required: Compute the labor and variable overhead price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct labor: Price variance Efficiency variance Variable overhead: Price variance Answer is not complete. F U Efficiency variance U a. It does not indicate completion.
Records at the Farnsworth Corporation contained the following data for the most recent period of activity: Actual total direct labor cost Actual direct labor-hours worked $ 506,800 15,280 Standard direct labor-hours allowed for actual output (flexible budget) Direct labor price variance Actual variable overhead Standard variable overhead rate per standard direct labor-hour 14,560 $47,100 F $ 349,100- $ 21 Variable overhead is applied based on standard direct labor-hours allowed. Required: Compute the labor and variable overhead price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct labor: Price variance Efficiency variance Variable overhead: Price variance Efficiency variance
Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following information for its most recent year: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours Actual direct labor-hours Standard direct labor-hours allowed for the actual output What is the fixed overhead volume variance? Multiple Choice O $20,000 U $20,000 F $9,000 U $9,000 F $ 300,000 $ 276,000 60,000 56,000 58, 200
Applying Overhead in a Standard Costing System Privack Corporation has a standard cost system in which it applies overhead to products base the standard direct labor-hours allowed for the actual output of the period. Data concerning most recent year appear below: Required: 1. Compute the predetermined overhead rate for the year. Be sure to include the total budget fixed overhead and the total budgeted variable overhead in the numerator of your rate. 2. Compute the amount of overhead that would be applied to the output of the period.
A manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHS) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Level of activity Overhead costs at the denominator activity level: Variable overhead cost 2,950 DLHS $ 9,400 $39,125 Fixed overhead cost 17 The following data pertain to operations for the most recent period: Actual hours Standard hours allowed for the actual output Actual total variable manufacturing overhead cost Actual total fixed manufacturing overhead cost 3,500 DLHS 2,637 DLHS $10,000 $39,525 What is the predetermined overhead rate to the nearest cent?

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