INCOMPLETE DATA, OVERHEAD ANALYSIS Lynwood Company produces surge protectors. To help control costs, Lynwood employs a standard
Question:
INCOMPLETE DATA, OVERHEAD ANALYSIS Lynwood Company produces surge protectors. To help control costs, Lynwood employs a standard costing system and uses a flexible budget to predict overhead costs at various levels of activity. For the most recent year, Lynwood used a standard overhead rate of $18 per direct labor hour. The rate was computed using practical activity. Budgeted overhead costs are $396,000 for 18,000 direct labor hours and $540,000 for 30,000 direct labor hours. During the past year, Lynwood generated the following data:
a. Actual production: 100,000 units
b. Fixed overhead volume variance: $20,000 U
c. Variable overhead efficiency variance: $18,000 F
d. Actual fixed overhead costs: $200,000
e. Actual variable overhead costs: $310,000 Required:
. Calculate the fixed overhead rate.
. Determine the fixed overhead spending variance.
. Determine the variable overhead spending variance.
. Determine the standard hours allowed per unit of product.
Problem
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Cornerstones Of Financial Accounting Current Trends Update
ISBN: 9781111527952
1st Edition
Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen