1) Newark Plastics Corporation
2)
Newark Plastics Corporation developed its overhead application rate from the annual budget. The budget is based on an expected total output of 732.000 units requiring 3.660.000 machine hours. The company is able to schedule production uniformly throughout the year. Machine hours is the cost driver for overhead costs. A total of 73.000 units requiring 311,100 machine hours were produced during May. Actual overhead costs for May amounted to $1,140.200. The actual costs, as compared to the annual budget and to one-twelfth of the annual budget, are as follows: NEWARK PLASTICS CORPORATION Annual Budget Per Total Per Machine Monthly Actual Costs Amount Unit Hour Budget for May Variable overhead: Indirect material $ 3,220, 809 $ 4.40 $0.88 $ 268,400 $ 286,400 Indirect labor 2,488,888 0.68 207,400 207,490 Fixed overhead: Supervision 2,269, 200 3.10 189, 109 183,100 Utilities 2,196, eee 3.ee 9.60 183, e88 201, eee Depreciation 3, 147,600 4.30 8.86 262,3ee 262,300 Total $13,322,400 $18.20 $3.64 $1,110,200 $1,140,200 3.48 8.62 Required: 1. Prepare a schedule showing the following amounts for Newark Plastics for May. 4. Applied overhead costs. b. Variable-overhead spending variance. c. Fixed-overhead budget variance. d. Variable-overhead efficiency variance. e. Fixed-overhead volume variance. Complete this question by entering your answers in the tabs below. Reg 1A Rea 13 and 1D Reg 1C and 1E Applied overhead costs. Applied overhead costs Reg 1A Req 13 and 1D > Required: 1. Prepare a schedule showing the following amounts for Newark Plastics for May. a. Applied overhead costs. b. Variable-overhead spending variance. c. Fixed-overhead budget variance. d. Variable-overhead efficiency variance. e. Fixed-overhead volume variance. Complete this question by entering your answers in the tabs below. Reg 1A Req 18 and 1D Req 1C and 1E Variable-overhead Spending Variance and Efficiency Variance. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect i.e., zero variance). Round "Projected Overhead" and "Flexible Budget" to 2 decimal places.) Variable Overhead Actual Overhead Spending Variance Budgeted Overhead at Actual Hours Efficiency Variance Flexible Budget (Applied Overhead) Machine hours Required: 1. Prepare a schedule showing the following amounts for Newark Plastics for May. a. Applied overhead costs. b. Variable-overhead spending variance. c. Fixed-overhead budget variance. d. Variable-overhead efficiency variance. e. Fixed-overhead volume variance. Complete this question by entering your answers in the tabs below. Reg 1A Req 18 and 1D Req 1C and 1E Fixed-overhead Budget Variance and Volume Variance. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance). Round "Applied Overhead" to 2 decimal places.) Fixed Overhead Actual Overhead Budget Variance Flexible Budget Volume Variance Applied Overhead Machine hours Ren 1R and 10 Bertrands Chillco Corporation produces containers of frozen food. During April. Chillco produced 740 cases of food and incurred the following actual costs. Variable overhead Fixed overhead Actual labor cost (3,800 direct-labor hours) Actual material cost (19,280 pounds purchased and used) $ 6,800 9,209 61, see 53,20 Overhead is budgeted and applied using direct-labor hours in a standard costing system. Standard cost and annual budget information are as follows: Standard Costs per Case Direct labor (3 hours at $20 per hour) Direct material (25 pounds at $2.50 per pound) Variable overhead (3 direct-labor hours at $2.10 per hour) Fixed overhead (3 direct-labor hours at $3 per hour) Total $ 60.00 62.50 6.30 9.ee $137.80 Annual Budget Information Variable overhead $ 63, eee Fixed overhead $ 99, eee Planned activity for year 30,808 direct - labor hours Required: Compute the following cost variances from the available data. (Indicate the effect of each varlance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (l.e., zero varlance). Do not round Intermediate calculations.) Direct-material price variance Direct-material purchase price variance Direct-material quantity variance Direct-labor rate variance Direct-labor efficiency variance Variable-overhead spending variance Variable-overhead efficiency variance Fixed-overhead budget variance Fixed-overhead volume variance
