Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Baird Company makes classic Polish sausage. The company uses a standard cost system to help control costs. Manufacturing overhead is applied to production on the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Baird Company makes classic Polish sausage. The company uses a standard cost system to help control costs. Manufacturing overhead is applied to production on the basis of standard direct labor-hours. According to the company's planning budget, the following manufacturing overhead costs should be incarred at an activity level of 26,000 labor-hours (the denominator activity level); Variable manufacturing overhead coat Fixed manufacturing overhead cost Total nanutacturing overhead cost $ 123,500 175,500 $ 299,000 During the most recent year, the following operating results were recorded: 23,000 24,000 Activity: hotel labor-hours worked Standard labor-hours allowed for the actual output Costi Actual variable manufacturing overhead cost incurred Actual fixed manufacturing overhead coat focurred 5 142.600 $ 156,000 At the end of the year, the company's Manufacturing Overhead account contained the following data Act Manutseturing Overhead 298,600 Applied 22.600 276.000 Management would like to determine the cause of the $22,600 underapplied overhead. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the predetermined overhead rate. Break the rate down into variable and fixed cost elements. (Round your answers to 2 decimal places.) Predetermined overhead rate Variable element per hour per hour per hour Fixed element Required Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Show how the $276,000 Applied figure in the Manufacturing Overhead account was computed. (Round your per hour value to 2 decimal places.) per hour Required 1 Required 2 Required 3 Breakdown the $22,600 underapplied overhead into four components: (1) variable overhead rate variance, (2) variable overhead efficiency variance, (3) fixed overhead budget variance, and (4) fixed overhead volume variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.) Show less Variable overhead Rate variance Efficiency varianco Fixed overhead: Budget variance Volume variance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Inventory

Authors: Steven M. Bragg

4th Edition

1642210714, 9781642210712

More Books

Students also viewed these Accounting questions