Cost Accounting chapter 7.

VOH allocation rate is 3.00. the one that may looks unclear on the picture.

F16 D $ $ $ B C Breakeven Blankets manufactures various types of blankets. The company has just received its actual figures for the month of November 20XX. Breakeven Blankets uses the write-off to COGS method for correcting the under/overallocation of overhead and uses a simple costing system with direct labor hours as its cost driver. During the month, all overhead 1 expenditures were paid in cash. 2 3 Standard per Blanket 4 Direct materials unit quantity 4.00 pounds of doth 5 Direct materials unit cost 3.00 per pound 6 Direct labor unit quantity 2.00 labor hours 7 Direct labor unit cost 14.00 per hour 8 VOH allocation rate 3. 9 FOH allocation rate $ 3.50 per hour 10 11 Actual Information 12 Actual output units 10,000 units 13 Actual pounds of material 37,000 pounds of doth 14 Actual price of material 3.25 per pound 15 Actual direct labor costs 296,000 16 Actual direct labor hours 18,500 hours 17 Actual labor price per hour 16.00 18 Actual VOH costs 54,000 19 Budgeted FOH costs 60,000 20 Actual FOH costs 56,000 21 Budgeted Sales Revenue 650,000 22 Actual Sales Revenue $ 590,000 Actual nonmanufacturing costs $ 63,750 Info Variances Journal SC Inc. Statement Closing Entry $ $ $ $ $ 23 24 A B D E Direct Materials Actual Costs Actual input quantity actual price Actual Input quantity* budgeted price Flex Budget Budgeted input quantity "budgeted price Price Variance Efficiency Variance Flex Budget Variance Direct Labor 1 Actual Costs Actual input quantity" actual price Actual input quantity budgeted price Flex Budget Budgeted input quantity * budgeted price 2 3 Price Variance Efficiency Variance 4 5 6 7 8 Flex Budget Variance 9 Variable Overhead 0 Actual Costs Actual input quantity budgeted rate Allocated (Flex Budget) Budgeted input quantity budgeted allocation rate Actual Costs 1 2 3 4 -5 Spending Variance Efficiency Variance Info Variances Joumal SC Inc. Statement Closing Entry Ad B D E Price Variance Efficiency Variance 13 14 15 16 17 18 19 20 Flex Budget Variance Variable Overhead Actual Costs Actual input quantity budgeted rate Allocated (Flex Budget) Budgeted input quantitybudgeted allocation rate Actual Costs Spending Variance Efficiency Variance 21 22 23 24 25 26 27 28 29 Flex Budget Variance Fixed Overhead Actual Costs Allocated (Flex Budget) Actual costs Budgeted Costs Budgeted input quantity adjusted for actual budgeted allocation rate 30 31 32 33 34 35 36 37 Spending Variance Production Volume Variance Flex Budget Variance Info Variances Journal SC Inc. Statement Closing Entry