Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Flandro Company uses a standard cost system and sets its predetermined overhead rate on the basis of direct labor-hours. The following data are taken from

image text in transcribed
image text in transcribed
Flandro Company uses a standard cost system and sets its predetermined overhead rate on the basis of direct labor-hours. The following data are taken from the company's planning budget for the current year Denominator activity (direct labor-hours) Variable manufacturing overhead cost Fixed manufacturing overhead cost 5,800 25,600 $59,000 The standard cost card for the company's only product is given below Standard Cost Standard Quantity or Hours 3 yards 1 hour 12 per hour 1 hour16.80 per hour Standard Price or Rate -Inputs Direct materials Direct labor Manufacturing overhed Total standard cost per unit 4.40 per yard13.20 12.00 16.80 42.00 During the year, the company produced 6.000 units of product and incurred the following actual results: Materials purchased, 24,000 yards at $4.80 per yand Materials used in production (in yards) Direct labor cost incurred, 5,880 hours at $13 per hour Variable manufacturing overhead cost incurred Fixed manufacturing overhead cost incuered 115,20e 18,500 575,400 $ 29,588 60,408 Required 1, Create a new standard cost card that separates the variable manufactuing ovehead per unit and the fiwed manufacturing overhead per unit Direct labor cost incurred, 5,889 hours at $13 per hour Variable manufacturing overhead cost incurred Fixed manufacturing overhead cost incurred s 75,488 29,588 $ 68,488 Required: 1. Create a new standard cost card that separates the variable manufacturing overhead per unit and the fixed manufacturing overhead per unit 2. Compute the materials price and quantity varlances. Also, compute the labor rate and efficiency variances. 3. Compute the variable overhead rate and efficiency variances. Also, compute the fixed overhead budget and volume variances. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Create a new standard cost card that separates the varlable manufacturing overhead per unit and the fixed manufacturing overhead per unit. (Round your answers to 2 decimal places.) Direct materials Direct labor Vanable manuflacturing overhead Foxed manufacturing overhead Standard cost per unit yards at DLH DLH DLH per yard per DLH por DLH per DLH Required 2

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

Step: 3

blur-text-image

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

Budgeting Auditing And Evaluation Functions And Integration In Seven Governments

Authors: Andrew Gray

1st Edition

0765807246, 9780765807243

More Books

Students also viewed these Accounting questions

Question

=+and show that the infimum and supremum are always achieved.

Answered: 1 week ago