G Colden Hopkins is a cost accountant and business analyst for Daisy Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct-cost categories direct materials and direct matuufacturing labor. He feels that manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon pounds of materials used Input Cost per Output Unit 3.30 0.3 b. $11 tb. $ 1.2 hrs. $19 hr. $ 22.80 Direct materials Direct manufacturing labor Manufacturing overhead Variable Fixed Standard manufacturing cost per 0.3 03 ID .b $6 $14 LBS LBS $ $ 1.80 4.20 s 32.10 400,000 12,500 8000 $12.00 Budgeted Annual 1 Production 2 Direct materials 3 purchased - Direct materials used Direct manufacturing 5 labor 6 Variable OH 7 Fixed OH 3 Actual production Ib Ib Ibs. 29,600 hr $22.00 hr $64,400 $152,000 27,000 units Actual Costs Incurred: Actual Input Quy * Actual Rate Actual Input Qty. X Budgeted Price Flexible Budget: Budgeted Input Qty. Allowed for Actual Output Budgeted Price Purchases Usage 1 Price Var EN Var Price Var Eff. Var Actual Costs Incurred Flexible Budget: Budgeted Input Qty. Allowed for Actual Output * Budgeted Rate Allocated: (Budgeted Input Qty. Allowed for Actual Output * Budgeted Rate) Actual Input Qty. * Budgeted Rate 22 23 -4 5 06 7 Direct 28 Materials 09 80 31 2 33 4 Direct 5 Manuf 6 Labor 37 38 09 30 31 12 33 34 15 36 37 18 29 0 Variable 51 ManufOH 2 33 54 5 66 7 8 09 0 51 2 13 A Fixed 5 Manuf. OH 56 7 68 9 0 1 2 "3 4 5 6 7 Total 8 Manut 9 Overhead 10 Never a Var Never a Var Spending var Elf Var Never a Var Never a Var. Flexible Budget Var Never a Variance Production Vol yar Flex Budget var Production Vol. Var. Spending Var EET Var Prod. Vol Var G Colden Hopkins is a cost accountant and business analyst for Daisy Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct-cost categories direct materials and direct matuufacturing labor. He feels that manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon pounds of materials used Input Cost per Output Unit 3.30 0.3 b. $11 tb. $ 1.2 hrs. $19 hr. $ 22.80 Direct materials Direct manufacturing labor Manufacturing overhead Variable Fixed Standard manufacturing cost per 0.3 03 ID .b $6 $14 LBS LBS $ $ 1.80 4.20 s 32.10 400,000 12,500 8000 $12.00 Budgeted Annual 1 Production 2 Direct materials 3 purchased - Direct materials used Direct manufacturing 5 labor 6 Variable OH 7 Fixed OH 3 Actual production Ib Ib Ibs. 29,600 hr $22.00 hr $64,400 $152,000 27,000 units Actual Costs Incurred: Actual Input Quy * Actual Rate Actual Input Qty. X Budgeted Price Flexible Budget: Budgeted Input Qty. Allowed for Actual Output Budgeted Price Purchases Usage 1 Price Var EN Var Price Var Eff. Var Actual Costs Incurred Flexible Budget: Budgeted Input Qty. Allowed for Actual Output * Budgeted Rate Allocated: (Budgeted Input Qty. Allowed for Actual Output * Budgeted Rate) Actual Input Qty. * Budgeted Rate 22 23 -4 5 06 7 Direct 28 Materials 09 80 31 2 33 4 Direct 5 Manuf 6 Labor 37 38 09 30 31 12 33 34 15 36 37 18 29 0 Variable 51 ManufOH 2 33 54 5 66 7 8 09 0 51 2 13 A Fixed 5 Manuf. OH 56 7 68 9 0 1 2 "3 4 5 6 7 Total 8 Manut 9 Overhead 10 Never a Var Never a Var Spending var Elf Var Never a Var Never a Var. Flexible Budget Var Never a Variance Production Vol yar Flex Budget var Production Vol. Var. Spending Var EET Var Prod. Vol Var
