Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi all - looking for help with the red boxes. Those answers are incorrect. Thank you Expand Your Critical Thinking 24-02 a-d Ana Carillo and

image text in transcribedimage text in transcribed

Hi all - looking for help with the red boxes. Those answers are incorrect.

Thank you

image text in transcribedimage text in transcribed
Expand Your Critical Thinking 24-02 a-d Ana Carillo and Associates is a medium-sized company located near a large metropolitan area in the Midwest. The company manufactures cabinets of mahogany, oak, and other fine woods for use in expensive homes, restaurants, and hotels. Although some of the work is custom, many of the cabinets are a standard size. One such non-custom model is called Luxury Base Frame. Normal production is 1,000 units. Each unit has a direct labor hour standard of 5 hours. Overhead is applied to production based on standard direct labor hours. During the most recent month, only 1,030 units were produced; 4,500 direct labor hours were allowed for standard production, but only 4,000 hours were used. Standard and actual overhead costs were as follows. Standard Actual (1,000 (1,030 units) units) Indirect materials $ 13,900 $ 14,300 Indirect labor 50,000 59,300 (Fixed) Manufacturing supervisors salaries 26,200 25,600 (Fixed) Manufacturing office employees salaries 15,100 14,500 (Fixed) Engineering costs 31,400 29,100 Computer costs 11,600 11,600 Electricity 2,900 2,900 (Fixed) Manufacturing building depreciation 9,300 9,300 (Fixed) Machinery depreciation 3,500 3,500 (Fixed) Trucks and forklift depreciation 1,700 1,700 Small tools 800 1,600 (Fixed) Insurance 600 600 (Fixed) Property taxes 400 400 Total $167,400 $174,400 X Your answer is incorrect. Try again. Determine the overhead application rate. (Round answer to 2 decimal places, e.g. 15.75.) Overhead application rate 38.75 per direct labor hour LINK TO TEXT X Your answer is incorrect. Try again. Determine how much overhead was applied to production. Applied overhead 155000Your answer is partially correct. Try again. Calculate the total overhead variance, controllable variance, and volume variance. (Round variable overhead to 2 decimal places and final answers to 0 decimal places, e.g. 1,575.) Total overhead variance -7000 Unfavorable Controllable variance 4624 Unfavorable Volume variance 2376 Unfavorable LINK TO TEXT * Your answer is incorrect. Try again. Decide which overhead variances should be investigated. Controllable variance # Click if you would like to Show Work for this question: Open Show Work

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

Payroll Accounting 2019

Authors: Jeanette Landin, Paulette Schirmer

5th edition

125991707X, 978-1259917073

More Books

Students also viewed these Accounting questions