how to do 1. Compute the activity overhead rates using ABC. Form cost pools as appropriate.

2. Determine the overhead costs to assign to the following jobs using ABC.

3. What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286?

how to do

1. Compute the direct material price, direct material quantity, and total direct material cost variances.

2. Compute the direct labor rate, direct labor efficiency, and total direct labor cost variances

3. Compute the variable overhead spending and efficiency variances.

4. Compute the fixed overhead spending and efficiency variances.

ABC & Flexible Budgets-Homework Handout PROBLEM C-1A (page C-13 in Fundamental Accounting Principles, 23 ed.) Craftmore Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records Other Production ActivityaborMaterials Overhead $320,000 $135,000 Product modification600,000 Providing power. System calibration500,000 255,000 Additional information on the drivers for its production activities follows. Grinding..13,000 machine hours 13,000 machine hours Product modification1,500 engineering hours Providing power17,000 direct labor hours System c 400 batches 1. Compute the activity overhead rates using ABC. Form cost pools as appropriate. 2. Determine the overhead costs to assign to the following jobs using ABC Job 317S 200 550 26 30 500 Job 4286 Number of units... Machine hours... Engineering hours... 5,500 32 90 4,375 Direct labor hours. 3. What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286? ABC & Flexible Budgets-Homework Handout PROBLEM 23-4A (page 1032 in Fundamental Accounting Principles, 23 ed.) Trico Company set the following standard unit costs for its single product: $120 70 40 Direct materials (30 lbs$4 per l Direct labor (5 hrs $14 per hr) Factory overhead-variable (5 hrs $8 per Factory overhead-fixed (5 hrs @ $10 per h Total standard c The predetermined overhead rate is based on planned operating volume of 80% of the productive capacity of 60,000 units per quarter. The following flexible budget information is available. Levels 70% 80% 90% Production in Standard direct labor Budgeted overhead 42,000 210,000 48,000 240,000 54,000 270,000 Fixed factory overhead$2,400,000 $2,400,000 $2,400,000 Variable factory overhead.. $1,680,000 $1,920,000 $2,160,000 During the current quarter, the company operated at 90% of capacity and produced 54,000 units of product; actual direct labor totaled 265,000 hours. Units produced were assigned the following standard costs: 6,480,000 3,780,000 4,860,000 15,120,000 Direct materials (1,620,000 lbs @$4 per l Direct labor (270,000 hrse $14 per hr) Factory overhead (270,000 hrs$18 per Total standard c Actual costs incurred during the current quarter follow: 6,621,500 3,643,750 2,350,000 2,200,000 $14.815,250 Direct materials (1,615,000 lbs$4.10 per Direct labor (265,000 hrs$13.75 per Fixed factory overhead c Variable factory overhead Total actual c Required 1. Compute the direct material price, direct material quantity, and total direct material cost variances Compute the direct labor rate, direct labor efficiency, and total direct labor cost variances Compute the variable overhead spending and efficiency variances. 2. 3. 4. Compute the fixed overhead spending and efficiency variances