Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mantuach Printing is a highly automated printing company. Mantuach allocates factory overhead based on machine hours. During a recent month, 310 machine hours were worked.

Mantuach Printing is a highly automated printing company. Mantuach allocates factory overhead based on machine hours. During a recent month, 310 machine hours were worked. These machine hours resulted in the production of 30,000 books. The production standards have an objective of 100 books per machine hour. Facts about budgeted and actual factory overhead are as follows:
Actual total variable factory overhead for the month was $250,000.
Variable factory overhead was estimated and applied at $800 per machine hour.
Actual total fixed factory overhead for the month was $120,000.
Fixed factory overhead was estimated and applied at $450 per machine hour.
Mantuach based the fixed overhead allocation rates on an assumed production level of 28,000 books.
(1) Calculate the overhead variances.
(2) Prepare journal entries to apply factory overhead to production, and record the related variances.

Worksheet for part (1)

(a) Variable overhead variances
Actual hours
Actual cost of variable overhead
Actual output
Standard hours per unit (1/100)
Standard hours to achieve output
Standard rate per hour
Standard cost of variable overhead
Actual use at standard cost
Total variable overhead variance
Variable overhead spending variance
Variable overhead efficiency variance
(b) Fixed overhead variances
Actual cost of fixed overhead
Actual output
Standard hours per unit (1/100)
Standard hours to achieve output
Standard rate per hour
Standard cost of fixed overhead
Budgeted fixed overhead
Total fixed overhead variance
Fixed overhead spending variance
Fixed overhead volume variance

Worksheet for part (2)

GENERAL JOURNAL
Date Accounts Debit Credit

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

Information Technology Control And Audit

Authors: Sandra Senft, Frederick Gallegos, Aleksandra Davis

4th Edition

1439893209, 978-1439893203

More Books

Students also viewed these Accounting questions

Question

Are there solutions for the comprehensive problem 3 Chapter 11

Answered: 1 week ago