Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output $ 515,900 $509,000 67,000 68,000 65,000 Required: 1. Compute the fixed portion of the predetermined overhead rate for the year. (Round Fixed portion of the predetermined overhead rate to 2 decimal places.) 2. Compute the fixed overhead budget variance and volume variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance.). Input all amounts as positive values.) per DLH 1. Fixed portion of the predotormined overhead rate 2. Budget variance Volume variance TER TEN II: REQUIRED HOMEWORK Saver Help Save & Exit Check my Norwall Company's budgeted variable manufacturing overhead cost is $170 per machine-hour and its budgeted foed manufacturing overhead is $56.088 per month The following Information is available for a recent month a. The denominator activity of 19,680 machine-hours is used to compute the predetermined overhead rate. b. Ata denominator activity of 19,680 machine-hours, the company should produce 8.200 units of product c. The company's actual operating results were: ak Number of units produced Actunl machine-hours Actual variable manufacturing overhead cost Actual fixed manufacturing overhead cout 8,930 21,010 $33,616.00 $60,700.00 Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. (Round your answers to 2 decimal places.) 2. Compute the standard hours allowed for the actual production. 3. Compute the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances. (Indicate the effect of each variance by selecting "P" for favorable, "U" for unfavorable, and "None" for no effect (ie., zero variance). Input all amounts as positive values. Round your intermediate calculations and final answers to 2 decimal places.) ces 1. Predetermined overhead rate Variable element Fixed element 2. Standard hours allowed for the actual production 3. Variable overhead rate variance Variable overhead officiency variance per MH per MH por MH MHS Selected information relating to Yost Company's operations for the most recent year is given below: Activity: Denominator activity (machine-hours) Standard hours allowed per unit Actual number of units produced Costst Actual fixed overhead costs incurred Fixed overhead budget variance 20,600 1.5 13,000 $ 92,000 $ 2,760 P The company applies overhead cost to products on the basis of standard machine-hours. Required: 1. What were the standard machine-hours allowed for the actual number of units produced? 2. What was the total budgeted fixed overhead cost for the period? 3. What was the fixed portion of the predetermined overhead rate? (Round "Predetermined overhead rate" to 2 decimal place.) 4. What was the fixed overhead volume variance? (Indicate the effect of variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) MHS 1. Standard machine-hours allowed for the actual number of units produced 2. Budgeted fixed overhead cost 3. Fixed portion of the predetermined overhead rate 4. Fixed overhead volume variance per MH Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost is applied on the basis of standard direct labor-hours. The budgeted variable manufacturing overhead is $3.00 per direct labor-hour and the budgeted fixed manufacturing overhead is $735,000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $5,50 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $12.50 per hour. The company planned to operate at a denominator activity level of 105,000 direct labor-hours and to produce 70,000 units of product during the most recent year. Actual activity and costs for the year were as follows: Actual number of units produced Actual direct labor-hours worked Actual variable manufacturing overhead cost incurred Actual fixed manufacturing overhead cost incurred 84,000 136,500 $ 259,350 $ 750, 750 Required: 1. Compute the predetermined overhead rate for the year Break the rate down into variable and fixed elements. 2. Prepare a standard cost card for the company's product. 30. Compute the standard direct labor-hours allowed for the year's production 36. Complete the following Manufacturing Overhead T-account for the year. 4 Determine the reason for any underapplied or overapplied overhead for the year by computing the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances. Complete this question by entering your answers in the tabs below. Red 1 Reg 2 Re SA Reg 38 Req 4 Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed elements. (Round your answers to 2 decimal places)
