Q.A company has established a flexible budget for manufacturing overhead costs based on direct labor hours. Budgeted Costs for 100,000 direct labor costs are as follows:

Variable Costs (total): Packing Supplies- $140,000. Indirct Labor- $180,000.

Fixed Costs(total): Utilities- $100,000. Rent- $40,000. Insurance- $20,000.

If the company plans to operate at 90,000 direct labor hours during the next period, the flexible budget would show indirect labor costs of how much dollars?

Q. A company uses direct labor hours(DLH) as the measure of activity. Data from flexible budget is as follows:

Denominator of Activity- 7,400 DLH

Overhead costs of denominator level of Activity: Variable overhead costs- $56,980. Fixed overhead costs- $95,090.

The following data relate to operations in the last period:

Actual Hours- 7,800 DLH. Standard hours allowed for the actual output- 7,700 DLH. Actual total variable overhead costs- $58,890. Actual Fixed Overhead Costss- $95,990

What is the approximate pre-determined overhead rate?

Q. A company uses direct labor hours(DLH) as the measure of activity. Data from flexible budget is as follows:

Denominator of Activity- 7,400 DLH

Overhead costs of denominator level of Activity: Variable overhead costs- $56,980. Fixed overhead costs- $95,090.

The following data relate to operations in the last period:

Actual Hours- 7,800 DLH. Standard hours allowed for the actual output- 7,700 DLH. Actual total variable overhead costs- $58,890. Actual Fixed Overhead Costss- $95,990

Assuming the standard variable overhead rate is 7.70 per DLH, how much variable overhead was applied to products during the last period?

Q. .A company has established a flexible budget for manufacturing overhead costs based on direct labor hours. Budgeted Costs for 100,000 direct labor costs are as follows:

Variable Costs (total): Packing Supplies- $140,000. Indirct Labor- $180,000.

Fixed Costs(total): Utilities- $100,000. Rent- $40,000. Insurance- $20,000.

The fixed budget for factory overhead would show the variable overhead per direct labor hour is?

Q. .A company has established a flexible budget for manufacturing overhead costs based on direct labor hours. Budgeted Costs for 100,000 direct labor costs are as follows:

Variable Costs (total): Packing Supplies- $140,000. Indirct Labor- $180,000.

Fixed Costs(total): Utilities- $100,000. Rent- $40,000. Insurance- $20,000.

In an activity level of 70,000 direct labor hours, the flexible budget would show the budgeted amount for utilities is?

Q. A company uses direct labor hours(DLH) as the measure of activity. Data from flexible budget is as follows:

Denominator of Activity- 7,400 DLH

Overhead costs of denominator level of Activity: Variable overhead costs- $56,980. Fixed overhead costs- $95,090.

The following data relate to operations in the last period:

Actual Hours- 7,800 DLH. Standard hours allowed for the actual output- 7,700 DLH. Actual total variable overhead costs- $58,890. Actual Fixed Overhead Costss- $95,990

Assuming the standard variable overhead rate is $7.70 per DLH, what is the variable overhead spending variance for the last period? Also tell if favourable or unfavorable?