Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below} Sedona Company set the following standard costs for one unit of its product for

image text in transcribedimage text in transcribed
Required information [The following information applies to the questions displayed below} Sedona Company set the following standard costs for one unit of its product for this year. Direct material (23 Ibs. 3 $3.33 per Ib.) $ 24.33 Direct labor E13 hrs. 9 $3.33 per hr.) 33.33 Variable overhead [13 hrs. 3 $4.23 per hr.)- 42.33 Fined overhead l[13 hrs. 9 $2.33 per hr.) 23.33 Total standard cost $22.33 The $6.50 {$4.23 + $2.30} total overhead rate per direct labor hour is based on an expected operating level equal to 20% of the factory's capacity of 62,003 units per month. The following monthly exible budget information is also available. meratirg Leveh. {i of capacity) Flexible Budget 65K 23% 25K Budgeted output (units) 43,333 43,433 46,533 Budgeted labor {standard hours] 433,333 434,333 465,333 Budgeted overhead [dollars]- Variable overhead $1,692,633 $1,322,333 $1,953,333 Fixed overhead 993,233 993,233 993,233 Total overhead $2,593,333 $2,321,333 $2,951,233 During the current month, the company operated at 65% of capacity, employees worked 333,003 hours, and the following actual overhead costs were incurred. Variable overhead costs $1,553,333 Fixed overhead costs 1,348,333 Total overhead costs $2,593,333 {1 l ICompute the predetermined overhead application rate per hour for total overhead, variable overhead, and xed overhead. momma\"... Total overhead costs {2} Compute the total variable and total xed overhead varianoes and classify each as favorable or unfavorable. {Indicate the eect of each variance by selecting forfavorahle, unfavorable, and no varianoe. Round "Rate per hour\" answers to 2 decimal places.) mauve-meanness rummeamsts 15H = Actual Hours SH = Standard Hours AVE = Actual Variable Rate SVR = Standard Variable Rate 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances and classify each as favorable or unfavorable. 3. Compute the controllable variance. Conmlete lis question by entering vou- answer it le labs below. J Required 1 Required 2 Required 3 Compute the variable overhead spending and efciency varianoae. {Indicate the effect of each variance by selecb'ng for favorable, unfavorable. and no variance. Round "Rate per unit" to 2 decimal places.) Required 2 )

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_2

Step: 3

blur-text-image_3

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

Financial Accounting Tools for Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

5th Edition

9781118560952, 1118560957, 978-0470239803

More Books

Students also viewed these Accounting questions

Question

=+c. Insider trading is illegal. Why do you suppose that is?

Answered: 1 week ago