Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[The following information applies to the questions displayed below. Sedona Company set the following standard costs for one unit of its product for 2015. Direct

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

[The following information applies to the questions displayed below. Sedona Company set the following standard costs for one unit of its product for 2015. Direct material (20 lbs. $2.50 per lb.) Direct labor (10 hrs. $8.00 per hr.) Factory variable overhead (10 hrs. $4.00 per hr) Factory fxed overhead (10 hrs. $1.60 per hr.) $50.00 80.00 40.00 16.00 Standard cost $186.00 The $5.60 ($4.00+$1.60) total overhead rate per direct labor hour is based on an expected operating level equal to 75% of the factory's capacity of 50,000 units per month. The following monthly flexible budget information is also available Operating Levels (% of capacity) Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) 70% 35,000 350,000 80% 40,000 400,000 75% 37,500 375,000 $1,400,000 $1,500,000 1,600,000 Varlable overhead Fixed overhead 600,000 600,000 600,000 Total overhead $2,000,000 2,100,000 2,200,000 During the current month, the company operated at 70% of capacity, employees worked 340,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs $1,375,000 628,600 Total overhead costs $2,003,600

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

Management Accounting Text Problems And Cases

Authors: M. Y. Khan, P K Jain

7th Edition

9352606787, 978-9352606788

More Books

Students also viewed these Accounting questions

Question

define sickness absence and sickness presence;

Answered: 1 week ago