Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Rodiguez Company uses standard costing in its manufachiring plant for auto parts. The standard cost of a particular auto part, based on a denominator

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The Rodiguez Company uses standard costing in its manufachiring plant for auto parts. The standard cost of a particular auto part, based on a denominator level of 4,300 output units per year, included 5 machine hours of variable manulacturing overhead at 57 per hour and 5 machine hours of foxed manulacturing overthead at 513 per hour. Actual outpet produced was 4,700 units Variable manulacturing overhead incurred was 5245,000 . Foed manufacturing overhead incurred was 5390,000 . Actual machine hours were 28,000 . Resd the requirements Requirement 1. Prepare an analysis of all variable manufacturing overhead and foced manufacturing overhead variances, using the 4 variance analysis. Begin by calculating the following amounts for the variable everthead Now complete the 4 varlance analysts using the amounts you calcutated above (it no variance exhts, leave the dollat value blank label the variance as favorable (F), tanfive (U) or never a variance (N)) explanations from any joumal entries ) Record the variable manufacturing overhead allocated. he Rodriguez Company uses standard costing in its manufacturing plant for auto parts. The standard cost of a particular auto part, based on a denor inits per year, included 5 machine-hours of variable manufacturing overhead at $7 per hour and 5 machine-hours of fixed manufacturing overhead at roduced was 4,700 units. Variable manufacturing overhead incurred was $245,000. Fixed manufacturing overhead incurred was $390,000. Actual ma Read the requirments Record the variable manulacturing overhead variances for the period Record the actual foced overhead costs incurred. Record the actual fixed overhead costs incurred. Record the fixed overhead costs allocated. Record the fixed overhead costs allocated. Record the foxed overhead variances for the period. Requirement 3. Describe how individual foced manufacturing overhead items are controlled from day to day Individual foced manufacturing overhead items are affected very much by day-to-day control. They are controlled Requirement 3, Describe how individual fixed manufacturing ovechead items are controlled from day to day. Individual fred manufachuring overhead iterns are affected very much by day-to-day control. They are controlled Requirement 4. Discuss poseble causes of the foed mandachuring oventead variances The fived overhead variance is caused by the adual reafization of fiod costs dittering from the bodgeted ansounts in this examplo, the variance is so actual FOM is the budgeted amount of FOH 1 . The fixed overhead: variance is caused by peoduction being over or under nxpected capacity, You may be unser capacity when demand from expected loveh, or it there are problems with production Over capacly is usualy driven by The fact that there is a variance indicates that

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions