Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year.

image text in transcribed
image text in transcribed
Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 8,100 hours. Variable costs: Indirect factory wages $24,300 Power and light 16,119 Indirect materials 12,879 Total variable cost $53,298 Fixed costs: Supervisory salaries 513,790 Depreciation of plant and equipment 35,360 Insurance and property taxes 10,790 Total fixed cost 59,940 Total factory overhead cost $113,238 During May, the department operated at 8,600 standard hours. The factory overhead costs incurred were indirect factory wages, $25,000 power and light, 516,010; Indirect materials. $13,900; supervisory sataries, $13,790; depreciation of plant and equipment, 535,360; and insurance and property taxes, $10.990. Required: Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 6.600 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your per unit computations to the nearest cent, if required. an amount box does not require an entry, leave it blank Tiger Equipment Inc. Factory Overhead Cost Variance Report-Welding Department For the Month Ended May 31 Normal capacity for the months.100 hrs. Previous Check My Work 3 mare Check My Works remaining Emal Instructor Save an alt Sub for Tiger Equipment Inc. Factory Overhead Cost Variance Report-Welding Department For the Month Ended May 31 Normal capacity for the month 8,100 hrs Actual production for the month 8,600 hrs. Actual Budget Unfavorable Variances Favorable Variances Variable costs: Indirect factory wages Power and light Indirect materials Total variable cost Fixed costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes 100 VIII 2000 Total fixed cost Total factory overhead cost Total controllable variances Excess hours used over normal at the standard rate for fixed factory overhead Previous Next > Check My Work 3 more Check My Work uses remaining Emad Instructor Save and Exit Submit Assignment for Grading

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

Introduction To Government And Not For Profit Accounting

Authors: Martin Ives, Joseph R. Razek, Gordon A. Hosch

5th Edition

0130464147, 978-0130464149

More Books

Students also viewed these Accounting questions

Question

=+5. Review the six categories of 50 strategies.

Answered: 1 week ago

Question

=+a. Consumer-Focused show benefits.

Answered: 1 week ago