Required information The following information applies to the questions displaye

Question

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 2017 Direct material (20 Ibs. $2.50 per Ib.) Direct labor (18 hrs. $22.0e per hr.) Factory variable overhead (1e hrs. $4.00 per hr) Factory fixed overhead (18 hrs. $1.60 per hr.) Standard cost 58.00 220.80 40.00 16.00 $326.00 The S560 ($4 00 + $160) total overhead rate per direct labor hour is based on an expected operating level equal to 75% of the factory's capacity of 50,0 00 units per month. The following monthly flexible budget information is also available Operating Levels (3 of capacity) : 80s Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) 70% 35,000 350,000 75% 37,500 375,000 8e3 40,000 400,000 Variable overhead Fixed overhead Total overhead $1,400,000 $1,500,000 $1,600,000 600,000 600,000 600,000 52,000,000 $2,100,000 $2,200,000

Explanation / Answer

.1)

Predetermind overhead rate per hour @75% CAPACITY LEVEL

2?)CALCULATION OF TOTAL OVERHEAD VERIANCE AT 70% CAPACITY LEVEAL

STANDERD

?DL HOURS

OVER HEAD

?RATE APPLIED

STANDERED

?OH COST $

ACTUAL

RESULT $

NOTE

?Production at 70% capacity leval =50000*70%

? =35000

standerd hours required for actual production=35000*10hr/unit

   =350000hrs

particulars VOH FOH TOTAL OH BUDGETED OVERHEAD COST$ A 1500000 600000 2100000 BUDGETED DL HORS    B 375000 375000 375000 RATE PERHOUR    A/B    4 1.6    5.6

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.