STANDARD COSTS AND VARIANCES Wakky Company produces widgets. In the table below,
ID: 2460826 • Letter: S
Question
STANDARD COSTS AND VARIANCES Wakky Company produces widgets. In the table below, the company has begin the calculation of the standard cost to make one widget. Using the standard manufacturing overhead data provided, complete the table below to show the total manufacturing cost of one widget. The standards are to be computed based upon normal annual production of 70,000 widgets for the year, with factory overhead applied based on direct labor hours. At the beginning of the year, management made the following estimates related to overhead: Standard FOH Costs: For Normal Capacity - (estimated at the beginning of the year for a production level of 70,000 widgets): Estimated annual variable overhead costs = $808,500 Estimated annual fixed overhead costs = $241,500 Total estimated annual overhead costs = $1,050,000 Total estimated annual direct labor hours (DLH) at 100% of normal capacity (70,000 widgets) = 105,000 Total DLHs Variable factory overhead rate per direct labor hour = per DLH Fixed factory overhead rate per direct labor hour = per DLH Predetermined factory overhead rate per DLH = per DLH 1. Complete the Standard Cost Report: Wakky Company Standard Cost Report Product manufactured = Widgets Unit of Product = One Widget Manufacturing Cost Elements Standard Quantity Standard Price Standard Cost Direct materials 3 pounds $5.00 per pound Direct labor 1.5 DLHs $12.00 per DLH Factory overhead applied: Variable FOH 1.5 DLHs per DLH Fixed FOH 1.5 DLHs per DLH Calculated standard cost to manufacture 1 widget 2. Calculate the standard costs allowed for the actual output level of widgets: Standard cost @ 75,000 widgets Total Direct materials cost $ per lb. total lbs allowed Direct labor cost $ per DLH total DLH allowed Factory overhead applied $ PFOH Rate total DLH allowed Standard cost allowed for actual output level Actual Production The actual cost and amounts of input to make the actual output of 75,000 widgets for the year ended December 31, 2013 was: Total Direct materials: 230,000 lbs @ $4.50 per pound Direct labor: 111,000 DLH @ $13.25 per DLH Factory Overhead (FOH): Total variable FOH costs $850,000 Total fixed FOH costs $241,500 Total actual FOH costs for 2013 Actual cost for actual output level 3. Calculate the total manufacturing cost variance STANDARD COSTS AND VARIANCES Wakky Company produces widgets. In the table below, the company has begin the calculation of the standard cost to make one widget. Using the standard manufacturing overhead data provided, complete the table below to show the total manufacturing cost of one widget. The standards are to be computed based upon normal annual production of 70,000 widgets for the year, with factory overhead applied based on direct labor hours. At the beginning of the year, management made the following estimates related to overhead: Standard FOH Costs: For Normal Capacity - (estimated at the beginning of the year for a production level of 70,000 widgets): Estimated annual variable overhead costs = $808,500 Estimated annual fixed overhead costs = $241,500 Total estimated annual overhead costs = $1,050,000 Total estimated annual direct labor hours (DLH) at 100% of normal capacity (70,000 widgets) = 105,000 Total DLHs Variable factory overhead rate per direct labor hour = per DLH Fixed factory overhead rate per direct labor hour = per DLH Predetermined factory overhead rate per DLH = per DLH 1. Complete the Standard Cost Report: Wakky Company Standard Cost Report Product manufactured = Widgets Unit of Product = One Widget Manufacturing Cost Elements Standard Quantity Standard Price Standard Cost Direct materials 3 pounds $5.00 per pound Direct labor 1.5 DLHs $12.00 per DLH Factory overhead applied: Variable FOH 1.5 DLHs per DLH Fixed FOH 1.5 DLHs per DLH Calculated standard cost to manufacture 1 widget 2. Calculate the standard costs allowed for the actual output level of widgets: Standard cost @ 75,000 widgets Total Direct materials cost $ per lb. total lbs allowed Direct labor cost $ per DLH total DLH allowed Factory overhead applied $ PFOH Rate total DLH allowed Standard cost allowed for actual output level Actual Production The actual cost and amounts of input to make the actual output of 75,000 widgets for the year ended December 31, 2013 was: Total Direct materials: 230,000 lbs @ $4.50 per pound Direct labor: 111,000 DLH @ $13.25 per DLH Factory Overhead (FOH): Total variable FOH costs $850,000 Total fixed FOH costs $241,500 Total actual FOH costs for 2013 Actual cost for actual output level 3. Calculate the total manufacturing cost varianceExplanation / Answer
Answer 1
Answer 2
Answer 3
Estimated annual variable overhead costs 808500 Estimated Direct Labour hours 105000 Variable factory overhead rate per direct labor hour 808500/105000 7.70 Estimated annual fixed overhead costs 241500 Estimated Direct Labour hours 105000 Fixed factory overhead rate per direct labor hour 808500/105000 2.30 Manufacturing Cost Elements Standard Quantity (A) Standard Price (B) Standard Cost (A*B) Direct materials cost 3 pounds 5 per pound 15 Direct labor cost 1.5 DLHs 12 per DLH 18 Factory overhead applied (7.7+2.3) Variable Factory Overhead 1.5 DLHs 7.7 per DLH 11.55 Fixed Factory Overhead 1.5 DLHs 2.3 per DLH 3.45 standard cost to manufacture 1 widget 48Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.