Sedona Company set the following standard costs for one unit of its product for

Question

Sedona Company set the following standard costs for one unit of its product for 2015 Direct material (15 lbs.$4.20 per Ib.) Direct labor (10 hrs. @$6.40 per hr.) Factory variable overhead (10 hrs.$3.70 per hr) Factory fixed overhead (10 hrs.$1.50 per hr.) $ 63.00 64.00 3700 15.00 Standard cost $ 179.00 The $5.20 ($3.70 $1.50) total overhead rate per direct labor hour is based on an expected operating level equal to 65% of the factory's capacity of 67,000 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) 60% 40,200 402,000 65% 70% 43,550 435,500 46,900 469,000 Variable overhead Fixed overheac $ 1487,400 $ 1,611,350 $ 1,735,300 653,250 653,250 653,250 Total overhead $ 2.140,650 2,264,600 $ 2,388,550 During the current month, the company operated at 60% of capacity, employees worked 382,000 hours, and the following actual overhead costs were incurred. $1,425,000 725,250 Variable overhead costs Fixed overhead costs Total overhead costs $2150,250

Explanation / Answer

SEDONA COMPANY Actual Variable Overhead cost Flexible Budget Standard cost ( VOH applied) $                                                                        1,425,000.00 $     1,487,400.00 $                           1,487,400.00 Variable Overhead Efficiency variance SH=Stanadard hour for actual Output SR(AH-SH) $                                                                         (740,000.00) (F) Variable overhead Spending Variance= Actual Variable Overhead-Budgeted Variable Overhead $                                                                            (62,400.00) (F) Actual Fixed Overhead Cost Flexible Budget Standard cost(FOH) Applied $                                                                            725,250.00 $         653,250.00 $                               603,000.00 Fixed Overhead Spending Variance= Actual Fixed Overhead-Budgeted Fixed Overhead $           72,000.00 (U) Fixed Overhead Volume Variance= Budgeted Fixed Overhead-Absorbed Fixed Overhead $           50,250.00 (U) Overhead Controllable Variance Actual Overhead $     2,150,250.00 Applied overhead at 60% Capacity(From Flexible Budget($1487400+$653250) $     2,140,650.00 $             9,600.00 (U)

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

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