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Compute the following quantities? (you should be able to do so in the prescribed

ID: 2528748 • Letter: C

Question

Compute the following quantities? (you should be able to do so in the prescribed?order):

1.

Budgeted number of? machine-hours planned

2.

Budgeted fixed manufacturing overhead costs per? machine-hour

3.

Budgeted variable manufacturing overhead costs per? machine-hour

4.

Budgeted number of? machine-hours allowed for actual output produced

5.

Actual number of output units

6.

Actual number of? machine-hours used per output unit

CulinaryCulinary

manufacturing overhead

CulinaryCulinary

20142014?:

Manufacturing Overhead

Actual Results

Flexible Budget

Allocated Amount

Variable

$62,771

$74,646

$74,646

Fixed

350,200

349,272

376,290

Budgeted number of output? units: 882

Planned allocation? rate:

2

?machine-hours per unit

Actual number of? machine-hours used: 1,531

?Static-budget variable manufacturing overhead? costs: $ 68,796

1.

Budgeted number of? machine-hours planned

2.

Budgeted fixed manufacturing overhead costs per? machine-hour

3.

Budgeted variable manufacturing overhead costs per? machine-hour

4.

Budgeted number of? machine-hours allowed for actual output produced

5.

Actual number of output units

6.

Actual number of? machine-hours used per output unit

CulinaryCulinary

Whiz manufactures premium food processors. The following are some

manufacturing overhead

data for

CulinaryCulinary

Whiz for the year ended December? 31,

20142014?:

Manufacturing Overhead

Actual Results

Flexible Budget

Allocated Amount

Variable

$62,771

$74,646

$74,646

Fixed

350,200

349,272

376,290

Budgeted number of output? units: 882

Planned allocation? rate:

2

?machine-hours per unit

Actual number of? machine-hours used: 1,531

?Static-budget variable manufacturing overhead? costs: $ 68,796

Explanation / Answer

1. Budgeted number of? machine-hours planned

Budgeted Number of Machine Hours Planned = 882 units * 2 = 1764 hours

2. Budgeted fixed manufacturing overhead costs per? machine-hour

Fixed Manufacturing Overhead Cost = $349,272/1764 = 198

3. Budgeted variable manufacturing overhead costs per? machine-hour

Budgeted Variable Manufacturing Overhead Cost = $68,796/1764 = $39

4. Budgeted number of? machine-hours allowed for actual output produced

Budgeted Number of Machine Hours allowed for actual output = $74,646/$39 = 1914 hours

5. Actual number of output units

Actual Number of Output units = 1914/2 = 957 units

6. Actual number of? machine-hours used per output unit

= 1531 hours /957 units = 1.6 machcine hours

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