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 somemanufacturing overhead
data forCulinaryCulinary
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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