apter 10 Help Save & Exit Submit The standard cost card for the single product m
ID: 2539447 • Letter: A
Question
apter 10 Help Save & Exit Submit The standard cost card for the single product manufactured by CutterI Standarod Direet labor Variable overhead Fixed overhead 4 yards 2.00 per yard 0.8 hours $ 14.00 per hour 0.8 hours 1.50 per hour 0.8 hours 11.20 1.20 4.00 per hour3.20 Total standard cost per unit Manufacturing overhead is applied to production on the basis of standard direct labor-hours. During the year, the company worked 8,920 hours and manufactured 10,900 units of product. Selected data relating to the company's fixed manufacturing overhead cost for ferencesthe year are shown below Pixed overhead Applied to Work irn 7 hours $7 per hour - $7 $35,800 Volume varianee, Required 1 What were the standard hours allowed for the year's production? 2. What was the amount of budgeted fixed overhead cost for the year? 3. What was the fixed overhead budget variance for the year? (Indicate the effect of each variance by selecting "F" for favorable, "U for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) 4. What activitv level did the companv use in settina the predetermined overhead rate for the vear?Explanation / Answer
1)standard hours allowed for production : standard hours per unit * actual production
= .8*10900
= 8720hours
2)Standard fixed overhead :actual units produced *standard fixed overhead cost
=8920*3.2
= $ 28544
budgeted fixed overhead = standard fixed overhead- volume variance
= 28544-1280
= 27264
3)fixed overhead budget variance =actual fixed overhead -Budgeted fixed overhead
=35800- 27264
= 8536 U
4)standard predetermined Fixed overhead per hour = budgeted fixed overhead /standard direct labor hours
4 = 27264 /SDLH
SDLH = 27264/4
= 6816 DLH
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.