Please don't give image format Use the following information for the Exercises below. (Algo)[The following information applies to the questions displayed below.]Sedona Company set the following standard costs for one unit of its product for this year.Direct material (15 pounds @ $3.40 per pound)Direct labor (10 hours@ $9.70 per DLH)Variable overhead (10 hours @ $4.90 per DLH)Fixed overhead (10 hours @ $2.00 per DLH)Standard cost per unitThe $6.90 ($4.90 + $2.00) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 41,300units, which is 70% of the factory's capacity of 59,000 units per month. The following monthly flexible budget informationis available.Flexible BudgetBudgeted production (units)Budgeted direct labor (standard hours)Budgeted overheadVariable overheadFixed overheadTotal overheadActual variable overheadActual fixed overheadActual total overheadShow Transcribed Text$ 1,816,000899,050$ 2,715,050AH = Actual HoursSH= Standard HoursAVR = Actual Variable RateSVR Standard Variable Rate$ 1,879,150826,000$ 2,705,150During the current month, the company operated at 65% of capacity, direct labor of 365,000 hours were used, and thefollowing actual overhead costs were incurred.Exercise 21-28A (Algo) Detailed overhead variances LO P51. Compute the variable overhead spending and efficiency variances.2. Compute the fixed overhead spending and volume variances.3. Compute the controllable variance.Operating Levels (% of capacity)65%70%75%38,350383,50044,250442,500Complete this question by entering your answers in the tabs below.$ 51.0097.0049.0020.00$ 217.00Flexible BudgetĆ41,300413,000$ 2,023,700826,000$ 2,849,700 $ 2,994,250$ 2,168,250826,000Required 1 Required 2 Required 3Compute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Ratper unit" to 2 decimal places.)Actual Variable OH CostStandard Cost (VOH applied) Required 1 Required 2Required 3Compute the fixed overhead spending and volume variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per unit" to 2decimal places.)Actual Fixed OH costShow Transcribed TextRequired 1 Required 2Fixed OH (Fixed Budgeted)Controllable varianceRequired 3Standard Cost (FOH applied)Compute the controllable variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)Controllable Variance

Variance is an analysis of difference between the actual result and budgeted result for an activity.…

Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Sedona Company set the following standard costs for one unit of its product for this year. Direct material (15 pounds @ $3.40 per pound) Direct labor (10 hours@ $9.70 per DLH) Variable overhead (10 hours @ $4.90 per DLH) Fixed overhead (10 hours @ $2.00 per DLH) Standard cost per unit $ 51.00 97.00 49.00 20.00 $ 217.00 The $6.90 ($4.90 + $2.00) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of units, which is 70% of the factory's capacity of 59,000 units per month. The following monthly flexible budget infor

Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Sedona Company set the following standard costs for one unit of its product for this year. Direct material (15 pounds @ $3.40 per pound) Direct labor (10 hours@ $9.70 per DLH) Variable overhead (10 hours @ $4.90 per DLH) Fixed overhead (10 hours @ $2.00 per DLH) Standard cost per unit $ 51.00 97.00 49.00 20.00 $ 217.00 The $6.90 ($4.90 + $2.00) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of units, which is 70% of the factory's capacity of 59,000 units per month. The following monthly flexible budget infor

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 64E: Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of...

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Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
Plata Company has identified the following overhead activities, costs, and activity drivers for the coming year: Plata produces two models of microwave ovens with the following activity demands: The companys normal activity is 21,000 machine hours. Calculate the total overhead cost that would be assigned to Model X using an activity-based costing system: a. 230,000 b. 240,000 c. 280,000 d. 190,000
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: The standard price paid per pound of direct materials is 1.60. The standard rate for labor is 8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows: The company expects to work 12,000 direct labor hours during the year; standard overhead rates are computed using this activity level. For every small stapler produced, the company produces two regular staplers. Actual operating data for the year are as follows: a. Units produced: small staplers, 35,000; regular staplers, 70,000. b. Direct materials purchased and used: 56,000 pounds at 1.5513,000 for the small stapler and 43,000 for the regular stapler. There were no beginning or ending direct materials inventories. c. Direct labor: 14,800 hours3,600 hours for the small stapler and 11,200 hours for the regular stapler. Total cost of direct labor: 114,700. d. Variable overhead: 607,500. e. Fixed overhead: 350,000. Required: 1. Prepare a standard cost sheet showing the unit cost for each product. 2. Compute the direct materials price and usage variances for each product. Prepare journal entries to record direct materials activity. 3. Compute the direct labor rate and efficiency variances for each product. Prepare journal entries to record direct labor activity. 4. Compute the variances for fixed and variable overhead. Prepare journal entries to record overhead activity. All variances are closed to Cost of Goods Sold. 5. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both products. Can you compute the total direct materials and direct labor usage variances? Explain.
Crystal Pools estimates overhead will utilize 250,000 machine hours and cost $750,000. It takes 2 machine hours per unit, direct material cost of $14 per unit, and direct labor of $20 per unit. What is the cost of each unit produced?
Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $70; direct labor, $110; variable manufacturing overhead, $45; total fixed manufacturing overhead, $800,000. What is the cost per unit under both the variable and absorption methods?
Tri-bikes manufactures two different levels of bicycles: the Standard and the Extreme. The total overhead of $300,000 has traditionally been allocated by direct labor hours, with 150.000 hours for the Standard and 50,000 hours for the Extreme. After analyzing and assigning costs to two cost pools, it was determined that machine hours is estimated to have $200,000 of overhead, with 4,000 hours used on the Standard product and 1,000 hours used on the Extreme product. k was also estimated that the setup cost pool would have $100000 of overhead, with 1,000 hours for the Standard and 1,500 hours for the Extreme. What is the overhead rate per product, under traditional and under ABC costing?