Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) The Moore Company produces and sells single product. Company standard cost card for unit of product comprise the following for direct materials and direct labor:

Direct materials:4 meters at $4.00 per meter and $16.00

Direct labor:1.5 hours at $10.00 per hour and $15.00

Company controls manufacturing overhead costs with overhead flexible budget. Flexible budget for producing overhead costs for 2006 at three levels of activity (measured in direct labor hours) was given below:

 
ACTIVITY LEVELS
Direct labor hours
17,000
22,500
27,000
Total variable manufacturing overhead cost
$51,000
$67,500
$81,000
Total fixed manufacturing overhead cost
157,500
157,500
157,500
 Total
$208,500
$225,000
$238,500

For product costing purposes, company applies manufacturing overhead costs to product on the basis of direct labor hours and denominator activity level of 22,500 hours (equivalent of 15,000 units of the product).

Actual operating data and cost information for the year were given below:

i) Output: 18,000 units of the product

ii) Purchased 80,000 meters of direct materials at total cost of $336,000. 70,000 meters of this material was utilized to produce 18,000 units.

iii) Incurred total direct labor cost of $277,875 for 29,250 direct labor hours worked.

iv) Incurred fixed manufacturing overhead costs of $156,000 and variable manufacturing overhead costs of $102,375.

problem:

Note: In the following computations which involve variances, point out whether a variance is favorable (F) or unfavorable (U).

Compute budget (spending) variance and volume variance for fixed manufacturing overhead costs for year.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M918723

Have any Question? 


Related Questions in Accounting Basics

Assignmenta manufacturing company is thinking of launching

Assignment A manufacturing company is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct costs including labor and m ...

You are starting your own internet business you decide to

You are starting your own Internet business. You decide to form a company that will sell cookbooks online. Justcookbooks.com is scheduled to launch 6 months from today. You estimate that the annual cost of this business ...

Accounting discussiona local movie theater owner explains

Accounting Discussion A local movie theater owner explains to you that ticket sales on weekends and evenings are strong, but attendance during the weekdays, Monday through Thursday, is poor. The owner proposes to offer a ...

Assignmentusing a 5 discount rate calculate the net present

Assignment Using a 5% discount rate, calculate the Net Present Value, Payback, Profitability Index, and IRR for each of the investment projects below (note, the inflows are for each year). Based on your calculations rank ...

Please answer the following question analysis needed with

Please answer the following question. Analysis needed with explanation. Use in-text citation and reference page if necessary in APA format. Answers should be must be plagiarism free. Zaldor Corporation sells a specialize ...

Accounting questions1 if cash is 2345 in 20x2 and 3671 in

Accounting Questions 1. If Cash is $2,345 in 20X2 and $3,671 in 20X1, what is the percentage of increase or (decrease) from 20X1 to 20X2? A. 56.55%******* B. (56.55%) C. 36.12% D. (36.12%) 2. Gross profit by department a ...

Mnc paper and presentationgoogle company paper and

MNC Paper and Presentation: GOOGLE COMPANY Paper and Presentation will consist of research to write a paper on an annual SEC 10-K report filed by a public multinational corporation with the U.S. Securities and Exchange C ...

Conduct a cost analysis of gas versus electric vehicle find

Conduct a cost analysis of gas versus electric vehicle. Find the break-even point assuming gasoline is $3.00/gallon with an average of 22 miles per gallon that costs $25,000. Compared to an electric vehicle for $35,000 t ...

Develop a powerpoint presentation that answers the

Develop a PowerPoint presentation that answers the following questions: Prepare a financial analysis of Warehouse Distribution, Inc.(I will upload the income statements for Warehouse Distribution), comparing the firm's f ...

Assignmentduring your examination of the accounts

Assignment During your examination of the accounts receivable of Hope Ranch, a new client, you notice that one account is much larger than the rest, and you therefore decide to examine the evidence supporting this custom ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro