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 spending and efficiency variance for variable manufacturing overhead costs for year.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M918719

Have any Question? 


Related Questions in Accounting Basics

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 ...

The conference on evaluating capital projects has been very

The conference on evaluating capital projects has been very helpful. You have received a significant amount of information and multiple projects to evaluate to hone your skills. To adequately teach Grammy and the board y ...

Problem 1the following information relates to billy bobs

Problem 1 "The following information relates to Billy Bob's Donuts defined benefit pension plan during the current reporting year (All the amounts are in millions): Plan Assets at the beginning of the year $350 Expected ...

Discussionpart 1 please respond the following question no

Discussion Part 1 please respond the following question no less then 350 words (original work, no plagiarism, 1 reference) "earnings-based valuation" please respond to the following: • Create an argument supporting that ...

Discussion 1-iasb and fasb mergersir david tweedie chairman

Discussion 1-IASB and FASB Merger? Sir David Tweedie, chairman of the International Accounting Standards Board (IASB), is quoted as saying that the IASB and the Financial Accounting Standards Board (FASB) will eventually ...

Assignment comparing capital expenditurescomparing capital

Assignment: Comparing Capital Expenditures Comparing Capital Expenditures Select a company and access the last three years' annual reports. Next, select a company that is a direct competitor and download the previous thr ...

Discussionpart 1 please respond the following question no

Discussion Part 1 please respond the following question no less then 350 words (original work, no plagiarism, 1 reference "S Corporation" Please respond to the following: • Per the text and IRC, losses and deductions of ...

Review the short list of account balances from data below

Review the short list of account balances from data below. From the account balances, generate an income statement, a statement of owner's equity and a balance sheet for a hypothetical small business. The adjusted trial ...

Accounting questionwhat are the advantages to the

Accounting Question: What are the advantages to the shareholders in a target entity that is acquired via taxable stock acquisition vs. a taxable acquisition of net assets? What are the advantages to the acquiring entity? ...

Assignment- review of accounting ethics papermany

Assignment- Review of Accounting Ethics Paper Many organizations have been in the news over the past few years due to accounting ethical breaches that have affected their customers, employees, or the general public. Sear ...

  • 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