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

Accounting assignmentaccounting is the study of how

Accounting Assignment Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities in addition to preparing financial statements and recording busi ...

Data for the year-end adjustments for al geromes courier

Data for the year-end adjustments for Al Gerome's Courier Services are as follows: Insurance expired during the year ($950.00) Depreciation of Equipment for the year ($9,860.00) Salaries accrued at December 31 ($5100.00) ...

Account assignmentlets use this discussion to study bonds

Account Assignment Let's use this discussion to study bonds together. Assume the following information for a bond issue: ABC Company issues the bonds at a face value of $10,000.000 with a contractual (stated) interest ra ...

Part 1royal oak taxation advisory service has the following

PART 1 Royal Oak Taxation Advisory Service has the following transactions for the month of December 2016 : Dec. 1 Commenced business by depositing $50 000 in a bank account in the name of the business 2 Bought a vehicle ...

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 ...

The balance sheet provides a snapshot of the financial

The Balance Sheet provides a snapshot of the financial condition of a company at the end of an accounting period. It shows the assets, liabilities, and owner's equity in the business. 1. Identify each of the following as ...

Assignmentuncollectible accountsusing your text and at

Assignment Uncollectible Accounts Using your text and at least one scholarly source, prepare a two to three page paper (excluding title and reference page), in APA format, on the following: • Explain the difference betwe ...

Accounting assignmentflorida sunshine real estate

Accounting Assignment Florida Sunshine Real Estate Properties, Inc. is a real estate firm located in southwest Florida. The company, which advertises itself as "expert in the real estate market", monitors condominium sal ...

Problem -the stay healthy medical clinics balance sheet on

Problem - The Stay Healthy Medical Clinic's Balance sheet on December 31, 2014 showed an owner's equity of $1,280,000. The December 31, 2015 balance sheet showed an owner's equity of $1,520,000. During the year, the owne ...

Accounting assignmentthree personal trainers at an upscale

Accounting Assignment Three personal trainers at an upscale health spa / resort in Sedona, Arizona, want to start a health club that specializes in health plans for people in the 50+ age range. The trainers Donna Rinaldi ...

  • 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