Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

problem: Western Company manufactures special electrical machine and parts. The company uses a standard cost system with separate standards established for every product.

The transformer department manufactures a special transformer. This department measures production volume in direct labor hours & uses a flexible budget system to plan & control department overhead costs.

Standard costs for the special transformers are determined yearly in September for the coming year. The standard value of a transformer at its DeCatur plant for the year just completed is $67 per unit, as shown here:

Direct Materials

 

 

Iron

5 Sheets X $2

$10

Copper

3 Spools X $3

$9

Direct Labor

4 hours X $7

$28

Variable Overhead

4 hours X $3

$12

Fixed Overhead

4 hours X $2

$8

Total

 

$67

Overhead rates were based on practical capacity of 4000 direct labor hours per month. Variable overhead costs are expected to vary with the number of Direct labor hours actually used. During October, the plant produced 800 transformers. This number was below expectations because a work stoppage occurred during labor contract negotiations. When the contract was settled, the department scheduled overtime in an attempt to reach expected production levels. The following costs were incurred in October.

Direct Material
Iron Purchased 5000 sheets at $2/sheet and used 3900 sheets
Copper Purchased 2200 spolls at 3.10/spool and used 2600 spools

Direct Labor
Regular Time: 2000 hours at $7.00 and 1400 hours at $7.20
Overtime 600 of the 1400 hours were subject to overtime premium. The total overtime premium of $2160 is included in variable overhead in accordance with company accounting practices

Factory Overhead
Variable $12,000
Fixed $8,800

[A] find out total direct materials price variance
[B] find out total direct usage variance
[C] Determine the variable overhead spending variance
[D] Determine the variable overhead efficiency variance
[E] Determine the budget (spending) variance for fixed overhead
[F] Determine the production volume variance
[G] Determine the most appropriate time to record any variance of actual materials prices from standard? describe?
[H] Determine the total direct labor rate (price) variance 
[I] Determine the total direct labor efficiency variance

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M921771

Have any Question? 


Related Questions in Accounting Basics

Question 1the following information relates to the

Question 1 The following information, relates to the imputation credit account (ICA) for Killorglin Park Fair Ltd ("Killorglin Park") for the year ending 31 March 2016. (i) The shareholders as at 31 March 2015 were Donna ...

Problem 1pringle corporation has been authorized to issue

Problem 1: Pringle Corporation has been authorized to issue 23,300 shares of $100 par value, 8%, noncumulative preferred stock and 1,007,600 shares of no-par common stock. The corporation assigned a $4 stated value to th ...

Discussion liabilities please respond to the followingfor

Discussion: "Liabilities" Please respond to the following: For this week's eActivity, research one publicly traded company in which you are interested using the Internet and/or Strayer databases. Locate the company Websi ...

Background of projectthe industry of medical devices

Background of Project The industry of medical devices involves a number of monitoring and reconstructive devices. Some of those devices include cardiac and diabetic care as well as hip and knee replacements. The owners o ...

Article critiqueuse the csu online library to locate and

Article Critique Use the CSU Online Library to locate and review a scholarly article found in a peer reviewed journal related to: Unions, Labor Relations, or International Human Resources Management. There is a minimum r ...

Accounting anonymousabsorption and variable costing please

Accounting Anonymous Absorption and Variable Costing: Please respond to one of the following: Option 1 Create a situation for determining performance evaluations and bonuses where absorption-costing operating income is u ...

Assignmentyour accounting firm has been asked to recommend

Assignment Your accounting firm has been asked to recommend an online accounting system for several businesses who are looking to automate their accounting. Research five online accounting systems (including QuickBooks O ...

Last year cmc recorded a deferred tax asset related to

Last year, CMC recorded a deferred tax asset related to product warranties and a deferred tax asset related to accelerated depreciation. A 75% valuation allowance was also established. However, with an upcoming internati ...

This is a group work and i entitle do the cash flow

This is a group work and I entitle do the cash flow analysis for Home Depot. Please no more than two pages. Assume that your Group has been hired to serve as my new Investment Advisory Team. I am looking for new investme ...

Decide upon an initiative you want to implement that would

Decide upon an initiative you want to implement that would increase sales over the next five years, (for example, market another product, corporate expansion, and so on). Using the sample financial statements, create pro ...

  • 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