Compute the total variable and total fixed overhead variance

Assignment Help Accounting Basics
Reference no: EM131596076

Question - Sedona Company set the following standard costs for one unit of its product for 2015.

Direct material (20 lbs. @ $2.10 per lb.)

$42.00

Direct labor (10 hrs. @ $8.80 per hr.)

88.00

Factory variable overhead (10 hrs. @ $4.00 per hr.)

40.00

Factory fixed overhead (10 hrs. @ $1.80 per hr.)

18.00

Standard cost

$188.00

The $5.80 ($4.00 + $1.80) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 70.000 units per month The following monthly flexible budget information is also available.

Flexible Budget

Operating Levels (% of capacity)

65%

70%

75%

Budgeted output (units)

45,500

49,000

52,500

Budgeted labor (standard hours)

455,000

490,000

525,000

Budgeted overhead (dollars)




Variable overhead

$ 1,820,000

$1,960,000

$2,100,000

Fixed overhead

882,000

882,000

882,000

Total overhead

$ 2,702,000

$2,842,000

$2,982,000

During the current month, the company operated at 65% of capacity, employees worked 435,000 hours, and the following actual overhead costs were incurred.

Variable overhead costs

$1,765,000

Fixed overhead costs

943,000

Total overhead costs

$2,708,000

Required -

(1) Compute the predetermined overhead application rate per hour for variable overhead, fixed overhead, and total overhead at 70% of capacity.

(2) Compute the total variable and total fixed overhead variances.

Reference no: EM131596076

Questions Cloud

Discuss the types of defendants : Justify the constraints placed on judges by guidelines-based and mandatory sentencing schemes, as describe in Chapter 9 of the course required textbook.
How much can you withdraw each month from your account : How much can you withdraw each month from your account in real terms assuming a 25-year withdraw period?
Determine the single most significant weakness : Analyze the current state of the U.S. health care system and determine the single most significant weakness.
Determine benefit for the victim : Choose two (2) disparities mentioned in Chapter 10 of the text that you believe commonly affect the outcome of most court trials during the sentencing phase.
Compute the total variable and total fixed overhead variance : Sedona Company set the following standard costs for one unit of its product for 2015. Compute the total variable and total fixed overhead variances
Compose a written outline of the articles main points : Select three related main ideas from the journal article (excluding the abstract). Compose a written outline of the article's main points.
Compare method that can be used to prioritize training needs : Identify and compare two methods that can be used to prioritize training needs. Which method do you feel is more reliable? Why?
A policy for the occupational safety and health act : The Key Assignment for this course will involve creating polices for the various laws that are covered in the employee handbook.
Does your paragraph end with a lead-out sentence : Does your paragraph begin with a clearly stated main idea? Does your paragraph include evidence supporting the main idea?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd