Solution-Compute the variable overhead rate

Compute the variable overhead rate

Assignment Help Cost Accounting

Reference no: EM132857550

Question 1 - Hangin Inc. is engaged in manufacturing and selling portable electric fans. The company uses standards to control its costs. To finish one unit, 10 minutes is required. The budgeted variable manufacturing overhead rate is P12 per direct labor-hour. In the month of May, 1,920 hours of direct labor were actually used in producing 9,600 units. The amount of variable manufacturing overhead incurred is P21,120.

Required -

a. Compute the variable overhead rate and efficiency variances for the month.

b. What is the total variable overhead variance?

Question 2 - The budgeted company's variable manufacturing overhead is P20 per direct labor hour while its fixed manufacturing overhead budget amounts to P200,000 a month. The total budgeted direct labor hours is 15,000 needed to produce 75,000 units. For the month of May the actual operating results are:

Units produced 74,500

Actual direct labor hours 15,200

Actual manufacturing overhead (35% fixed) P620,000

Required -

a. Compute the predetermined overhead rate and separate fixed OH rate from variable overhead rate.

b. Determine the standard hours allowed for the actual production.

c. Compute the amount of overhead that will be applied to the actual output.

Reference no: EM132857550

Questions Cloud

Examine issues for a knowledge-friendly culture : Identify any sub-cultures, and examine issues for a knowledge-friendly culture - explain what challenges might Tesla face in implementing your recommendations

Develop appropriate null and alternative hypotheses : You suspect that two pesticides (Bug-B-Gone and Fly-Zap) used on corn crops are toxic to humans, but only when used together (may not harm humans when used sing

Why incidents of partner abuse against males : Explain why incidents of partner abuse against males and gay and lesbian partner abuse are often under-reported? Provide examples of how social services

Demonstrate in international environment : What soft skills do global managers need to demonstrate in an international environment?

Compute the variable overhead rate : The company uses standards to control its costs. To finish one unit, 10 minutes is required. Compute the variable overhead rate

Analyzing strategic management cases : How analyzing strategic management cases can help develop the ability to differentiate, speculate, and integrate when evaluating complex business problems.

Find the regression equation for the following data set : A data set whose original x values ranged from 41 through 78 was used to generate a regression equation of y=5.3x - 21.9. Use the regression equation

What is the level of significance : Bill Alther is a zoologist who studies Anna's hummingbird (Calypte anna3.7 2.9 3.8 4.2 4.8 3.1). (Reference: Hummingbirds, K. Long, W. Alther.)

Determine operating income : Determine operating income for 20X0, assuming the firm uses the variable-costing approach to product costing

User Account

All Pages

Compute the variable overhead rate

Reference no: EM132857550

Reference no: EM132857550

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT