User Account

All Pages

Find what is the standard variable overhead cost allowed

Assignment Help Managerial Accounting
Reference no: EM132529716

Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock items carried by its dot.com clients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, which pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours.

  • In the most recent month, 130,000 items were shipped to customers using 4,700 direct labor-hours. The company incurred a total of $13,630 in variable overhead costs.
  • According to the company's standards, 0.03 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $2.95 per direct labor-hour.

Required:

Question 1. What is the standard labor-hours allowed (SH) to ship 130,000 items to customers?

Question 2. What is the standard variable overhead cost allowed (SH × SR) to ship 130,000 items to customers?

Question 3. What is the variable overhead spending variance?

Question 4. What is the variable overhead rate variance and the variable overhead efficiency variance?

Reference no: EM132529716

Questions Cloud

What amount of loss on factoring Quarantino Company report : The customer paid the note to the bank on maturity date. What amount of loss on factoring should Quarantino Company report for 2020
Make table showing the total annual cost of ordering : Make table showing the total annual cost of ordering and storing XL-20 for each of the following order quantities: 450, 900, and 1,800 canisters.
Determine break down the spending variance : Determine Break down the spending variance above into a variable overhead rate variance and a variable overhead efficiency variance
What is the cash in bank balance per ledger : Cash in bank per bank statement at current month - end 1,500,000. What is the cash in bank balance per ledger. What is the adjusted cash in bank
Find what is the standard variable overhead cost allowed : What is the standard labor-hours allowed (SH) to ship? What is the standard variable overhead cost allowed (SH × SR) to ship 130,000 items to customers?
What is the total annual cost of ordering and storing : Use the equation approach to compute the new EOQ. What is the total annual cost of ordering and storing XL-20 at the economic order quantity?
What amount can Lenny claim as a foreign tax credit : In 2018, Lenny Traveler had adjusted gross income of $32,000 from investments in the U.S., What amount can Lenny claim as a foreign tax credit
Discuss any ethical concerns with the type of transaction : The company that sells the equipment and insists the equipment is needed. Discuss any ethical concerns you see with this type of transaction.
What is the labor spending variance : According to the standard cost card for this meal, it should require 0.40 direct labor-hours at a cost of $12.00 per hour. What is the labor spending variance

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Expects to maintain the same inventories

Wolsey Industries Inc. expects to maintain the same inventories at the end of 2014 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the vari..

  Flexible budgets-design and budget elements

Design and Budget Elements of Proposal Paper Select a proposal type and make a 1050- to 1750-word paper selecting one of following elements in budget proposals:

  Calculate the cost of direct materials used in production

If there is no beginning work in process inventory and ending work in process inventory is $50,000, what is the cost of goods manufactured?

  Compute the cost per equivalent unit

Compute the equivalent units of production using the weighted-average method. Compute the cost per equivalent unit using the weighted-average method.

  Figure out the cost of goods sold for the months of october

Figure out the inventory, purchase, and cost of goods sold for the months of October. University Logos buy logo imprinted merchandise and then sells

  Measuring innovation

This Project is about researching and preparing a four-part presentation in order to succinctly describe and evaluate four contemporary managerial accounting theories or models that are commonly applied in business settings.

  Indicate which firm is likely to be dollar general

Examine the following common-size income statements and indicate which firm is likely to be Dollar General and which is likely to be Macy's. Explain your reasoning.

  Relevant sales and operational variances from the data

You are the management accountant of MB plc, a company producing electrical goods. The MD has asked you to analyse the performance of one of its products the 'Toastie', which has performed poorly in the financial year just ended.The budgeted infor..

  Determine the divisional income from operations

Determine the divisional income from operations for the Retail Division and the Commercial Division. Do not round interim calculations.

  Pros and cons of awarding managerial bonuses

Discuss the pros and cons of awarding managerial bonuses based on budgeted cost targets. Specifically, what are some ways that the manager could ensure him or herself a bonus but skew your financial data?

  Determine the ativity cost driver rate for pakaging costs

What is ativity-based management and how an it be used to improve the profitability of Company?

  Explain the meaning of the phrase client confidentiality

Explain the meaning of the phrase "client confidentiality" in the context of a CPA's ethical responsibilities. Did Debbie have a responsibility to report

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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