Master manufacturing overhead budget

Assignment Help Financial Accounting

Reference no: EM135459

Rondello Corporation manufactures a single product. The standard cost per unit of product is shown below.

Direct materials-1 pound plastic at $9.10 per pound $ 9.10

Direct labor-1.5 hours at $15.60 per hour 23.40

Variable manufacturing overhead 14.63

Fixed manufacturing overhead 4.88

Total standard cost per unit $52.01

The pre- evaluated manufacturing overhead rate is $13 per direct labor hour ($19.50 ÷ 1.5). It was computed from a master manufacturing overhead budget based on normal production of 9,750 direct labor hours (6,500 units) for the month. The master budget showed net variable costs of $73,125 ($9.75 per hour) and net fixed overhead costs of $24,375 ($3.25 per hour). Real costs for October in producing 4,940 units were as given.

Direct materials (5,150 pounds) $48,874

Direct labor (7,000 hours) 113,750

Variable overhead 73,021

Fixed overhead 25,584

Total manufacturing costs $261,229

The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, thus, can be ignored.

Reference no: EM135459

Questions Cloud

About the merger and acquisition activity of the coca cola : Select one acquisition the company has undertaken during recent history and explain details of the deal. About the merger and acquisition activity of the Coca Cola

What should marc say to kelly : In this way we could combine the recording and posting process into one step and save ourselves a lot of time. What do you think?

Which of the next is not a function of a urinary system : A middle-aged man comes in since he has noticed multiple small, blood-red, raised lesions over his anterior chest and abdomen for past numerous months. They are not painful and he has not known about any bleeding or bruising. He is concerned this mig..

Describe origin of both of the original prototrophic colonie : Elucidate results of all four crosses, using clearly defined gene symbols. describe origin of both of the original prototrophic colonies.

Master manufacturing overhead budget : The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, thus, can be ignored.

Cost of goods sold calculations : Show the corrected Cost of Goods Sold calculations for both 2011 and 2012. Consider the errors had not been corrected, in your answer book, in tabular format as shown below show the dollar effect

Prepare a research memo : Bob and Mary have been married for 25 years. They are both college professors. Mary makes $65,000 yearly and Bob makes $75,000 yearly

What abnormality may underlie those conditions : How can you infer what type of volcano erupted in a given area based on type of volcanic deposits now found as layers of rock. What abnormality may underlie those conditions.

Prepare sunday starrs cash budget : Prepare Sunday Starr's cash budget for January and February in columnar format.

User Account

All Pages