Wymont company produces a single product that requires a

Reference no: EM13376337

Wymont Company produces a single product that requires a large amount of labor time. Overhead cost is applied on the basis of standard direct labor-hours. Variable manufacturing overhead should be $2.00 per standard direct labor-hour and fixed manufacturing overhead should be $180,000 per year.

The company's product requires 4 feet of direct material that has a standard cost of $3.00 per foot. The product requires 1.5 hours of direct labor time. The standard labor rate is $12.00 per hour.

During the year, the company had planned to operate at a denominator activity level of 30,000 direct labor-hours and to produce 20,000 units of product. Actual activity and costs for the year were as follows:


Number of units produced	22,000
Actual direct labor-hours worked	35,000
Actual variable manufacturing overhead cost incurred	$ 63,000
Actual fixed manufacturing overhead cost incurred	$ 181,000

Required:
1. Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed components. (Omit the "$; sign in your response.)

Predetermined overhead rate	$ per DLH
Variable rate	$ per DLH
Fixed rate	$ per DLH

2. Compute the standard cost card for the company's product. (Round your answers to 2 decimal places. Omit the "$; sign in your response.)

Direct materials, feet at $ per foot $
Direct labor, DLHs at $ per DLH
Variable overhead, DLHs at $ per DLH
Fixed overhead, DLHs at $ per DLH
Standard cost per unit $

3a. Compute the standard direct labor-hours allowed for the year's production.

Standard direct labor hours

3b.

Complete the following Manufacturing Overhead T-account for the year: (Omit the "$; sign in your response):

Manufacturing Overhead


(Click to select)Actual costsApplied costsStandard costs			(Click to select)Actual costsStandard costsApplied costs

			(Click to select)Underapplied overheadOverapplied overhead

4.
Determine the reason for the underapplied or overapplied overhead from (3) above by computing the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$; sign in your response.)


Variable overhead rate variance	$	(Click to select)FUNone
Variable overhead efficiency variance	$	(Click to select)FUNone
Fixed overhead budget variance	$	(Click to select)FUNone
Fixed overhead volume variance	$	(Click to select)FUNone

Reference no: EM13376337

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