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Exercise 10A-5 (Algo) Using Fixed Overhead Variances [LO10-4] The standard cost card for the single product manufactured by Cutter, Incorporated, is given below: Inputs Direct materials Direct labor Variable overhead Fixed overhead Total standard cost per unit (1) Standard Quantity or Hours 3.6 yards 0.7 hours 0.7 hours 0.7 hours (2) Standard Price or Rate $ 3.00 per yard $ 16.00 per hour $2.00 per hour $5.00 per hour Standard Cost (1) x (2) $ 10.80 11.20 1.40 3.50 $ 26.90 Manufacturing overhead is applied to production based on standard direct labor-hours. During the year, the company worked 8,460 hours and manufactured 11,800 units. Selected data relating to the company's fixed manufacturing overhead cost for the year are shown below: Actual Fixed Overhead = $40,000 Budgeted Fixed Overhead = ? Fixed Overhead Applied to Work in Process = ? hours × $? per hour = $? Budget variance = $? Volume variance = $3,300 F Required: 1. What were the standard hours allowed for the year's production? 2. What was the amount of budgeted fixed overhead cost? 3. What was the fixed overhead budget variance? Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.

Exercise 10A-5 (Algo) Using Fixed Overhead Variances [LO10-4] The standard cost card for the single product manufactured by Cutter, Incorporated, is given below: Inputs Direct materials Direct labor Variable overhead Fixed overhead Total standard cost per unit (1) Standard Quantity or Hours 3.6 yards 0.7 hours 0.7 hours 0.7 hours (2) Standard Price or Rate $ 3.00 per yard $ 16.00 per hour $2.00 per hour $5.00 per hour Standard Cost (1) x (2) $ 10.80 11.20 1.40 3.50 $ 26.90 Manufacturing overhead is applied to production based on standard direct labor-hours. During the year, the company worked 8,460 hours and manufactured 11,800 units. Selected data relating to the company's fixed manufacturing overhead cost for the year are shown below: Actual Fixed Overhead = $40,000 Budgeted Fixed Overhead = ? Fixed Overhead Applied to Work in Process = ? hours × $? per hour = $? Budget variance = $? Volume variance = $3,300 F Required: 1. What were the standard hours allowed for the year's production? 2. What was the amount of budgeted fixed overhead cost? 3. What was the fixed overhead budget variance? Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 3PA: Direct materials, direct labor, and factory overhead cost variance analysis Mackinaw Inc. processes...
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Exercise 10A-5 (Algo) Using Fixed Overhead Variances [LO10-4] The standard cost card for the single product manufactured by Cutter, Incorporated, is given below: Inputs Direct materials Direct labor Variable overhead Fixed overhead Total standard cost per unit (1) Standard Quantity or Hours 3.6 yards 0.7 hours 0.7 hours 0.7 hours (2) Standard Price or Rate $ 3.00 per yard $ 16.00 per hour $2.00 per hour $5.00 per hour Standard Cost (1) x (2) $ 10.80 11.20 1.40 3.50 $ 26.90 Manufacturing overhead is applied to production based on standard direct labor-hours. During the year, the company worked 8,460 hours and manufactured 11,800 units. Selected data relating to the company's fixed manufacturing overhead cost for the year are shown below: Actual Fixed Overhead = $40,000 Budgeted Fixed Overhead = ? Fixed Overhead Applied to Work in Process = ? hours × $? per hour = $? Budget variance = $? Volume variance = $3,300 F Required: 1. What were the standard hours allowed for the year's production? 2. What was the amount of budgeted fixed overhead cost? 3. What was the fixed overhead budget variance? Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.
Transcribed Image Text:Exercise 10A-5 (Algo) Using Fixed Overhead Variances [LO10-4] The standard cost card for the single product manufactured by Cutter, Incorporated, is given below: Inputs Direct materials Direct labor Variable overhead Fixed overhead Total standard cost per unit (1) Standard Quantity or Hours 3.6 yards 0.7 hours 0.7 hours 0.7 hours (2) Standard Price or Rate $ 3.00 per yard $ 16.00 per hour $2.00 per hour $5.00 per hour Standard Cost (1) x (2) $ 10.80 11.20 1.40 3.50 $ 26.90 Manufacturing overhead is applied to production based on standard direct labor-hours. During the year, the company worked 8,460 hours and manufactured 11,800 units. Selected data relating to the company's fixed manufacturing overhead cost for the year are shown below: Actual Fixed Overhead = $40,000 Budgeted Fixed Overhead = ? Fixed Overhead Applied to Work in Process = ? hours × $? per hour = $? Budget variance = $? Volume variance = $3,300 F Required: 1. What were the standard hours allowed for the year's production? 2. What was the amount of budgeted fixed overhead cost? 3. What was the fixed overhead budget variance? Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.
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