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Category > Accounting Posted 19 Aug 2017 My Price 11.00

Lynwood Company

Problem 11-57         Understanding Relationships, Incomplete Data, Overhead Analysis Lynwood Company produces surge protectors. To help  control  costs,  Lynwood  employs  a standard costing system and uses a flexible budget to predict overhead costs at various levels of

activity. For the most recent year, Lynwood used a standard overhead rate of $18 per direct

labor  hour.  The  rate  was  computed  using  practical  activity.  Budgeted  overhead  costs    are

$396,000 for 18,000 direct labor hours and $540,000 for 30,000 direct labor hours. During the past year, Lynwood generated the following data: (a) Actual production: 100,000 units; (b) Fixed overhead volume variance: $20,000 U; (c) Variable overhead efficiency variance: $18,000 F; (d) Actual fixed overhead costs: $200,000; and (e) Actual variable overhead costs: $310,000.

Required:

1.       Calculate the fixed overhead rate.

2.       Determine the fixed overhead spending variance.

3.       Determine the variable overhead spending variance.

4.       Determine the standard hours allowed per unit of product.

Answers

Maurice Tutor
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Status NEW Posted 19 Aug 2017 05:08 PM My Price 11.00

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