Maurice Tutor

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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 25 Sep 2017 My Price 4.00

North Diamond Inc.

(Variances and cost control) North Diamond Inc. applies overhead on a direct labor hour basis. Each unit of product requires 12 machine hours. Overhead is applied on a 30 percent variable and 70 percent fixed basis; the overhead application rate is $40 per hour. Standards are based on a normal monthly capacity of 24,000 machine hours. During September 2001, North Diamond produced 2,300 units of product and incurred 25,000 machine hours. Actual overhead cost for the month was $1,00,000.

a. What were standard hours allowed for September?

b. What is total annual budgeted fixed overhead cost?

c. What is the controllable overhead variance?

d. What is the noncontrollable overhead variance?

Answers

Maurice Tutor
(5)
Status NEW Posted 25 Sep 2017 10:09 PM My Price 4.00

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