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Category > Management Posted 04 Mar 2018 My Price 9.00

Lynwood Company

Problem 21-57  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. Budg- eted 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

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.

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Maurice Tutor
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Status NEW Posted 04 Mar 2018 07:03 PM My Price 9.00

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