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Category > Management Posted 04 Mar 2018 My Price 9.00

Norris Company

Norris Company produces telephones. To help control costs, Norris employs a stan- dard costing system and uses a flexible budget to predict overhead costs at various levels of activity. For the most recent year, Norris used a standard overhead rate of

 

$18 per direct labor hour. The rate was computed using practical activity. Budgeted

 

 

 

 

 

 

 

overhead costs are $792,000 for 36,000 direct labor hours and $1,080,000 for 60,000 direct labor hours. During the past year, Norris generated the following data:

 

a. Actual production: 100,000 units

 

b. Fixed overhead volume variance: $36,000 U

 

c. Variable overhead efficiency variance: $24,000 F

 

d. Actual fixed overhead costs: $380,000

 

e. Actual variable overhead costs: $620,000

 

 

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.

 

5. Assuming the standard labor rate is $13 per hour, compute the labor efficiency variance.

 

 

 

 


Answers

Maurice Tutor
(5)
Status NEW Posted 04 Mar 2018 08:03 PM My Price 9.00

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