Poland is a major producer of classic Polish sausage
Chilczuk, S.A., of Gdansk, Poland, is a major producer of classic Polish sausage. The company uses a standard cost system to help control costs. Manufacturing overhead is applied to production on the basis of standard direct labor-hours. According to the companyAc€?cs flexible budget, the following manufacturing overhead costs should be incurred at an activity level of 15,000 labor-hours (the denominator activity level):
 Variable manufacturing overhead cost $ 30,000
 Fixed manufacturing overhead cost 60,000
Â
 Total manufacturing overhead cost $ 90,000
Â
During the most recent year, the following operating results were recorded:
 Activity:
  Actual labor-hours worked 12,000
  Standard labor-hours allowed for output 12,300
 Cost:
  Actual variable manufacturing overhead cost incurred $ 34,800
  Actual fixed manufacturing overhead cost incurred $ 48,750
At the end of the year, the companyAc€?cs Manufacturing Overhead account contained the following
data:
Manufacturing Overhead
Â
 Actual 83,550   Applied 73,800
Â
 9,750  Â
Â
Â
Management would like to determine the cause of the $9,750 underapplied overhead.
1. Compute the predetermined overhead rate. Break the rate down into variable and fixed cost elements.(Round your answers to 2 decimal places.)
Total Rate:__________per hour
Variable element:__________per hour
Fixed element:___________per hour
2. Show how the $73,800 Applied figure in the Manufacturing Overhead account was computed. (Round your per hour value to 2 decimal places.)
_____________Standard hours x ___________per hour___________
3. Analyze the $9,750 underapplied overhead figure in terms of the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Variable overhead:
Rate Variance
Efficiency Variance
Fixed Overhead:
Budget Variance
Volume Variance
Â
Answers
Status NEW
Posted 04 May 2017 03:05 PM
My Price 12.00
-----------
Attachments
file 1493911737-938701_1_636294053301906539_Answer.xlsx preview (235 words )
Co-----------mpu-----------te -----------the----------- pr-----------ede-----------ter-----------min-----------ed -----------ove-----------rhe-----------ad -----------rat-----------e. -----------Bre-----------ak -----------the----------- ra-----------te -----------dow-----------n i-----------nto----------- va-----------ria-----------ble----------- an-----------d f-----------ixe-----------d c-----------ost----------- el-----------eme-----------nts-----------. -----------(Ro-----------und----------- yo-----------ur -----------ans-----------wer-----------s t-----------o 2----------- de-----------cim-----------al -----------pla-----------ces-----------.)p-----------red-----------ete-----------rmi-----------ned----------- ov-----------erh-----------ead----------- ra-----------te -----------= 9-----------000-----------0/1-----------500-----------0pr-----------ede-----------ter-----------min-----------ed -----------ove-----------rhe-----------ad -----------rat-----------e =----------- 6V-----------ari-----------abl-----------e E-----------lem-----------ent----------- = -----------6*3-----------/9V-----------ari-----------abl-----------e E-----------lem-----------ent----------- = -----------2Fi-----------xed----------- el-----------eme-----------nt -----------= 6-----------*6/-----------9Fi-----------xed----------- el-----------eme-----------nt -----------= 4-----------Tot-----------al -----------Rat-----------e:$----------- 6 -----------per----------- ho-----------urV-----------ari-----------abl-----------e e-----------lem-----------ent-----------: $----------- 2 -----------per----------- ho-----------urF-----------ixe-----------d e-----------lem-----------ent-----------:$ -----------4 p-----------er -----------hou-----------rSh-----------ow -----------how----------- th-----------e $-----------73,-----------800----------- Ap-----------pli-----------ed -----------fig-----------ure----------- in----------- th-----------e M-----------anu-----------fac-----------tur-----------ing-----------
Not Rated(0)