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Phantasy [73]
2 years ago
11

Peterson Company estimates that overhead costs for the next year will be $3,400,000 for indirect labor and $850,000 for factory

utilities. The company uses machine hours as its overhead allocation base. If 85,000 machine hours are planned for this next year, what is the company's plantwide overhead rate? (Round your answer to two decimal places.)
Business
1 answer:
GREYUIT [131]2 years ago
3 0

Answer:

Predetermined manufacturing overhead rate= $50 per machine-hour

Explanation:

Giving the following information:

Estimated overhead costs= $3,400,000 for indirect labor

Estimated overhead costs= $850,000 for factory utilities.

85,000 machine hours are planned for this next year

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (3,400,000 + 850,000) / 85,000

Predetermined manufacturing overhead rate= $50 per machine-hour

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Answer:

Material Price Variance= $ 2850 Unfavorable

Material Quantity Variance=$ 900 unfav

Total direct materials variance $ 3750

Direct Labor Rate  variance= $ 3325 fav

Direct labor time variance= 3200 Unfavorable

Total Direct Labor Cost Variance= 125 fav

Explanation:

Standard wage per hour $20

Standard labor time per faucet 30 min  = 0.5 *5000= 2500 Hrs

Standard number of lbs. of brass 2.5lbs

Standard price per lb. of brass $1.80

Actual price per lb. of brass $1.95

Actual lbs of brass used during the week 13,000 lbs

Number of faucets produced during the week 5,000

Actual wage per hr. $18.75

Actual hrs for the week (70 employees x 38 hours) 2,660

 

Material Price Variance= (Actual Price * Actual Quantity)- (Standard Price * Actual Quantity)

Material Price Variance= ($ 1.95 *13000)-($1.8 *5000*2.5)= ($ 1.95 *13000)-($1.8 *12500)= $ 25350 - $  22500= $ 2850

Material Price Variance= $ 2850 Unfavorable

Material Quantity Variance= (Standard Price * Actual Quantity)-(Standard Price * Standard Quantity)

Material Quantity Variance=($1.8 *13000)-($1.8 *12500)= 23400- 22500

Material Quantity Variance=$ 900 Unfav

Total direct materials variance =Material Price Variance + Material Quantity Variance= 2850 + 900 = $ 3750 Unfav

Direct Labor Rate  variance= (actual hours* actual rate)- (actual hours * standard rate)

Direct Labor Rate  variance=( 2660 *18.75)  - (2660*20)= 49875- 53200

Direct Labor Rate  variance= $ 3325 fav

Direct labor time variance= (actual hours* standard rate)- (standard hours * standard rate)

Direct labor time variance= (2660 *20) -(0.5 * 5000*20)

Direct labor time variance= 53200-50,000

Direct labor time variance= 3200 Unfavorable

Total Direct Labor Cost Variance= Direct Labor Rate  variance + Direct labor time variance= 3325 fav- 3200 unfav= 125 fav

4 0
3 years ago
gen-tech sells merchandise on account for $4,000 to acorn company with credit terms of 2/10, n/30. within the discount period, a
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Within the discount period, acorn company returns $500 of damaged merchandise and a check for $3,450 to settle the account

Using this formula

Check amount=(Merchandise sold- Merchandise return)-  [(Merchandise sold- Merchandise return)× Discount]

Where:

Merchandise sold=$4,000

Merchandise return=$500

Discount=2%

Let plug in the formula

Check amount=($4,000-$500)-[($4,000-$500)×2%]

Check amount=$3,500-($3,500×2%)

Check amount=$3,500-$70

Check amount=$3,430

Inconclusion within the discount period, acorn company returns $500 of damaged merchandise and a check for $3,450 to settle the account.

Learn more here:

brainly.com/question/19865607

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Low budget sports and entertainment marketers who want to use 21st century advertising wisely can benefit from ?
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Answer:

the answer is your 2nd choice.

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Answer:

(b) Common objectives

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