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topjm [15]
3 years ago
14

The Berwin Company established a master budget volume of 35,000 units for April. Actual overhead costs incurred amounted to $98,

500. Actual production for the month was 34,000 units. The standard variable overhead rate was $1.75 per direct labor hour. The standard fixed overhead rate was $1.50 per direct labor hour. One direct labor hour is the standard quantity per finished unit. Assume the allocation base for fixed overhead costs is the number of direct labor hours. SR1a. A. Compute the total manufacturing overhead cost variance.
Business
1 answer:
Gekata [30.6K]3 years ago
5 0

Answer:

$12,000 Favorable

Explanation:

Given that,

Actual overhead costs incurred = $98,500

Actual production for the month = 34,000 units

Standard variable overhead rate = $1.75 per direct labor hour

Standard fixed overhead rate = $1.50 per direct labor hour

One direct labor hour is the standard quantity per finished unit.

Firstly, we need to find out the overhead applied by multiplying the actual production units with the standard overhead rate and standard quantity per finished unit.

Total standard overhead rate:

= Standard variable overhead rate + Standard fixed overhead rate

= $1.75 + $1.50

= $3.25

Overhead applied:

= Actual production × standard quantity per finished unit × Total standard overhead rate

= 34,000 × 1 × $3.25

= $110,500

Therefore, the total manufacturing overhead cost variance is determined by deducting the Actual overhead costs from the overhead applied.

It is calculated as follows:

= Overhead applied - Actual overhead costs incurred

= $110,500 - $98,500

= $12,000 Favorable

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Ede4ka [16]

Solution :

We know that the exchange takes place when the FMV receive is equal to the FMV given up.

Where the FMV = fair market value

The commercial substance means the future cash flows exchange.

The non monetary exchange refers to the cash which is less than 25% of the fair value exchange.

The journal entries for the Santana Corp. when the exchange lack the commercial substance are reported as :

Transaction                                           Debit ($)                 Credit ($)

Asset(new)                                           11,000

Accumulated depreciation(old)          9,000

Asset (old)                                                                       28,000

Cash                                                                                 2000

The journal entries for Delaware Corp. when the exchange lacks the commercial substance.

Transaction                                           Debit ($)                 Credit ($)

Asset(new)                                            16,000  

Accumulated depreciation (old)          10,000

Loss                                                                                      2500

Assets (old)                                                                           28,000                                  

7 0
2 years ago
PLEASE HELP QUICKLY: (FIRST ANSWER GETS BRAINLIEST)
Aliun [14]

To create market stability.

6 0
3 years ago
Which is the biggest company in Germany?
Fynjy0 [20]
Royal Dutch Shell
Shell
7 0
3 years ago
Costs that change directly with the level of production are referred to as ________ costs
Elodia [21]
The answer to this question is Variable cost.
As the level of production increase , the total variable cost is increased and vice versa.
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6 0
3 years ago
Boone Co.'s sales, based on past experience, are 20% cash and 80% credit. Credit sales are typically collected as follows: 40% i
Tamiku [17]

Answer:

$135,260

Explanation:

Remember to follow the cash collection history to determine the budgeted cash receipts for January.

Budgeted cash receipts for January

January Cash Sales $113,000 x 20%                     $22,600

January Credit Sales $113,000 x 80% x 40 %        $36,160

December Credit Sales ($73,500 - $27,000)       $46,500

November Credit Sales                                          $27,000

Total                                                                       $135,260

Therefore,

Boone Co.'s budgeted cash receipts for January is $135,260

7 0
2 years ago
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