1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vagabundo [1.1K]
2 years ago
9

Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, d

uring which it expected to use 20,000 hours for production: Variable overhead cost: Indirect factory labor $46,000 Power and light 12,000 Indirect materials 20,000 Total variable overhead cost $78,000 Fixed overhead cost: Supervisory salaries $54,500 Depreciation of plant and equipment 40,000 Insurance and property taxes 35,500 Total fixed overhead cost 130,000 Total factory overhead cost $208,000 Tannin has available 25,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 22,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead cost: Indirect factory labor $49,700 Power and light 13,000 Indirect materials 24,000 Total variable cost $86,700 Construct a factory overhead cost variance report for the Trim Department for July. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount box does not require an entry, leave it blank. Round your interim computations to the nearest cent, if required.
Business
2 answers:
amid [387]2 years ago
7 0

Answer:

factory overhead cost varaince

                                       Budget           Actual             Variance

Variable cost :

Indirect factory cost         $46,000     $49700            3,700 Unfav.

Power and light                  12,000       13,000              1,000 unfav.

Indirect materials               20,000      24,000             4,000 unfav

fixed cost:

supervisory salary              54500       54,500          

Dep of plant and equipment 40,000  40,000

Insurance and property tax   <u> 35,500</u>   <u>35,500</u>

total                                          <u>208,000</u>  <u>216,700</u>            <u>8,700 un</u>fav

Explanation:

Dmitry_Shevchenko [17]2 years ago
3 0

Answer: Total Factory Overhead cost variance unfavourable $16,500

Explanation:

Tannin product inc

Factory Overhead cost variance report -Trim Department for the month ended July

Productive capacity for the month 25,000 hrs

Actual productive capacity used for the month 22,000 hrs

Budget. Actual. Variance.

Favourable unfavourable

Variable factory overhead cost

Indirect factory labour. 50,600. 49,700. ($900)

Power and light. 13,200. 13,000. ($200)

Indirect materials. 22,000. 24,000. 2,000

--------------- -----------------

Total factory overhead cost. 85,800. 86,700

------------------ ---------------

Fixed factory overhead cost

Supervisory salaries. 54,500. 54,500

Depreciation of plant & Equipment. 40,000. 40,000

Insurance & property taxes. 35,500. 35,500

----------------- ----------------

Total Fixed factory overhead cost. 130,000. 130,000

----------------- -----------------

Total Factory Overhead cost. 215,800. 216,700

Total controllable variance. ($1,100) 2,000

Net controllable variance unfavourable. $900

Unfavourable volume variance at idle

Hours at the standard rate for fixed factory

Overhead. 15,600

--------------

Total Factory Overhead cost variance unfavourable. 16,500

-------------

Workings

To calculate budgeted variable factory overhead cost

Indirect factory labour =46,000 / 20,000 hrs × 22,000 hrs

= $50,600

Power and light= 12,000/ 20,000 hrs × 22,000 hrs

=$13,200

Indirect materials = 20,000 / 20,000 × 22,000 hrs

= $22,000

To calculate fixed factory overhead rate

= $130,000/ 25,000hrs

= $5.20 per hour

To calculate favourable variance

50,600 - 49,700= ($900)

13,200 - 13,000 =($200)

To calculate Total controllable variance

(900 + 200) = ($1,100)

To calculate Net controllable variance unfavourable

2000 - 1,100 = 900

To calculate volume variance unfavourable

(25,000hrs - 22,000hrs ) × $5.20

= $15,600

To calculate Total Factory Overhead cost variance unfavourable

900 + 15,600

= $16,500

You might be interested in
The panic of 1819:
STALIN [3.7K]
<span>The Panic of 1819 was the result of over-speculation on newly available western lands, which led to high prices on land and banks foreclosing on western lands. It caused an international financial crisis.</span>
3 0
3 years ago
________ policy is when a central bank acts to increase the money supply in an effort to stimulate the economy. Choose one:
Hoochie [10]

Answer:

This is the Epansionary Monetary Policy

Explanation:

8 0
3 years ago
Brainly Plus is awful.
Elis [28]
End them!! period !!!
6 0
2 years ago
Read 2 more answers
Retained earnings is a. The positive cash flows of a company. b. The net worth of a company. c. The owners' equity that has accu
umka2103 [35]

Answer:

The correct answer is letter "C": The owners' equity that has accumulated as a result of profitable operations.

Explanation:

Retained Earnings are the part of the company's net profits it does not pay out as dividends to shareholders. The company retains the money and reinvests it in the company, or uses it to pay off a part of its debt. To see how much profits a corporation has kept, look under the Shareholder's equity in the Balance Sheet.

3 0
3 years ago
The Oxford Fixed Income Fund invests heavily in bonds. If the fund manager thinks that interest rates are going to fall, what ch
zepelin [54]

Answer:

A. Increase investment in long-term bonds

Explanation:

According to the Expectations hypothesis which is based on the principle that long-term rate is determined purely by current and future expected short-term rates, such that he expected final value from the accumulation of progression of short-term bonds approximates the final value from investing in long-term bonds.

Hence, given that when the interest rates fall, the prices of the bonds on the market already will rise, then it can be concluded that If the fund manager thinks that interest rates are going to fall, she should Increase investment in long-term bonds

5 0
3 years ago
Other questions:
  • Max purchased an antique watch from a local store for $500. As soon as Max stepped outside the shop with the watch, a man approa
    6·1 answer
  • Depreciation on the company’s wind turbine equipment for the year is $6,200. The Prepaid Insurance account for the solar panels
    15·1 answer
  • Real gdp per person is $10000 in country A $20000 in country B and $30000 in country C. The saving rate increases by the same ra
    7·1 answer
  • Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 units,its average cost
    9·1 answer
  • What type of economy is often found in democracy A. Command Economy B. Traditional Economy C. Market Economy D. Restricted Econo
    5·2 answers
  • How is unit labor cost computed? a. By dividing the total level of output by the total cost of workers b. By dividing the total
    15·1 answer
  • Is the proposed action legal? if yes, does the proposed action maximize shareholder value? if yes, is the proposed action ethica
    10·1 answer
  • Mason Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternat
    10·1 answer
  • Define Pareto's law. Multiple choice question. It is the ranking of all items of an inventory according to a specific criterion
    9·1 answer
  • If there is allocative efficiency in a purely competitive market for a product, the maximum price consumers are willing to pay i
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!