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
Evgesh-ka [11]
3 years ago
6

Flick Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standar

d direct labor-hours. The company's total budgeted variable and fixed manufacturing overhead costs at the denominator level of activity are $20,000 for variable overhead and $30,000 for fixed overhead. The predetermined overhead rate, including both fixed and variable components, is $2.50 per direct labor-hour. The standards call for two direct labor-hours per unit of output produced. Last year, the company produced 11,500 units of product and worked 22,000 direct labor-hours. Actual costs were $22,500 for variable overhead and $31,000 for fixed overhead.
Required:
a. What is the denominator level of activity?
b. What were the standard hours allowed for the output last year?
c. What was the variable overhead spending variance?
d. What was the variable overhead efficiency variance?
e. What was the fixed overhead budget variance?
f. What was the fixed overhead volume variance?
Business
1 answer:
kondaur [170]3 years ago
7 0

Answer:

Variable rate = 20000 /20000 = $1 per DLH

Fixed rate = 30000/20000 = $1.5 per DLH

Predetermined overhead rate = Variable rate + Fixed rate

Predetermined overhead rate = 2.5

a. Predetermined overhead rate = Estimated total fixed + variable overhead / Estimated level of activity

2.5 = (20,000 + 30,000] / Estimated level of activity

2.5 = 50,000 / Estimated level of activity

Estimated level of activity = 50,000 /2.5

Estimated level of activity = 20,000 Direct labor hours

b. Standard hours = Number of actual output * Standard hours per unit

Standard hours = 11,500 units * 2 hours

Standard hours = 23,000 hours

c. Variable overhead spending variance = Actual variable cost - [Actual hours *SR]

= 22500 - [22000*1]

= 22500 -22000

= 500 U

d. Variable overhead efficiency variance =SR[AH-SH allowed for actual output]

= 1*[22000 - (11500 units * 2)]

= 1*[22000 - 23000]

= 1*1000

= 1000 F

e. Fixed overhead budget variance = Actual fixed cost -budgeted fixed overhead cost

= 31000- 30000

= 1000 U

f. Fixed overhead volume variance = Budgeted fixed overhead cost - Standard fixed overhead cost allowed for actual output

= 30000 - [11500 units* 2SH*1.5 rate]

= 30000 - 34500

= 4500 F

You might be interested in
Which of the following is not a measure of the reliability of the supply chain?
Pachacha [2.7K]

Answer:

Option B, Supply chain response time

Explanation:

The reliability of the supply chain represents the amount of good performance of the distribution chain. The highest priorities for supply chain practitioners are rising trust, decreased inventory and market readiness.

The overall response time for the supply chain is the capacity of the supply chain to react to market demand rapidly. When a market demand transition is observed, the supply chain has to stabilise.  

The response time of the supply chains is sometimes characterised by minimal changes in market demand.

Examples of operations in the supply chain involve processing, manufacturing, architecture, development, shipping and transportation.

6 0
2 years ago
The common stock of Detroit Engines has a beta of 1.34 and a standard deviation of 11.4 percent. The market rate of return is 11
stealth61 [152]

Answer:

The firm's cost of equity is C. 14.05 percent

Explanation:

Hi, we need to use the following formula in order to find the cost of equity of this firm.

r(e)=rf+beta(rm-rf)

Where:

r(e) = Cost of equity

rf = risk free rate

rm = Market rate of return

Everything should look like this.

r(e)=0.04+1.34(0.115-0.04)=0.1405

So, this firm´s cost of equity is 14.05%

Best of luck

6 0
3 years ago
A Soviet interpretation of this poster would claim that
andrew-mc [135]
<span>A Soviet interpretation of this poster would claim that
</span>
Americans are practicing economic imperialism
so correct option i conclude is A
hope it helps
8 0
3 years ago
Read 2 more answers
Assume that product Alpha and product Beta are both priced at $1 per unit and that Ellie has $20 to spend on Alpha and Beta. She
alexira [117]

Answer:

D.

Explanation:

Marginal Utility puts a numerical value on the amount of satisfaction that a consumer gets from buying an additional unit of a product or service. Therefore based on this information it can be said that the information provided in the question indicates that in order to maximize utility, Ellie should buy more of Alpha and less of Beta, mainly due to the fact that the marginal cost of Alpha is double that of Beta and both cost the same price.

8 0
3 years ago
Assume Metro Company had a net income of​ $2,100 for the year ending December 2018. Its beginning and ending total assets were​
Sever21 [200]

Answer:

7.92%

Explanation:

The computation of the return on total assets is shown below:

Return on assets = (Net income) ÷ (average of total assets)

where,  

Net income is $2,100

Average total assets = (Beginning total assets + ending total assets) ÷ 2

= ($33,500 + $19,500) ÷ 2

= $26,500

Now put these values to the above formula  

So, the ratio would equal to

= $2,100 ÷ $26,500

= 7.92%

7 0
3 years ago
Other questions:
  • Wesimann Co. issued 13-year bonds a year ago at a coupon rate of 8.5 percent. The bonds make semiannual payments and have a par
    9·2 answers
  • Fin has been a new manager for a couple of weeks. over time, he realizes his team likes to socialize during meetings, which tend
    10·1 answer
  • I study French so I can talk to my cousin who lives in Paris
    7·1 answer
  • S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the
    9·1 answer
  • Morgan is interested in upgrading to a new sofa for her apartment. Morgan looks online to see what new models her favorite sofa
    15·1 answer
  • Drag the tiles to the correct boxes to complete the pairs.Match the specifications to the criteria that the bank looks into befo
    7·1 answer
  • 1. A company sells a plant asset that originally cost $375,000 for $125,000 on December 31, 2017. The accumulated depreciation a
    6·1 answer
  • Exercise 4-15A Calculate net cash flows (LO4-7) Below are several transactions for Meyers Corporation for 2021. Issue common sto
    9·1 answer
  • The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 45,000 shares were origina
    15·1 answer
  • When the fed buys government securities, banks' reserves ________, the quantity of money ________, and the federal funds rate __
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!