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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

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Answer:

The option c is a right answer.

Explanation:

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Step 1: First compute the weight-age of each portfolio.

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Step 3: After multiply the amounts, the expected return comes.

Mathematically,

Step 1:  Weight-age is to be computed by

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where total stock amount = $8,000 + $4,000 +$12,000

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For A = $8,000 ÷ $24,000 = 0.3333

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For C = $12000 ÷ $24,000 = 0.50

Step 2:

Expected Return for A = Weight-age × invested return

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                                      = 5.83%

Expected Return for B  = Weight-age × invested return

                                      =  0.1666 × 11.0%

                                      = 1.83%

Expected Return for C = Weight-age × invested return

                                      = 0.50 × 4.30%

                                      = 2.15%

So, the total return on her portfolio is a sum of Expected Return for A + Expected Return for B +Expected Return for C

=  5.83% + 1.83% + 2.15%

= 9.81 %

Hence, the return on her portfolio is 9.81% .

Therefore, the option c is a right answer

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Answer:

Explained below.

Explanation:

With a product layout, equipment breakdown has serious implications because the separate pieces of equipment are closely tied together. If one piece of equipment fails, the line will quickly come to a halt. Consequently, preventive maintenance to reduce the failure rate is advisable. In contrast, a process layout often contains duplicative equipment so that if one particular piece of equipment fails, the work can usually be shifted to another piece of equipment. Consequently, there is less need for preventive maintenance and less need for repair of equipment when it does break down. Moreover, process layouts utilize more skilled workers who tend to take better care of the equipment than the lower-skilled workers do in a product layout system.

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a. A potentially huge rate of output.

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d. The low unit price concerning material administration.

e. High utilization of labor and tools.

f. Routing as well scheduling are being built into the design.

g. Accounting, purchasing, including inventory control are routine.

* The main disadvantages regarding the product layouts include:

a. Specialization can lead to dull, repetitive jobs with little opportunity for personal satisfaction or creativity.

b. Workers may have little interest in maintaining equipment or in the quality of output.

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d. The system is highly susceptible to shutdowns caused by equipment failure or excessive absenteeism.

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d. Specific stimulation systems are possible.

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b. Routing and scheduling must be done for each new job.

c. Equipment utilization valuations are habitually low.

d. Material handling is slower, less efficient, and more costly per unit than is the case in a product layout.

* Example of product layout includes self-service cafes, car assembly as well as car valeting.

* Example of process layout are milling, drilling, grinding, hydraulic presses, as well as lathes)

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