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
son4ous [18]
3 years ago
9

Plimpton Company produces countertop ovens. Plimpton uses a standard costing system. The standard costing system relies on direc

t labor hours to assign overhead costs to production. The direct labor standard indicates that two direct labor hours should be used for every oven produced. The normal production volume is 100,000 units. The budgeted overhead for the coming year is as follows:
Fixed overhead $770,000
Variable overhead 444,000
Plimpton applies overhead on the basis of direct labor hours. During the year, Plimpton produced 97,000 units, worked 196,000 direct labor hours, and incurred actual fixed overhead costs of $780,000 and actual variable overhead costs of $435,600.
Required:
1. Calculate the standard fixed overhead rate and the standard variable overhead rate.
2. Compute the applied fixed overhead and the applied variable overhead.
What is the total fixed overhead variance?
What is the total variable overhead variance?
3. Break down the total fixed overhead variance into a spending variance and a volume variance.
Spending Variance $
Volume Variance $
4. Compute the variable overhead spending and efficiency variances.
5. Now assume that Plimpton’s cost accounting system reveals only the total actual overhead. In this case, a three-variance analysis can be performed. Using the relationships between a three- and four-variance analysis, indicate the values for the three overhead variances.
Business
1 answer:
Korolek [52]3 years ago
8 0

Answer:

Explanation:

Hours Required Per Unit = 2

Production Volume = 100,000

Total Hours required = 200,000 units

1. The standard fixed overhead rate will be:

= Fixed overhead/Total hours required

= $770,000/200,000

= $3.85/hour

The standard variable overhead rate will be:

= Variable Overhead /Total Hours required

= $440,000/200000

= $2.22 /hour

2. The applied fixed overhead will be:

= standard fixed overhead rate × actual production × hours required per unit

= 3.85 × 97000 × 2

= $746,900

The applied variable overhead will be:

= standard variable overhead rate × actual production × hours required per unit

= 2.22 × 97000 × 2

= $430,680

The total fixed overhead variance will be:

= Actual overhead - Standard overhead

= $435600 - $430680

= $4920

The total variable overhead variance will be:

= $780000 - $746900

= $33100

3. The spending variance of the total fixed overhead variance will be:

= (3.85 × 200000) - 780000

= -10000

The volume variance of the total fixed overhead variance will be:

= 746900 - (3.85 × 200000)

= -23100

4. The variable overhead spending variance will be:

= (2.22 × 196000) - 430680

= -480

The variable overhead efficiency variances will be:

= 430680 - (2.22 × 196000)

= -4440

5. Based on the information given, the variances will be:

Volume Variance = -23100

Efficiency Variance = -4440

Spending Variance = (-480-10000) = -10480

You might be interested in
Ellen and Uncle Moneybags make a contract where Ellen will buy Uncle Moneybags’ boat for $100,000 if Ellen gets a T.V. show cont
Tom [10]

When Ellen sues Uncle Moneybags for the $10,000, the type of equitable remedy would be restitution.

<h3>What is restitution?</h3>

It should be noted that restitution simply means the restoration of a particular thing that's lost or stolen.

In this case, when Ellen sues Uncle Moneybags for the $10,000, the type of equitable remedy would be restitution.

Learn more about restitution on:

brainly.com/question/10444717

6 0
2 years ago
Which of the following is not correct? a. The consumer price index gives economists a way of turning dollar figures into meaning
Marina CMI [18]

Answer:

The consumer price index is used to measure the quantity of goods and services that the economy is producing.

Explanation:

CPI  or consumer price index is a measure of changes in the average prices of a basket of products and services in a given time. The selected goods and services are a fair representation of consumption expenditure in the economy. Economists use the CPI as a Macroeconomic indicator of inflation.

As a measure of inflation, the CPI statistics communicate increases or decreases in the prices of goods and services in the economy. It forms a basis for policy decisions by the government that aid in the prevention of reduced purchasing power of the dollar.  CPI is all about changes in prices and nothing to do with the production of goods and services.

5 0
3 years ago
John is working in an organization. He takes backup of files through a replication process and wants to know the amount of time
Law Incorporation [45]

Answer:

<u>Repadmin latency</u>

Explanation:

According to the way the Microsoft system is designed, the Repadmin application (Repadmin.exe) is a tool designed for the diagnosis of replications problems in any Active Directory.

The Repadmin latency command gives administrators the ability to determine the amount of time taken by the backup files between the replications. For example, the command, <em>"repadmin <domain.test> /latency."</em>

4 0
3 years ago
You create a screen shot illustrating what the new system will potentially look like. this is an example of ___________.
xeze [42]
This is an example of prototyping
3 0
3 years ago
Seth and Rachel have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership i
dimulka [17.4K]

Answer:

D. $8,000.

Explanation:

*Net loss is considered as the amount to be allocated between partners on equal sharing ratio. Otherwise the net allocated amount will be 76,000 ( -16000-5000-10000-27000-18000) net loss and Seth's share will be -38,000 (76000/2) . Question has no option of this amount.

                                          Statement of Partners Equity

                                          For the Year end MM-DD-YY

                                                    Seth                      Rachel

                                                       $                             $              

Beginning Capital balance =         0                             0

Investment by partners       =     50,000                 100,000    

interest Allowance              =       5000                     10,000

Salary Allowance                =       27000                    18,000

Net loss Allocated              =    <u>   (8,000)   </u>             <u>  (8,000)  </u>

Ending capital balance       =    <u>  74,000        </u>          <u> 120,000</u>

8 0
3 years ago
Other questions:
  • On August 4, Rothchild Company purchased on account 12,000 units of raw materials at $14 per unit. During August, raw materials
    12·1 answer
  • Prioritization is an example of a skill that helps you reach long term goals because...
    15·1 answer
  • Match the word with the best definition.
    12·1 answer
  • Kacy Spade, owner, invested $10,750 cash in the company in exchange for common stock. The company purchased office supplies for
    15·1 answer
  • On January 1, Boston Enterprises issues bonds that have a $2,200,000 par value, mature in 20 years, and pay 9% interest semiannu
    6·1 answer
  • explain how plants and algae use sunlight how is this process important to other living in an ecosystem
    13·2 answers
  • Which of the following depicts the proper sequence of steps in the accounting cycle?
    14·1 answer
  • The builder of a new arena is sued after a section of the roof collapses during a football game, injuring hundreds of people and
    14·1 answer
  • Participative leadership is enhanced when:______
    8·1 answer
  • A notary signing agent wants to stand out from other nsas by guaranteeing to borrowers and contracting companies that all of her
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!