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Chapter 22 Exercises

# Chapter 22 Exercises - 93,483 30753 62730 Overhead flexible...

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P22-25A Req. 1 Root Recliners Flexible Budget for Actual Outputs Sales revenue \$507,525 Variable manufacturing costs: Calculations for Budgeted Actual Amounts Direct materials 53,667 6150/1025=6 yrd per recliner 6*1005=6030 total yrds 6030*8.90 Direct labor 94,470 10250/1025=10 hrs per recliner 10*1005=10050 total hours 10050*9.40 Variable overhead 30,753 6150/1025=6 6*1005=6030 6030* Fixed costs Fixed overhead 62,730 Total cost of goods sold 241,620 Gross profit \$265,905 Req. 2 Price variances Direct materials 1260 (8.70-8.90)*6300 Direct labor 1478 (9.55-9.40)*9850 Efficiency variances Direct materials 2403 (6300-6030)*8.90 Direct labor 1880 (9850-10050)*9.40 Root Recliners Manufacturing Overhead Variances Total overhead variance: Actual overhead cost \$105,680 40950+64730 92259 Standard overhead allocated to production 92,259 9.37 Total overhead variance \$13,421 U Overhead flexible budget variance: Actual overhead cost \$105,680 40950+64730 Flexible budget overhead for actual outputs

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Unformatted text preview: 93,483 30753+62730 Overhead flexible budget variance \$12,197 U Production volume variance: Flexible budget overhead for actual outputs \$93,483 Standard overhead allocated to production 92,259 Production volume variance \$1,224 U Favorable because actual price is cheaper UnFavorable because actual cost is higher UnFavorable because actual quantity used is higher Favorable because less actual hours were used ( ( 31365+62730 ) /10250)*10050 P22−27A Given Direct Labor flexible budget variance 1385 U Standard labor Rate 10.00 Actual labor rate 10.50 Actual Standard direct labor hours 4450 Req. 1 Standard labor cost \$44,500 4450*10.00 Actual labor cost \$45,885 44500+1385 Direct labor hours 4,370 45885/10.50 Req. 2 Direct labor price variance \$2,185 U (10-10.5)*4370 Direct labor efficiency variance \$800 F (4370-4450)*10...
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Chapter 22 Exercises - 93,483 30753 62730 Overhead flexible...

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