Tco 10 sebastian company which manufactures

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Question 3. Question : (TCO 10) Sebastian Company, which manufactures electrical switches, uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below:Variable overhead (5 hours at $12 per direct manufacturing labor hour) $ 60Fixed overhead (5 hours at $15 per direct manufacturing labor hour,based on capacity of 200,000 direct manufacturing labor hours per month) 75Total overhead per switch $ 135
The following information is available for the month of December: •46,000 switches were produced, although 40,000 switches were scheduled to be produced. •225,000 direct manufacturing labor hours were worked at a total cost of $5,625,000. •Variable manufacturing overhead costs were $2,750,000. •Fixed manufacturing overhead costs were $3,050,000. What amount should be credited to the Allocated Manufacturing Overhead Control account for the month of December?
Points Received: 6 of 6 Comments: Question 4. Question : (TCO 10) Sebastian Company, which manufactures electrical switches, uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below:
Variable overhead (5 hours at $12 per direct manufacturing labor hour) $ 60 Fixed overhead (5 hours at $15 per direct manufacturing labor hour,based on capacity of 200,000 direct manufacturing labor hours per month) 75 Total overhead per switch $ 135 The following information is available for the month of December: •46,000 switches were produced, although 40,000 switches were scheduled to be produced. •225,000 direct manufacturing labor hours were worked at a total cost of $5,625,000. •Variable manufacturing overhead costs were $2,750,000. •Fixed manufacturing overhead costs were $3,050,000.
Under the 2-variance method, the flexible-budget variance for December was
Points Received: 6 of 6 Comments:
Question 5. Question : (TCO 10) If variable overhead is underallocated, this means the flexible-budget variance for variableoverhead is unfavorable.
Instructor Explanation: See Chapter 8.
Points Received: 6 of 6

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