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- September 13, 2020
- By menge

necesito algo de ayuda en contabilidad. Ustedes son mi salvacion

E8-17 Calculating factory overhead: two variances

Dakota Manufacturing Inc. normally produces 10,000 units of product A each month. Each unit

requires 4 hours of direct labor, and factory overhead is applied on a direct labor hour basis.

Fixed costs and variable costs in factory overhead at the normal capacity are $10 and $5 per

unit, respectively.

Cost and production data for June follow:

Production for the month…………………………………..11,000 units

Direct labor hours used …………………………………….42,000 hours

Factory overhead incurred for:

Variable costs ……………………………………………$48,000

Fixed costs ………………………………………………$103,000

a.Calculate the flexible-budget variance.

b.Calculate the production-volume variance.

c.Was the total factory overhead under- or over applied? By what amount?

E8-16 Calculating factory overhead: two variances

Montana Manufacturing Co. normally produces 10,000 units of product X each month. Each

unit requires 2 hours of direct labor, and factory overhead is applied on a direct labor hour

basis. Fixed costs and variable costs in factory overhead at the normal capacity are $5 and $3

per unit, respectively.

Cost and production data for May follow

Production for the month…………………………………..9,000 units

Direct labor hours used …………………………………….18,500 hours

Factory overhead incurred for:

Variable costs ……………………………………………$28,500

Fixed costs ………………………………………………$52,000a

.Calculate the flexible-budget variance

.b.Calculate the production-volume variance.

c.Was the total factory overhead under- or over applied? By what amount?