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Author Question: J&J Materials and Construction Corporation produces fertilizer and distributes the product by using ... (Read 46 times)

CORALGRILL2014

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on: Mar 6, 2021

Question 1

Cold Products Corporation manufactured 34,000 ice chests during September. The variable overhead cost-allocation base is $14.50 per machine-hour. The following variable overhead data pertain to September:

ActualBudgeted
Production34,000 units30,000 units
Machine-hours15,200 hours10,800 hours
Variable overhead cost per machine-hour:$14.00$14.50

What is the actual variable overhead cost?
◦ $156,600
◦ $177,480
◦ $212,800
◦ $220,400

Question 2

J&J Materials and Construction Corporation produces fertilizer and distributes the product by using dump trucks.  The company uses budgeted fleet hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data:

Budgeted output units680 truckloads
Budgeted fleet hours476 hours
Budgeted variable manufacturing overhead costs for 680 loads$72,590.00
Actual output units produced and delivered615 truckloads
Actual fleet hours376 hours
Actual variable manufacturing overhead costs$67,790.00
What is the flexible-budget variance for variable manufacturing overhead?
◦ $4,800 favorable
◦ $4,800 unfavorable
◦ $2,139 favorable
◦ $2,139 unfavorable
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by CORALGRILL2014 on Mar 6, 2021

juwms

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Reply #1 on: Mar 6, 2021
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CORALGRILL2014

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)

olderstudent

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Reply 3 on: Yesterday
Wow, this really help

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