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Solved assignments for manufacturing overhead and operating income

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Added on  2019-09-23

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This page contains solved assignments for manufacturing overhead and operating income. It includes calculations for fixed manufacturing overhead, direct material efficiency, direct manufacturing labor efficiency, budgeted manufacturing overhead, contribution margin, net operating income, and more. The assignments also discuss the difference between absorption costing and variable costing, and how to improve bonus compensation for supervisors.

Solved assignments for manufacturing overhead and operating income

   Added on 2019-09-23

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Solved assignments for manufacturing overhead and operating income_1
2Table of ContentsAnswer 8.39.....................................................................................................................................3Part 1............................................................................................................................................3Part 2............................................................................................................................................3Answer 9.22.....................................................................................................................................5Part A...........................................................................................................................................5Part B...........................................................................................................................................5Part C...........................................................................................................................................5Part D...........................................................................................................................................6
Solved assignments for manufacturing overhead and operating income_2
3Answer 8.39Part 1Total Fixed Manufacturing Overhead-2012= Direct Manufacturing Hours * Cost Per hour = 40,000 * $8= $320,000Schedule for Jan-2012InputCostDirect materials cost23,100 lb. at $5.20 per lb $ 120,120 Direct manufacturing labour40,000 hrs. at $14.60 per hr. $ 584,000 Manufacturing overhead $ 560,000 Variable $ 240,000 Fixed $ 320,000 Standard manufacturing cost $ 1,264,120*Variable manufacturing overhead = Total Mfg. Overhead – Fixed Mfg. Overhead= $600,000 - $320,000 = $240,000Part 2ActualBudgetedVarianceVariance%F/UDirect Material price $ 5.20 $ 5.00 $ 0.204.00%UnfavourableDirect materials efficiency variance2.963.00-0.04-1.28%FavourableDirect manufacturing labour price variance $ 14.60 $ 15.00 $ (0.40)-2.67%FavourableDirect manufacturing labour efficiency variance5.145.000.142.82%UnfavourableTotal manufacturing overhead spending variance $ 600,000 $ 594,000 $ 6,000 1.01%UnfavourableVariable manufacturing overhead efficiency variance $ 30.77 $ 30.00 $ 0.772.56%UnfavourableProduction volume variance7,800 8,333-533-6.40%Unfavourable
Solved assignments for manufacturing overhead and operating income_3

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