Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. tage inc. employs a standard costing system. the c

Tage Inc. employs a standard costing system. The company has capacity to produce...

60.1K

Verified Solution

Question

Accounting

image

Tage Inc. employs a standard costing system. The company has capacity to produce 300,000 units per year and applies overhead is applied on the basis of direct labour hours. The standard costing system allows two direct labour hours per unit produced. For 2021, the company budgeted variable overhead to be $2,280,000 and fixed overhead to be $900,000. Actual results for the year are as follows: Units produced Direct labour Variable overhead Fixed overhead 280,000 570,000 hours $2,337,000 $872,000 Required: (A) Compute the predetermined variable overhead rate (SVOR). (B) Compute the variable overhead spending variance and the variable overhead efficiency variance and indicate whether each variance is favourable or unfavourable. (C) Compute the predetermined fixed overhead rate (SFOR). (D) Compute the applied fixed overhead. [Note, you will need to use the Standard Hours in your calculation.] (E) Compute the fixed overhead spending variance and the fixed overhead volume variance. (F) How do the variable overhead variances and the fixed overhead variances help managers (i.e., what do the variances tell us)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1 point Find the cross product cx d where c 3i j k and d...

Calculus
Q

Please create a C++ program that will ask a high school group that is made of...

Programming
Q

Another planet has the same spherical radius as Earth, but has 3 times Earth's density. (a) What...

Physics
Q

Please briefly answer all the questions below, and writing those clearer and tidier (It is best...

Physics
Q

Imagine DNA like molecules were recovered from several single celled organisms found in the liquid...

Biology
Q

10 A carnot engine having an efficiency of t of heat engine is used as...

Physics
Q

0 Certain quantity of water cools from 70 C to 60 in the first 5...

Physics
Q

Solve the compound inequality.-4xs-12 or 2x-262-12Select the correct choice below and, if necessary, fill in...

Basic Math
Q

adjusting entries are recorded (select all that apply) a. to ensure revenues and expenses are...

Accounting
Q

Problem 11-01 Bramble Company purchased Machine #201 on May 1, 2020. The following information relating...

Accounting
Q

On January 1, 2018, M Company granted 100,000 stock options to certain executives. The options...

Accounting
Q

Branches 2015 2016 2017 2018 + Branch 1 120 155 192 182 Branch 2 185...

Finance