Acme Company manufactures widgets and uses a standard cost a…
Acme Company manufactures widgets and uses a standard cost accounting system. Acme applies manufacturing overhead based on machine hours and the machine hour standard is 1.25 hours per widget. During the current year, actual production is 15,000 units and actual fixed manufacturing overhead costs are $585,000. Budgeted fixed manufacturing overhead costs are $630,000 and the fixed manufacturing overhead volume variance is $30,000 unfavorable. What is Acme’s standard fixed manufacturing overhead rate per machine hour?
Read DetailsAcme Company uses a standard cost accounting system. All raw…
Acme Company uses a standard cost accounting system. All raw materials are direct materials, and all the raw materials purchased during the year are used during the year. The spending variance for direct materials is $6,300 favorable. Acme makes the following entry to record the use of direct materials: Dr. Work in Process Inventory $71,700, Dr. Quantity Variance $10,200, Cr. Raw Materials Inventory $81,900. The journal entry that Acme makes to record the purchase of direct materials includes:
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