Brown Company Makes Watches

question 59

Essay

Brown Company makes watches.The budgeted fixed overhead costs for 2019 total $324,000.The company uses direct labour-hours for fixed overhead allocation and anticipates 10,800 hours during the year for 540,000 units.An equal number of units are budgeted for each month.During October, 48,000 watches were produced and $28,000 was spent on fixed overhead.Required:
a.Determine the fixed overhead rate for 2019 based on the units of input.
b.Determine the fixed overhead static-budget variance for October.
c.Determine the production-volume overhead variance for October.

Prepare journal entries for transactions related to a process costing system.

Understand the role of cost reconciliation reports in process costing and how to interpret them.

Evaluate the assignment of costs to units in work in process and completed units.

Apply the weighted-average method in process costing to determine equivalent units of production.

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Definitions:

Diagnostic

Pertaining to the identification of the nature or cause of a health problem, often involving analysis of physical symptoms and medical testing.

Statistical Manual

Refers generally to comprehensive publications that categorize and define statistical data or diagnostic criteria, such as the DSM for psychiatric disorders.

Psychological Disorders

A range of conditions characterized by abnormal thoughts, feelings, or behaviors that may cause distress or prevent normal functioning.

Psychological Disorder

A condition characterized by abnormal thoughts, feelings, and behaviors that impair daily functioning.