Fernandez Manufacturing Uses a Standard Cost System

question 84

Essay

Fernandez Manufacturing uses a standard cost system.Standard and actual data for manufacturing overhead are as follows:
Variable overhead allocation rate: $30 per direct labor hour
Fixed overhead allocation rate: $10 per direct labor hour
Actual overhead incurred (variable and fixed): $45,600
Standards for direct labor are as follows:
Hours per unit 0.5,Direct labor cost per hour $18.00
Actual direct labor for the month: 1,200 hours for a total cost of $24,000
Actual and planned production for the month: 3,000 units
Prepare the journal entry to allocate overhead cost (both variable and fixed)to production.

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Definitions:

Job Performance

The effectiveness and efficiency with which an employee fulfills their roles and responsibilities at work.

Job Rotation

A human resource strategy where employees are moved between different jobs or tasks to learn new skills, reduce boredom, and increase job satisfaction.

Job Depth

The degree of control, autonomy, and decision-making ability an employee has in their role.

Task Variety

Refers to the degree of different activities and skills required in a job, influencing employee motivation and satisfaction.