Calculate the variable overhead spending variance and variable overhead efficiency variance using the format shown in Figure
Fantastic news! We've Found the answer you've been seeking!
Question:
Calculate the variable overhead spending variance and variable overhead efficiency variance using the format shown in Figure 10.8. Clearly label each variance as favorable or unfavorable.
Transcribed Image Text:
She possible explanation for this variance. overhead spending 0. Variance Analysis for Direct Materials, Direct Labor, Variable Overhead, and Fixed Overhead. Niota LLC produces heavy duty work benches made of a specialized metal material. The master budget shows the following standards information and indicates the company expected to produce and sell 4,000 units for the month of May. Direct materials 60 pounds per unit at $3 per pound 8 hours per unit at $14 per hour Direct labor Variable manufacturing overhead 8 direct labor hours per unit at $6 Niota LLC actually produced and sold 4,400 units for the month. During the month, the company purchased 300,000 pounds of material for $960,000 and used 286,000 pounds in production. A total of 30,800 labor hours were worked during the month at a cost of $462,000. Variable overhead costs totaled $195,000 for the month. Budgeted fixed overhead costs Budgeted direct labor hours Standard cost per direct labor hour Actual fixed overhead costs for May per hour With regards to fixed manufacturing overhead, the company also applies these overhead costs to products based on direct labor hours. Fixed manufacturing overhead information for the month of May appears as follows. $ 864,000 +32,000 27 $ $ 990,000 She possible explanation for this variance. overhead spending 0. Variance Analysis for Direct Materials, Direct Labor, Variable Overhead, and Fixed Overhead. Niota LLC produces heavy duty work benches made of a specialized metal material. The master budget shows the following standards information and indicates the company expected to produce and sell 4,000 units for the month of May. Direct materials 60 pounds per unit at $3 per pound 8 hours per unit at $14 per hour Direct labor Variable manufacturing overhead 8 direct labor hours per unit at $6 Niota LLC actually produced and sold 4,400 units for the month. During the month, the company purchased 300,000 pounds of material for $960,000 and used 286,000 pounds in production. A total of 30,800 labor hours were worked during the month at a cost of $462,000. Variable overhead costs totaled $195,000 for the month. Budgeted fixed overhead costs Budgeted direct labor hours Standard cost per direct labor hour Actual fixed overhead costs for May per hour With regards to fixed manufacturing overhead, the company also applies these overhead costs to products based on direct labor hours. Fixed manufacturing overhead information for the month of May appears as follows. $ 864,000 +32,000 27 $ $ 990,000
Expert Answer:
Answer rating: 100% (QA)
Answer Solution i Variable overhead spending variance Actual hours Standard var... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Overhead is the third category of manufacturing costs (Direct materials and direct labor are the other two.) subject to standard costing. We start with the overall overhead variance. Overhead is...
-
rn Example: Adler Company budgeted the following amounts at the beginning of the year: Units Direct labor hours Variable overhead Fixed overhead 150,000 15,000 $30,000 $69,000 At the end of the year,...
-
The following standard costs were developed for one of the products of ABC Company: STANDARD COST CARD PER UNIT Direct materials: 20 pounds x $10 per pound .................................. $200.00...
-
4) Solve the following problems: 9 (b) 1. Apply the DFS based topological sort algorithm to the graph on the left; Your DFS traversal will start with vertext a. Write down the nodes visited during a...
-
The undersigned promises to pay to the order of John Doe Nine Hundred Dollars with interest from date of note. Payment to be made in five monthly installments of One Hundred Eighty Dollars, plus...
-
a. How do marketing information systems aid marketers in their decision making? b. What types of information can be obtained from marketing information systems?
-
Using the data in Your Turn 13.5, how much water would be saved in a month if one-third of a town's population of 15,000 turned the faucet off when brushing their teeth except when rinsing?
-
Sams Subs purchased a delivery van on January 1, 2014, for $35,000. In addition, Sams paidsales tax and title fees of $1,500 for the van. The van is expected to have a four-year life and a salvage...
-
Suppose the returns on an asset are normally distributed. Suppose the historical average annual return for the asset was 5.7 percent and the standard deviation was 18.3 percent. What is the...
-
You are discussing your 401(k) with Dan Ervin when he mentions that Sarah Brown, a representative from Bledsoe Financial Services, is visiting East Coast Yachts today. You decide that you should meet...
-
The deferred tax expense is the Select one: a. Increase in balance of deferred tax asset plus the increase in balance of deferred tax liability. b. Increase in balance of deferred tax liability minus...
-
Pulley, mass moment of inertia Jo For the shown system, m N/m, k2 400 N/m, c = questions 1 and 2. 10 kg, Jo 1 kg.m, ki 1000 500 N.s/m, r 4 cm, Answer 1. Find the equivalent mass of the system in the...
-
Suppose that you are the stakeholder of software project for the Sahana. Your team has identified the requirements of what the software (i.e. Sahana software) must do, which include its behaviour,...
-
Conduct a value chain analysis for Amazon using the example within The Concept of a Company Value Chain in your text as a guide. What conclusions can you draw from your analysis?
-
Each General Electronics manufactures microchips in large quantities. microchip undergoes assembly and testing. The total assembly costs during January 2006 were: 1. Direct materials used Conversion...
-
When Blake Mycoskie visited Argentina in 2006, a bright idea struck him. He was wearing alpargatas resilient, lightweight, canvas slip-ons shoes typically worn by Argentinian farmworkers, during...
-
Your quirky fashion line, ImaMess, is launching its newest line of ugly sweaters for the holiday ugly sweater bashes. Which of the following would be included in the product and market objectives stat
-
Do the three planes x + 2x + x 3 = 4, X X 3 = 1, and x + 3x = 0 have at least one common point of intersection? Explain.
-
Parker Beverages sells a variety of protein shakes and fruit juices to small health food stores. Parker purchases the shakes and juices from leading manufacturers. Identify each of the following...
-
What Is horizontal analysis and how are the numbers calculated?
-
First State Bank offers a wide range of banking services, including checking accounts, certificates of deposit, loans, credit cards, and safety deposit boxes. Bank managers know that customer...
-
Prepare and use contribution margin statements for dropping a line decision (Learning Objective 4) The following operating income data of Abalone Seafood highlight the losses of the fresh seafood...
-
Product mix under constraint (Learning Objective 5) Easy Living of Charlotte, North Carolina, specializes in outdoor furniture and spas. Owner Linda Spring is expanding the store. She is deciding...
-
Outsourcing: alternative use of capacity (Learning Objective 6) Morning Grain makes organic cereal. Costs of producing 140,000 boxes of cereal each year follow: Suppose Kelloggs will sell Morning...
Study smarter with the SolutionInn App