Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ashland South Shore Co. produces thingamajigs and uses a standard cost system. Fixed overhead is applied to production at a rate of $34.80 per unit,

Ashland South Shore Co. produces thingamajigs and uses a standard cost system. Fixed overhead is applied to production at a rate of $34.80 per unit, based on budgeted production of 2,975 per month. During December, Ashland South Shore Co. produced 3,140 thingamajigs. Fixed overhead incurred totaled $114,770.

a.

Calculate the fixed overhead spending variance. (Do not round intermediate calculations and round your final answer to the nearest dollar amount. Input the amount as positive value. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). Leave no cell blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Spending variance $ (Click to select)FavorableNoneUnfavorable

b.

Calculate the fixed overhead volume variance. (Do not round intermediate calculations and round your final answer to the nearest dollar amount. Input the amount as positive value. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). Leave no cell blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Volume variance $ (Click to select)UnfavorableFavorableNone

c.

Calculate the over- or under-applied fixed overhead. (Do not round intermediate calculations and round your final answer to the nearest dollar amount. Input the amount as positive value. Omit the "$" sign in your response.)

Fixed overhead $ (Click to select)UnderappliedOverapplied

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Financial Auditing

Authors: Athmane Mokhbi

1st Edition

B09LGTJJFG, 979-8763532265

More Books

Students also viewed these Accounting questions

Question

socialist egalitarianism which resulted in wage levelling;

Answered: 1 week ago

Question

soyuznye (all-Union, controlling enterprises directly from Moscow);

Answered: 1 week ago