Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Boston Frame, Inc., produces several different styles and sizes of picture frames. The following activity describes Boston Frame's overhead costs during March: (Click on the

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Boston Frame, Inc., produces several different styles and sizes of picture frames. The following activity describes Boston Frame's overhead costs during March: (Click on the icon to view the overhead costs.) Read the requirements. . . . . . Requirement 1. Calculate the variable overhead rate and efficiency variances for the month of March. (Enter the variances as positive numbers. Enter the currency amounts in the formulas to the nearest cent, then round the final variance amounts to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U).) Begin by computing the variable manufacturing overhead rate variance. First determine the formula for the rate variance, then compute the rate variance for variable manufacturing overhead. Variable overhead rate variance Now compute the variable manufacturing overhead efficiency variance. First determine the formula for the efficiency variance, then compute the efficiency variance for variable manufacturing overhead. Variable overhead E efficiency varianceRequirement 2. Calculate the fixed overhead budget and volume variances for the month of March. (Enter the variances as positive numbers. Label the variance as favorable (F) or unfavorable (U).) Begin by computing the fixed manufacturing overhead budget variance. First determine the formula for the budget variance, then compute the budget variance for fixed manufacturing overhead. Fixed MOH = budget variance Now compute the fixed manufacturing overhead volume variance. First determine the formula for the volume variance, then compute the volume variance for fixed manufacturing overhead. Fixed MOH volume variance Requirement 3. Calculate the total fixed overhead variance for the month of March. (Enter the variances as positive numbers. Label the variance as favorable (F) or unfavorable (U).) First determine the formula for the budget variance, then compute the total fixed overhead variance. Total overhead varianceX Data Table Number of frames produced .. . .... . 30,000 frames Predetermined variable MOH rate .. . . $6.10 per DL hour Predetermined fixed MOH rate .. . . . .$9.00 per DL hour Budgeted fixed manufacturing overhead . $23,000 Actual direct labor hours . . . . 4,200 hours Actual variable manufacturing $26,670 resulting in an actual rate of $6.35* per ... overhead . . . hour Actual fixed manufacturing overhead . $22, 100 Standard direct labor allowed per unit 0.1 hours per frame *$26,670 + 4,200 hours Print DoneX Requirements 1. Calculate the variable overhead rate and efficiency variances for the month of March. 2. Calculate the fixed overhead budget and volume variances for the month of March. 3. Calculate the total fixed overhead variance for the month of March. Print Done

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_2

Step: 3

blur-text-image_3

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

Financial Accounting Fundamentals

Authors: John Wild

4th Edition

0078025591, 9780078025594

More Books

Students also viewed these Accounting questions

Question

What reward will you give yourself when you achieve this?

Answered: 1 week ago