Calgary Paper Company produces paper for photocopiers. The company has developed standard overhead rates based on a monthly capacity of 64,000 direct-labor hours as follows: Standard costs per unit (one box of paper): Variable overhead (2 direct-labor hours @ $4.5 per hour) Fixed overhead (2 direct-labor hours @ $10 per hour) Total $ 9 20 $29 During April, 32,000 units were scheduled for production; however, only 27,000 units were actually produced. The following data relate to April. 1. Actual direct-labor cost incurred was $935,000 for 55,000 actual hours of work. 2. Actual overhead incurred totaled $858,500, of which $258,500 was variable and $600,000 was fixed. Required: Prepare two exhibits similar to Exhibit 11-6 and Exhibit 11-8 in the chapter, which show the following variances. State whether each variance is favorable or unfavorable, where appropriate. 1. Variable-overhead spending variance. 2. Variable-overhead efficiency variance. 3. Fixed-overhead budget variance. 4. Fixed-overhead volume variance. 2 2. Actual overhead incurred totaled $858,500, of which $258,500 was variable and $600.000 was fixed. 25 points Required: Prepare two exhibits similar to Exhibit 11-6 and Exhibit 11-8 in the chapter, which show the following variances. State whether each variance is favorable or unfavorable, where appropriate. 1. Variable-overhead spending variance 2. Variable-overhead efficiency variance 3. Fixed-overhead budget variance, 4. Fixed-overhead volume variance. ebook Complete this question by entering your answers in the tabs below. Print Req 1 and 2 Req 3 and 4 References . Variable-Overhead Spending and Efficiency Variances. (Select "None" and enter "O" for no effect (i.e., zero variance). Round "Actual Rate" and "Standard Rate" to 2 decimal places.) det Variable-Overhead Spending And Efficiency Variances (Hours = Direct-Labor Hours) (2) (3) Projected Variable Overhead Flexible Budget: Variable Overhead Actual Variable Overhead Variable Overhead Applicd To Work-In-Process Actual aty (AQ) Actual Ratc (AVR) Actual aty (AQ) Standard Rate (SVR) Standard Allowed Qty (SQ) Standard Rate (SVR) Standard Allowed Qty (SQ) Standard Rate (SVR) X X M hours per hour hours per hour hours per hour hours per hour Variable overhead spending variance Variable overhead efficiency variance No difference 2. Actual overhead incurred totaled $858,500, of which $258,500 was variable and $600,000 was fixed. Required: Prepare two exhibits similar to Exhibit 11-6 and Exhibit 11-8 in the chapter, which show the following variances. State whether each variance is favorable or unfavorable, where appropriate. 1. Variable-overhead spending variance. 2. Variable-overhead efficiency variance. 3. Fixed-overhead budget variance. 4. Fixed-overhead volume variance. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 and 4 Fixed-Overhead Budget and Volume Variances. (Select "None" and enter "0" for no effect (i.e., zero variance).) (1) Actual Fixed Overhead Fixed-Overhead Budget And Volume Variances (Hours = Direct-Labor Hours) (2) (3) Budgeted Fixed Overhead Fixed Overhead Applied To Work In Process Standard Allowed Standard Fixed- Hours Overhead Rate hours per hour $ 0 Fixed-overhead budget variance Fixed-overhead volume variance
