Chic Design is a manufacturer of large flower pots for urban settings. The company has these standards: (Click the icon to view the standards.) (Click the icon to view the actual results.) Requirements 1. Compute the variable manufacturing overhead variances. What do each of these variances tell management? 2. Compute the fixed manufacturing overhead variances. What do each of these variances tell management? Actual results Standard price and volume 15 pounds per pot at a cost of $6.00 per pound Direct materials (resin). 2.0 hours at a cost of $23.00 per hour $8.00 per direct labor hour Direct labor... Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead Standard fixed MOH rate $8,000 Chic Design allocated fixed manufacturing overhead to production based on standard direct labor hours. Last month, the company reported the following actual results for the production of 1,100 flower pots: Purchased 17,740 pounds at a cost of $6.20 per pound; Direct materials used 16,940 pounds to produce 1,100 pots Worked 2.5 hours per flower pot (2,750 total DLH) at a Direct labor ... cost of $19.00 per hour Actual variable manufacturing $8.20 per direct labor hour for total actual variable overhead... ... manufacturing overhead of $22,550 Actual fixed manufacturing overhead $7,400 Standard fixed manufacturing overhead allocated based on actual production.. $11,000 $5.00 per direct labor hour (DLH) Print Done Chic Design is a manufacturer of large flower pots for urban settings. The company has these standards: B (Click the icon to view the standards.) (Click the icon to view the actual results.) Requirements 1. Compute the variable manufacturing overhead variances. What do each of these variances tell management? 2. Compute the fixed manufacturing overhead variances. What do each of these variances tell management? ..... Requirement 1. Compute the variable manufacturing overhead variances. What do each of these variances tell management? (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 x ) = rate variance x 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 = efficiency variance x What do each of these variances tell management? The variable manufacturing overhead (MOH) rate variance tells managers that V than expected. The variable MOH were efficiency variance tells managers that actual were than Requirement 2. Compute the fixed manufacturing overhead variances. What do each of these variances tell management? (Abbreviations used: MOH = manufacturing overhead. Enter the variances as positive numbers. Label the variances 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. Riad Mini 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 What do each of these variances tell management? The fixed overhead budget variance tells managers that . The fixed overhead volume variance tells managers that
