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Controller Rachel Tabak of Johnson Inc. is in the process of analyzing its manufacturing overhead costs for March. March results follow: Budgeted amounts: Machine hours
Controller Rachel Tabak of Johnson Inc. is in the process of analyzing its manufacturing overhead costs for March. March results follow: Budgeted amounts: Machine hours 0.50 hours per unit 1Variable overhead rate $15.00 per machine hour Fixed overhead rate $40.00 per machine hour Budgeted fixed overhead $500,000.00 Actual amounts for August: 1Variable overhead incurred $190,000 Fixed overhead incurred $530,000 Machine hours worked 11,000 hours Actual output 20,000 units Budgeted machine hours per unit are used to allocate variable and fixed manufacturing overhead and a four-way variance analysis is used 10. What is the variable overhead spending variance? A} $40,000 unfavorable C) $25,000 favorable E) $39,400 favorable B) $25,000 unfavorable Ii] $40,000 favorable 11. What are the variable overhead efficiency' and variable volume variance, respectively? A} $15,000 favorable; $200,000 unfavorable D} $15,000 unfavorable; there is never a B] $15,000 favorable; there is never a volume volume variance for variable overhead variance for variable overhead E} $3,400 favorable; $0 C} $15,000 unfavorable; $0 12. What is the fixed overhead budget variance? A} $ 30,000 unfavorable C) $200,000 favorable E) $23,400 favorable B] $200,000 unfavorable [J] $ 30,000 favorable 13. What are the xed overhead efficiency and volume variances, respectively? A) $100,000 favorable; $201,000 favorable; D) There is never an efficiency variance for B} $100,000 U; $201,000 U fixed overhead; $200,000 unfavorable C] $0; $200,000 favorable E) $0; $33,400 favorable
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