Creger Corporation, which makes landing gears, has provided the following data for a recent month Budgeted production 1,800 gears Standard machine hours per gear 5 3 machine hours Budgeted supplies cost $ 5 90 per machine hour Actual production 1,600 gears Actual machine hours 8,700 machine hours Actual supplies cost (total) $ 49,682 Required Determine the rate and efficiency variances for the variable overhead item supplies and indicate whether those variances are favorable or unfavorable (Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and None for no effect (i e , zero variance) Input all amounts as positive values ) Viger Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine hours (MHs) The company has provided the following data for the most recent month Budgeted level of activity 7,900 MHs Actual level of activity 8,100 MHs Standard variable manufacturing overhead rate $ 6 60 per MH Actual total variable manufacturing overhead $ 51,200 What was the variable overhead rate variance for the month Multiple Choice $2,260 Favorable $940 Favorable $1,434 Favorable $1,320 Unfavorable The following labor standards have been established for a particular product Standard labor hours per unit of output 4 3 hours Standard labor rate $ 16 80 per hour The following data pertain to operations concerning the product for the last month Actual hours worked 5,300 hours Actual total labor cost $ 89,570 Actual output 1,100 units Required a What is the labor rate variance for the month b What is the labor efficiency variance for the month (Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and None for no effect (i e , zero variance) Input all amounts as positive values )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 18, 2024

Creger Corporation, which makes landing gears, has provided the following data for a recent month: Budgeted production 1,800 gears Standard machine-hours per gear 5.3 machine-hours

Creger Corporation, which makes landing gears, has provided the following data for a recent month:


Budgeted production		1,800	gears
Standard machine-hours per gear		5.3	machine-hours
Budgeted supplies cost	$	5.90	per machine-hour
Actual production		1,600	gears
Actual machine-hours		8,700	machine-hours
Actual supplies cost (total)	$	49,682

Required:

Determine the rate and efficiency variances for the variable overhead item supplies and indicate whether those variances are favorable or unfavorable.

(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Viger Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month:


Budgeted level of activity		7,900	MHs
Actual level of activity		8,100	MHs
Standard variable manufacturing overhead rate	$	6.60	per MH
Actual total variable manufacturing overhead	$	51,200

What was the variable overhead rate variance for the month?

Multiple Choice

$2,260 Favorable
$940 Favorable
$1,434 Favorable
$1,320 Unfavorable

The following labor standards have been established for a particular product:


Standard labor hours per unit of output		4.3	hours
Standard labor rate	$	16.80	per hour

The following data pertain to operations concerning the product for the last month:


Actual hours worked		5,300	hours
Actual total labor cost	$	89,570
Actual output		1,100	units

Required:

a. What is the labor rate variance for the month?

b. What is the labor efficiency variance for the month?

(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)