Question
Crystal Glassware Company has the following standards and flexible-budget data. Standard variable-overhead rate $ 5.00 per direct-labor hour Standard quantity of direct labor 2 hours
Crystal Glassware Company has the following standards and flexible-budget data.
| Standard variable-overhead rate | $ | 5.00 | per direct-labor hour |
| Standard quantity of direct labor | 2 | hours per unit of output | |
| Budgeted fixed overhead | $ | 100,000 | |
| Budgeted output | 25,000 | units | |
Actual results for April are as follows:
| Actual output | 19,000 | units | |
| Actual variable overhead | $ | 266,000 | |
| Actual fixed overhead | $ | 96,000 | |
| Actual direct labor | 50,000 | hours | |
|
| |||
Required:
Use the variance formulas to compute the following variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
