Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Deluxe, Inc. uses a standard cost system and provides the following information, Click the icon to view the information.) Deluxe allocates manufacturing overhead to production
Deluxe, Inc. uses a standard cost system and provides the following information, Click the icon to view the information.) Deluxe allocates manufacturing overhead to production based on standard direct labor hours. Deluxe reported the following actual results for 2024: actual number of units produced, 1,000 actual variable overhead, $2,500; actual fixed overhead, $3,500; actual direct labor hours, 1,300 Read the requirements 100 25 Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost: AQ = actua! quantity: FOH = fixed overhead SC - standard cost; SQ = standard quantity: VOH = variable overhead) Formula Variance VOH cost variance VOH efficiency variance ,000 2.400 260 Requirements 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. 2. Explain why the variances are favorable or unfavorable. la Print Done e t variances. pverl dide Werne overhead co C = = actual cc $1,200 $2,400 Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units 800 hours 400 units hce Standard direct labor hours 2 hours per unit Print Done
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669ea2736a33c_307669ea273093db.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669ea27413d0e_307669ea273aa425.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669ea274b00bd_308669ea27451a55.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started