Edwards PUOIOMIS 5. Armstrong Foods processes bags of organic frozen fruits sold at specialty grocery stores. (Click the icon to view additional information.) Read the requirements Requirement 1. How much variable overhead would have been allocated to production? How much fixed overhead would have been allocated to production? The variable overhead allocated to production is Now determine the fixed overhead allocated to production. The fixed overhead allocated to production is Requirement 2. Compute the variable MOH rate variance and the variable MOH efficiency variance. What do these variances tell managers? Begin by determing the formula for the variable MOH rate variance, then calculate the variable overhead rate variance, (Enter the result as a positive number. Enter rates to two decimal places. Label the variance as favorable (F) or unfavorable (U).) Variable overhead (1) (2) (3) rate variance x (4) This variance tells managers that Armstrong Foods actually incurred (5) on variable manufacturing overhead than they would have expected given the actual hours used. Now determine the formula for the variable MOH efficiency variance, then calculate the efficiency varlance. (Enter the result as a positive number. Enter any rates to two decimal places. Label the variance as favorable (F) or unfavorable (U) Variable overhead (6) X (7) (8) efficiency vanance (9) x This variance tells managers that Armstrong Foods used (10) actual volume of output. direct labor hours than anticipated for the Requirement 3. Compute the fixed MOH budget varlance and the fixed overhead volume variance. What do these variances tell managers? Begin by determing the formula for the fixed MOH budget variance, then calculate the fixed budget variance. (Enter the result as a positive number. Label the variance as favorable (F) or unfavorable (U).) Fixed MOH (12) = budget varlance (13) This variance tells us that Armstrong Foods spent (14) than anticipated on fixed overhead costs. Now determine the formula for the fixed overhead volume variance, then calculate the volume variance. (Enter the result as a positive number. Label the variance as favorable (F) or unfavorable (U).) Fixed MOH (15) (16) = volume variance |(17) This variance tells managers that Armstrong Foods produced (18) originally expected cases of frozen organic fruits than 1: More Info The company allocates manufacturing overhead based on direct labor hours. Armstrong has budgeted fixed manufacturing overhead for the year to be $627.000. The predetermined fixed manufacturing overhead rate is $16.80 per direct labor hour, while the standard variable manufacturing overhead is $0.65 per direct labor hour. The direct labor standard for each case is one - quarter (0.25) of an hour. w The company actually processed 152,000 cases of frozen organic fruits during the year and incurred $684.000 of manufacturing overhead. Of this amount, $642,000 was fixed. The company also incurred a total of 42,000 direct labor hours 2: Requirements 1. How much variable overhead would have been allocated to production? How much fixed overhead would have been allocated to production? 2. Compute the variable MOH rate variance and the variable MOH efficiency varlance. What do these variances tell managers? 3. Compute the fixed MOH budget varlance and the fixed overhead volume varlance. What do these varlances tell managers? 3. Definition manufacturing overhead (1) Standard hours allowed Standard rate Actual hours Actual quantity purchased C) Actual rate (2) Standard hours allowed Standard rate ( Actual hours Actual quantity purchased Actual rate (3) D Standard hours allowed Standard rate (4) O (5) less mare Actual hours Actual quantity purchased O Actual rate KDU (6) 00 Standard hours allowed Standard rate Actual hours Actual quantity purchased Actual rate 0 0 0 0 0 0 0 0 OO U Standard hours allowed Standard rate Actual hours Actual quantity purchased Actual rate (8) Standard hours allowed Standard rate (9) (10) loss more 0000 Actual hours Actual quantity purchased Actual rate 000 (11) O Actual fixed overhead O Budgeted fixed overhead O Standard hours allowed Standard quantity allowed Standard rate 0 Std. fixed overhead cost allocated to production (12) (13) Actual fixed overhead Budgeted fixed overhead Standard hours allowed O Standard quantity allowed D Standard rate Std. fixed overhead cost allocated to production DU (14) O less d more (15) O O Actual fixed overhead O Budgeted fixed overhead O Standard hours allowed O Standard quantity allowed Standard rate Std. fixed overhead cost allocated to production (16) 0 Actual fixed overhead Budgeted fixed overhead Standard hours allowed Standard quantity allowed O Standard rate 0 Std. fixed overhead cost allocated to production (17) 0 CU (18) O more less Edwards PUOIOMIS 5. Armstrong Foods processes bags of organic frozen fruits sold at specialty grocery stores. (Click the icon to view additional information.) Read the requirements Requirement 1. How much variable overhead would have been allocated to production? How much fixed overhead would have been allocated to production? The variable overhead allocated to production is Now determine the fixed overhead allocated to production. The fixed overhead allocated to production is Requirement 2. Compute the variable MOH rate variance and the variable MOH efficiency variance. What do these variances tell managers? Begin by determing the formula for the variable MOH rate variance, then calculate the variable overhead rate variance, (Enter the result as a positive number. Enter rates to two decimal places. Label the variance as favorable (F) or unfavorable (U).) Variable overhead (1) (2) (3) rate variance x (4) This variance tells managers that Armstrong Foods actually incurred (5) on variable manufacturing overhead than they would have expected given the actual hours used. Now determine the formula for the variable MOH efficiency variance, then calculate the efficiency varlance. (Enter the result as a positive number. Enter any rates to two decimal places. Label the variance as favorable (F) or unfavorable (U) Variable overhead (6) X (7) (8) efficiency vanance (9) x This variance tells managers that Armstrong Foods used (10) actual volume of output. direct labor hours than anticipated for the Requirement 3. Compute the fixed MOH budget varlance and the fixed overhead volume variance. What do these variances tell managers? Begin by determing the formula for the fixed MOH budget variance, then calculate the fixed budget variance. (Enter the result as a positive number. Label the variance as favorable (F) or unfavorable (U).) Fixed MOH (12) = budget varlance (13) This variance tells us that Armstrong Foods spent (14) than anticipated on fixed overhead costs. Now determine the formula for the fixed overhead volume variance, then calculate the volume variance. (Enter the result as a positive number. Label the variance as favorable (F) or unfavorable (U).) Fixed MOH (15) (16) = volume variance |(17) This variance tells managers that Armstrong Foods produced (18) originally expected cases of frozen organic fruits than 1: More Info The company allocates manufacturing overhead based on direct labor hours. Armstrong has budgeted fixed manufacturing overhead for the year to be $627.000. The predetermined fixed manufacturing overhead rate is $16.80 per direct labor hour, while the standard variable manufacturing overhead is $0.65 per direct labor hour. The direct labor standard for each case is one - quarter (0.25) of an hour. w The company actually processed 152,000 cases of frozen organic fruits during the year and incurred $684.000 of manufacturing overhead. Of this amount, $642,000 was fixed. The company also incurred a total of 42,000 direct labor hours 2: Requirements 1. How much variable overhead would have been allocated to production? How much fixed overhead would have been allocated to production? 2. Compute the variable MOH rate variance and the variable MOH efficiency varlance. What do these variances tell managers? 3. Compute the fixed MOH budget varlance and the fixed overhead volume varlance. What do these varlances tell managers? 3. Definition manufacturing overhead (1) Standard hours allowed Standard rate Actual hours Actual quantity purchased C) Actual rate (2) Standard hours allowed Standard rate ( Actual hours Actual quantity purchased Actual rate (3) D Standard hours allowed Standard rate (4) O (5) less mare Actual hours Actual quantity purchased O Actual rate KDU (6) 00 Standard hours allowed Standard rate Actual hours Actual quantity purchased Actual rate 0 0 0 0 0 0 0 0 OO U Standard hours allowed Standard rate Actual hours Actual quantity purchased Actual rate (8) Standard hours allowed Standard rate (9) (10) loss more 0000 Actual hours Actual quantity purchased Actual rate 000 (11) O Actual fixed overhead O Budgeted fixed overhead O Standard hours allowed Standard quantity allowed Standard rate 0 Std. fixed overhead cost allocated to production (12) (13) Actual fixed overhead Budgeted fixed overhead Standard hours allowed O Standard quantity allowed D Standard rate Std. fixed overhead cost allocated to production DU (14) O less d more (15) O O Actual fixed overhead O Budgeted fixed overhead O Standard hours allowed O Standard quantity allowed Standard rate Std. fixed overhead cost allocated to production (16) 0 Actual fixed overhead Budgeted fixed overhead Standard hours allowed Standard quantity allowed O Standard rate 0 Std. fixed overhead cost allocated to production (17) 0 CU (18) O more less