Question
Exercise 11-26 Exercise 11-26 Straightforward Computation of Overhead Variances The following data are the actual results for Marvelous Marshmallow Company for October. Actual output .................................................................................................................................
Exercise 11-26 Exercise 11-26 Straightforward Computation of Overhead Variances
The following data are the actual results for Marvelous Marshmallow Company for October.
Actual output ................................................................................................................................. 9000 cases
Actual variable overhead ................................................................................................................ $405,000
Actual fixed overhead ..................................................................................................................... $122,000
Actual machine time ...................................................................................................................... 40500machine hours
(LO 5) The following data are the actual results for Marvelous Marshmallow Company for October.
Standard variable-overhead rate .................................................................................... $9.00 per machine hour
Standard quantity of machine hours ............................................................................... 4 hours per case of marshmallows
Budgeted fixed overhead ............................................................................................... $120,000 per month
Budgeted output ........................................................................................................... 10,000 cases per month
Required: 1. Use any of the methods explained in the chapter to compute the following variances. Indicate whether each variance is favorable or unfavorable, where appropriate.
a. Variable-overhead spending variance.
b. Variable-overhead efficiency variance.
c. Fixed-overhead budget variance.
d. Fixed-overhead volume variance.
2. Build a spreadsheet: Construct an Excel spreadsheet to solve the preceding requirement. Show how the solution will change if the following information changes: actual output was 9,100 cases, and actual variable overhead was $395,000.
I only need the second requirement, I will double the money with the tip feature only if you answer is acceptable, (timely, correct, and original).
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