Exercise 17-20 (Algo) Prorating Variable Overhead Cost Variances (LO 17-1) Volte Corporation produces small electric appliances....
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66463cba8f86c_09866463cba89fcd.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66463cbad133f_09866463cbacb9f0.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66463cbb2d1a5_09966463cbb23bf8.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66463cbbd1a43_09966463cbbc8ecc.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66463cbc33351_10066463cbc2a456.jpg)
Transcribed Image Text:
Exercise 17-20 (Algo) Prorating Variable Overhead Cost Variances (LO 17-1) Volte Corporation produces small electric appliances. The following information is available for the most recent period of operations: Standard variable overhead rate Actual output Actual direct labor-hours used. Standard direct labor-hours Actual direct labor cost incurred Standard direct labor-hour rate Actual variable overhead incurred Actual units sold $2.75 per direct labor-hour 25,750 units 35,000 1.5 per unit $ 869,000 $ 32 $ 105,000 20,700 units Volte never has any work-in-process inventories and began the year with no finished goods inventory. Required: a. and b. What was the variable overhead price variance and the variable overhead efficiency variance for the period? c. Assume that Volte writes off all variances to Cost of Goods Sold. Prepare the entries Volte would make to record and close out the variances. d. Assume that Volte prorates all variances to appropriate accounts. Prepare the entries Volte would make to record and close out the variances. Complete this question by entering your answers in the tabs below. Req A and B Req C Req D What was the variable overhead price variance and the variable overhead efficiency variance for the period? Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Variable overhead price variance Variable overhead efficiency variance Req A and B Req C> Assume that Volte writes off all variances to Cost of Goods Sold. Prepare the entries Volte would make to record and close out the variances. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < A B Record the purchase and use of variable overhead resources at an actual cost of $105,000 and the transfer to work in process at a standard cost of $2.75 per direct labor-hour. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal Req A and B Req C Req D Assume that Volte writes off all variances to Cost of Goods Sold. Prepare the entries Volte would make to record and close out variances. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < A Record the closure of variable overhead cost variances to Cost of Goods Sold. Note: Enter debits before credits. Event 2 General Journal Debit Credit Clear entry View general journal Record entry Req A and B Req C Req D Assume that Volte prorates all variances to appropriate accounts. Prepare the entries Volte would make to record variances. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < A B Record the purchase and use of variable overhead resources at an actual cost of $105,000 and the transfer to work in process at a standard cost of $2.75 per direct labor-hour. Note: Enter debits before credits. Event General Journal Debit Credit + Record entry Clear entry View general journal Req A and B Req C Req D Assume that Volte prorates all variances to appropriate accounts. Prepare the entries Volte would make to record and clo variances. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < A B B Record the closure of variable overhead cost variances. Note: Enter debits before credits. Event 2 General Journal Debit Credit Record entry Clear entry View general journal Exercise 17-20 (Algo) Prorating Variable Overhead Cost Variances (LO 17-1) Volte Corporation produces small electric appliances. The following information is available for the most recent period of operations: Standard variable overhead rate Actual output Actual direct labor-hours used. Standard direct labor-hours Actual direct labor cost incurred Standard direct labor-hour rate Actual variable overhead incurred Actual units sold $2.75 per direct labor-hour 25,750 units 35,000 1.5 per unit $ 869,000 $ 32 $ 105,000 20,700 units Volte never has any work-in-process inventories and began the year with no finished goods inventory. Required: a. and b. What was the variable overhead price variance and the variable overhead efficiency variance for the period? c. Assume that Volte writes off all variances to Cost of Goods Sold. Prepare the entries Volte would make to record and close out the variances. d. Assume that Volte prorates all variances to appropriate accounts. Prepare the entries Volte would make to record and close out the variances. Complete this question by entering your answers in the tabs below. Req A and B Req C Req D What was the variable overhead price variance and the variable overhead efficiency variance for the period? Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Variable overhead price variance Variable overhead efficiency variance Req A and B Req C> Assume that Volte writes off all variances to Cost of Goods Sold. Prepare the entries Volte would make to record and close out the variances. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < A B Record the purchase and use of variable overhead resources at an actual cost of $105,000 and the transfer to work in process at a standard cost of $2.75 per direct labor-hour. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal Req A and B Req C Req D Assume that Volte writes off all variances to Cost of Goods Sold. Prepare the entries Volte would make to record and close out variances. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < A Record the closure of variable overhead cost variances to Cost of Goods Sold. Note: Enter debits before credits. Event 2 General Journal Debit Credit Clear entry View general journal Record entry Req A and B Req C Req D Assume that Volte prorates all variances to appropriate accounts. Prepare the entries Volte would make to record variances. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < A B Record the purchase and use of variable overhead resources at an actual cost of $105,000 and the transfer to work in process at a standard cost of $2.75 per direct labor-hour. Note: Enter debits before credits. Event General Journal Debit Credit + Record entry Clear entry View general journal Req A and B Req C Req D Assume that Volte prorates all variances to appropriate accounts. Prepare the entries Volte would make to record and clo variances. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < A B B Record the closure of variable overhead cost variances. Note: Enter debits before credits. Event 2 General Journal Debit Credit Record entry Clear entry View general journal
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Goods and services as ______ or differentiated. Question 6 options: Costly Homogeneous Sensitive Question 7 (1 point) Revenue control is clearly an important goal of ______ control. Question 7...
-
Identify which party is responsible for reporting directly to the FDA the investigator's financial interests with the sponsor: The sponsor The investigator The IRB The investigator's institution
-
The following information is available from the current period financial statements: Net income Depreciation expense Increase in accounts receivable Decrease in accounts payable $175,000 28,000...
-
The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.20 per share on January 1, 2014. The remaining 20 percent of Devines shares also traded...
-
Assume that personal investors pay a 40% tax rate on interest income and only a 20% tax rate on equity income. If the corporate tax rate is 30%, estimate whether debt has a tax benefit, relative to...
-
Create a program that displays four shapes in split panes, as shown in Figure 31.57a. Exercise31 19 - (a)
-
How does an individual know if all cash transactions have been properly accounted for on the statement of cash flows?
-
Absorption, variable, and throughput costing EnRG Inc. produces trail mix packaged for sale in convenience stores in the Northeast section of the United States. At the beginning of April 2008, EnRG...
-
A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan have a teaser rate of 4%, after that, the rate can reset with a 5%...
-
On January 1, 2022, Wilson Co. leases equipment to Nice Inc. The lease term is 48 months, and the rent payment will be $1,800 per month. Wilson (lessor) classifies it as an operating lease. Wilson...
-
Discuss the activities of each step of the revenue cycle in the order they occur. 1. Describe the work of health information management (HIM) staff members during each step of the revenue cycle in...
-
Wildhorse Oil Company invests $ 1 9 . 0 0 million in an oil reserve estimated to have 2 . 5 0 million barrels of oil and $ 2 . 5 0 million salvage value. During the first year, the company extracted...
-
identify a psychological research study that could be used in a court setting by a forensic psychologist or forensic psychology professional. Review the methods and results sections of this research...
-
Suppose that the current EUR/GBP exchange rate is 0.86 per euro. The current 6-month interest rates are: GBP 4%, EUR 6%. There are three 6-month forward contracts available, with the following...
-
From Politics in the U.S. energy transition: Case studies of solar, wind, biofuels and electric vehicles policy: What are benefits and costs of policies like those discussed in this article? Who can...
-
Suppose that the average P/E multiple in the oil industry is 16. Shell Oil is expected to have an EPS of $4.50 in the coming year. The intrinsic value of Shell Oil stock should be A. $28.12. B....
-
During 2012, Cheng Book Store paid $483,000 for land and built a store in Georgetown. Prior to construction, the city of Georgetown charged Cheng $1,300 for a building permit, which Cheng paid. Cheng...
-
Improved computer security measures create their own set of problems: user antagonism, sluggish response time, and hampered performance. Many professionals believe that the most effective way to...
-
Which of the following is/are methods of reducing fraud losses once fraud has occurred? (There may be more than one right answer.) a. insurance b. regular backup of data and programs c. contingency...
-
Most experts maintain that the computer frauds that are publicly revealed represent only the tip of the iceberg. Although the major threat to computer security is perceived by many to be external,...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App