Question
Hello, Please help so I can learn and understand this problem. Thank you! The Stanton Supply Company produces cleaning equipment for professional cleaners. At the
Hello,
Please help so I can learn and understand this problem. Thank you!
The Stanton Supply Company produces cleaning equipment for professional cleaners. At the start of the year, Stanton estimated variable overhead costs to be $13 per unit and total fixed overhead costs at $301,000, based on a volume of 66,000 units. The detail for the overhead estimates follows:
Variable Overhead | ||||
Indirect material ($8) | $ | 528,000 | ||
Utilities ($2) | 132,000 | |||
Maintenance ($3) | 198,000 | |||
Total variable overhead | $ | 858,000 | ||
Fixed Overhead | ||||
Supervisor salaries | $ | 126,000 | ||
Depreciation | 150,000 | |||
Other fixed overhead | 25,000 | |||
Total fixed overhead | $ | 301,000 | ||
Total overhead costs | $ | 1,159,000 |
Actual costs for the year are as follows:
Actual Production | 56,000 | units | |||
Variable Overhead | |||||
Indirect material | $ | 468,500 | |||
Utilities | 95,000 | ||||
Maintenance | 170,000 | ||||
Total variable overhead | $ | 733,500 | |||
Fixed Overhead | |||||
Supervisor salaries | $ | 127,000 | |||
Depreciation | 145,000 | ||||
Other fixed overhead | 26,700 | ||||
Total fixed overhead | $ | 298,700 | |||
Total overhead costs | $ | 1,032,200 |
(a1) Calculate the controllable overhead variances for variable and fixed overhead. (Enter all variances as a positive number.)
Stanton Supply Company Actual Units Produced (56,000) | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|
Variable Overhead | Actual | Flex Budget | Variance | |||||||
Indirect material | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | select an option UnfavorableNeither Unfavorable nor FavorableFavorable | ||||||
Utilities | enter a dollar amount | enter a dollar amount | enter a dollar amount | select an option UnfavorableFavorableNeither Unfavorable nor Favorable | ||||||
Maintenance | enter a dollar amount | enter a dollar amount | enter a dollar amount | select an option Neither Unfavorable nor FavorableFavorableUnfavorable | ||||||
Total variable overhead | enter a total amount | enter a total amount | enter a total amount | select an option FavorableNeither Unfavorable nor FavorableUnfavorable | ||||||
Fixed Overhead | ||||||||||
Supervisor salaries | enter a dollar amount | enter a dollar amount | enter a dollar amount | select an option FavorableUnfavorableNeither Unfavorable nor Favorable | ||||||
Depreciation | enter a dollar amount | enter a dollar amount | enter a dollar amount | select an option Neither Unfavorable nor FavorableFavorableUnfavorable | ||||||
Other fixed overhead | enter a dollar amount | enter a dollar amount | enter a dollar amount | select an option UnfavorableNeither Unfavorable nor FavorableFavorable | ||||||
Total fixed overhead | enter a total amount | enter a total amount | enter a total amount | select an option FavorableUnfavorableNeither Unfavorable nor Favorable | ||||||
Total Overhead costs | $enter a total amount for this statement | $enter a total amount for this statement | $enter a total amount for this statement | enter a total amount for this statement Neither Unfavorable nor FavorableUnfavorableFavorable |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started