Homework:Ch. 10 MyAcctgLab Assignment

Question 3, E10-34A (similar to)

Part 1 of 6

HW Score: 55.8%, 1.67 of 3 points

Points: 0 of 1

Save

Question content area top

Part 1

Ceramics Etc.

is a manufacturer of ceramic bottles.

LOADING...

(Click the icon to view the standards.)

LOADING...

(Click the icon to view the actual results.)

Requirements

1. Compute the total manufacturing overhead variance. What does this tell management?

2. Compute the overhead flexible budget variance. What does this tell management?

3. Compute the production volume variance. What does this tell management?

Question content area bottom

Part 1

Requirement 1. Compute the total manufacturing overhead variance. What does this tell management?

Identify the formula labels and compute the total manufacturing overhead variance. (Enter the result as a positive number. Label the variance as favourable (F) or unfavourable (U).)

Total overhead variance:
Total overhead variance

Help me solve thisCalculatorAsk my instructor

Clear all

Check answer

pop-up content starts

Data table

The company has these standards:

Direct materials (clay). . . . . . . . . . . . . . . . .	1 kg per bottle, at a cost of $0.42 per kg
Direct labour. . . . . . . . . . . . . . . . . . . . . . . . .	1/5 hour per bottle, at a cost of $14.60 per hour
Static budget variable overhead. . . . . . . . .	$70,000
Static budget fixed overhead. . . . . . . . . . . .	$30,000
Static budget direct labour hours. . . . . . . . .	10,000 hours
Static budget number of bottles. . . . . . . . . .	45,000

Ceramics Etc.

allocates manufacturing overhead to production based on standard direct labour hours. pop-up content ends

PrintDone

pop-up content starts

Data table

Last month,

Ceramics Etc.

reported the following actual results for the production of

67,000

bottles:

Direct materials. . . . . . . . . . . . . . . . .	1.1 kg per bottle, at a cost of $0.50 per kg
Direct labour. . . . . . . . . . . . . . . . . . . . . .	1/4 hour per bottle, at a cost of $13.40 per hour
Actual variable overhead. . . . . . . . . . . .	$104,000
Actual fixed overhead. . . . . . . . . . . . . . .	$28,000