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I just need help with the FOH cost variance and FOH volume variance. Thank you SmartSound manufactures headphone cases. During September 2018, the company produced
I just need help with the FOH cost variance and FOH volume variance. Thank you
SmartSound manufactures headphone cases. During September 2018, the company produced and sold 107,000 cases and recorded the following cost data EEB (Click the icon to view the cost data.) Read the requirements Data Table Requirement 1. Compute the c Begin with the cost variances. S favorable (F) or unfavorable (U) whether each variance is st: SQ standard quantity.) Standard Cost Information Quantity Cost Direct materials cost variance Direct Materials Direct Labor Variable Manufacturing Overhead 2 parts $ 0.16 per part 9.00 per hour 0.02 hours 10.00 per hour Direct labor cost variance 0.02 hours Fixed Manufacturing Overhead ($32,980 for static budget volume of 97,000 units and 1,940 hours, or $17 per hour) Actual Cost Information Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead (211,000 parts S 0.21 per part) 44,310 (1,640 hours S 9.15 per hour)15,006 15,000 25,000 Choose from any list or enter a parts Next compute the efficiency variances. Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost AQ actual quantity; FOH = fixed overhead, SC = standard cost SQ = standard quantity.) Formula (AQ - SQ) x SC (AQ - SQ) x SC Variance Direct materials efficiency variance- Direct labor efficiency variance Requirement 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume vaiances Now compute the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost AQ = actual quantity: FOH = fixed overhead, SC = standard cost, SQ = standard quantity: VOH = variable overhead.) Formula (AC - SC) x AQ (AQ - SQ) x SC Variance VOH cost variance VOH efficiency variance Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC actual cost AQ = actual quantity; FOH fixed overhead; SC standard cost; SQstandard quantity.) Formula Actual FOH - Budgeted FOH Budgeted FOH - Allocated FOhH Variance FOH cost variance FOH volume varianceStep by Step Solution
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