I only help with Required 3(a)(b)(c) and 4.
EXHIBIT 15.6 General Model: Four-Variance Analysis of Total Factory Overhead Cost Variance (A) (B) (C) (D) Flexible Budget Based on Inputs Standard Overhead Cost Applied Cost Incurred Variable Overhead Actual quantity of the activity for applying variable overhead x Standard variable overhead rate Flexible Budget Based on Outputs Total standard quantity of the activity for applying variable overhead to the output of the period x Standard variable overhead rate Amount spent Variable overhead spending variance Variable overhead efficiency variance Fixed Overhead Total standard quantity of the activity for applying overhead to the output of the period X Standard fixed overhead rate Amount spent Budgeted (lump-sum) amount Fixed overhead spending (budget) variance Production (denominator) volume variance Overhead Information for Cran-Mar Company for October follows: Total factory overhead cost incurred Budgeted fixed factory overhead cost Total standard overhead rate per machine hour (MH) Standard variable factory overhead rate per MH Standard Ms allowed for the units manufactured $30,000 $ 7,125 $ 4.90 $ 3.00 3,600 Required: 1. What is the standard fixed factory overhead rate per machine hour (MH)? 2 What is the denominator activity level that was used to establish the fixed factory overhead application rate? 3. Two-way analysis (breakdown) of the total factory overhead cost varlance: Using panel B in Exhibit 15.7 as a guide, calculate the following factory overhead cost variances for October and indicate whether each variance is favorable (F) or unfavorable (U). a. Total flexible-budget varlance. b. Production volume varlance. c. Total overhead cost varlance. 4. Confirm your answer to 3b above by using the model at the bottom of Exhibit 15.6 to calculate the production volume variance and Indicate whether the variance is favorable (F) or unfavorable (U). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Two-way analysis (breakdown) of the total factory overhead cost variance: Using panel B in Exhibit 15.7 as a guide, calculate the following factory overhead cost variances for October and indicate whether each variance is favorable (F) or unfavorable (U). Unfavorable 2. Total flexible-budget variance b. Production volume variance Total overhead cost variance Unfavorable Unfavorable C Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Confirm your answer to 3b above by using the model at the bottom of Exhibit 15.6 to calculate the production volume variance and indicate whether the variance is favorable (F) or unfavorable (U). Production volume variance Unfavorable Required 3 Required 4 EXHIBIT 15.7 Schmidt Machinery Company, Factory Overhead Variance Analyses, October 2019 Panel 1: Four-Variance Analysis Standard Cost Flexible Budget Flexible Budget Applied to Actual Based on inputs Based on Outputs Production ( ). (AQ X SPI 150 X SP) SOX SP Variable (3,510 x $11.5755) (3,510 x $12.00 (3,900 x $12.00) (3.900 x $12.00) Overhead $40,630 = $42,120 $46,800 $46,800 Spending Efficiency NA variance = $1,490F variance = $4,680F Total variable overhead cost variance $6,170F Fixed 13,900 $24.00) Overhead $130,650 $120,000 $120,000 $93,600 Spending NA Production volume variance $10,650U variance = $26,400U Total fixed overhead cost variance $37,050U Total Total overhead cost variance = $30,880U lle, under applied overhead = $30,880U) Panel 2: Three-Variance Analysis Flexible Budget Based on inputs Actual Standard Cost Applied to Production Flexible Budget Based on Outputs $ 46,800 $ 40,630 $ 42,120 Variable Overhead Fixed Overhead $130.650 $171,280 $120,000 $162,120 $120,000 $166,800 3,900 hours X $35.00/hr $140,400 Total Spending variance = $9,1600 Production volume variance = $26,400U Efficiency variance = $4,680F Total overhead cost variance = $30,880U de.. under applied overhead = $30,880U) Panel 3: Two-Variance Analysis Flexible Budget Based on inputs Actual Standard Cost Applied to Production Flexible Budget Based on Outputs Variable Overhead $ 40,630 $ 46,800 Fixed Overhead $130.650 $171,280 3,900 hours $36.00/hr. $140,400 Total $120,000 $166,800 Flexible-budget variance = $4,4800 Total overhead cost variance = $30,880U fi.e. under applied overhead = $30,880U) Production volume variance - $26,400U
