i Requirements 1. Calculate the total manufacturing overhead variance. What does this tell managers? 2. Determine the overhead flexible budget variance. Determine the three separate variances that are involved in the flexible budget variance (the variable overhead spending and efficiency variances plus the fixed overhead budget variance). What does this tell managers? 3. Determine the production volume variance. What does this tell managers? 4. Double check: Do the two variances (computed in Requirements 2 and 3) sum to the total overhead variance computed in Requirement 1? Print Done McCain supplies restaurants with many premanufactured ingredients (such as bags of frozen french fries). Assume that the McCain french fries manufacturing facility actually incurred $2,850,000 of manufacturing overhead for the year ($1,650,000 variable overhead and $1,200,000 fixed overhead). Based on the actual output of french fries, the flexible budget indicated that total manufacturing overhead should have been $2,982,800. Using a standard costing system, the company allocated $3,055.000 of manufacturing overhead to production ($2,840,000 variable overhead and $215.000 fixed overhead). The actual machine hours during the year were 270.000, which was 14,000 hours less than the standard. McCain's managers had estimated 288,000 hours when they created the budget. Manufacturing overhead is allocated based on machine hours. Requirements Identify the formula labels, and calculate the variable overhead spending variance. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Variable overhead spending variance: Actual variable overhead 1.650.000 Flexible budget variable overhead Variable overhead spending variance This variance implies that McCain spent because it had a favourable variable overhead rate. Identify the formula labels, and calculate the variable overhead efficiency variance. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Variable overhead efficiency variance Standard overhead rate Actual machine hours Standard machine hours) = This variance implies that McCain was $ efficient with ils variable overhead since it used V hours and the rate is per hour. Identify the formula labels, and calculate the fixed overhead budget variance. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Fixed overhead budget variance: Actual fixed overhead 1,200,000 Budgeted fixed overhead Fixed overhead budget variance McCain supplies restaurants with many premanufactured ingredients (such as bags of frozen french fries). Assume that the McCain french fries manufacturing facility actually incurred $2,850,000 of manufacturing overhead for the year (S1,650,000 variable overhead and $1,200,000 fixed overhead). Based on the actual output of french fries, the flexible budget indicated that total manufacturing overhead should have been $2,982,800. Using a standard costing system, the company allocated $3,055,000 of manufacturing overhead to production ($2.840,000 variable overhead and $215,000 fixed overhead). The actual machine hours during the year were 270,000, which was 14,000 hours less than the standard. McCain's managers had estimated 288,000 hours when they created the budget. Manufacturing overhead is allocated based on machine hours. Requirements Como o CORDURO Room Identify the formula labels, and calculate the fixed overhead budget variance. (Do not round Intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Fixed overhead budget variance: Actual fixed overhead 1,200,000 Budgeted fixed overhead Fixed overhead budget variance This implies that McCain used more fixed overhead than it originally budgeted for. 3. Determine the production volume variance. What does this tell managers? Identify the formula labels, and calculate the production volume variance. Production volume varlance: Flexible budget overhead for actual outputs 2,982,000 Standard overhead allocated to production Production volume variance This variance tells managers McCain used i plant capacity more efficiently than originally anticipated. 4. Double check: Do the two variances (computed in Requirements 2 and 3) sum to the total overhead variance computed in Requirement 1? O Yes O No i Requirements 1. Calculate the total manufacturing overhead variance. What does this tell managers? 2. Determine the overhead flexible budget variance. Determine the three separate variances that are involved in the flexible budget variance (the variable overhead spending and efficiency variances plus the fixed overhead budget variance). What does this tell managers? 3. Determine the production volume variance. What does this tell managers? 4. Double check: Do the two variances (computed in Requirements 2 and 3) sum to the total overhead variance computed in Requirement 1? Print Done McCain supplies restaurants with many premanufactured ingredients (such as bags of frozen french fries). Assume that the McCain french fries manufacturing facility actually incurred $2,850,000 of manufacturing overhead for the year ($1,650,000 variable overhead and $1,200,000 fixed overhead). Based on the actual output of french fries, the flexible budget indicated that total manufacturing overhead should have been $2,982,800. Using a standard costing system, the company allocated $3,055.000 of manufacturing overhead to production ($2,840,000 variable overhead and $215.000 fixed overhead). The actual machine hours during the year were 270.000, which was 14,000 hours less than the standard. McCain's managers had estimated 288,000 hours when they created the budget. Manufacturing overhead is allocated based on machine hours. Requirements Identify the formula labels, and calculate the variable overhead spending variance. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Variable overhead spending variance: Actual variable overhead 1.650.000 Flexible budget variable overhead Variable overhead spending variance This variance implies that McCain spent because it had a favourable variable overhead rate. Identify the formula labels, and calculate the variable overhead efficiency variance. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Variable overhead efficiency variance Standard overhead rate Actual machine hours Standard machine hours) = This variance implies that McCain was $ efficient with ils variable overhead since it used V hours and the rate is per hour. Identify the formula labels, and calculate the fixed overhead budget variance. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Fixed overhead budget variance: Actual fixed overhead 1,200,000 Budgeted fixed overhead Fixed overhead budget variance McCain supplies restaurants with many premanufactured ingredients (such as bags of frozen french fries). Assume that the McCain french fries manufacturing facility actually incurred $2,850,000 of manufacturing overhead for the year (S1,650,000 variable overhead and $1,200,000 fixed overhead). Based on the actual output of french fries, the flexible budget indicated that total manufacturing overhead should have been $2,982,800. Using a standard costing system, the company allocated $3,055,000 of manufacturing overhead to production ($2.840,000 variable overhead and $215,000 fixed overhead). The actual machine hours during the year were 270,000, which was 14,000 hours less than the standard. McCain's managers had estimated 288,000 hours when they created the budget. Manufacturing overhead is allocated based on machine hours. Requirements Como o CORDURO Room Identify the formula labels, and calculate the fixed overhead budget variance. (Do not round Intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Fixed overhead budget variance: Actual fixed overhead 1,200,000 Budgeted fixed overhead Fixed overhead budget variance This implies that McCain used more fixed overhead than it originally budgeted for. 3. Determine the production volume variance. What does this tell managers? Identify the formula labels, and calculate the production volume variance. Production volume varlance: Flexible budget overhead for actual outputs 2,982,000 Standard overhead allocated to production Production volume variance This variance tells managers McCain used i plant capacity more efficiently than originally anticipated. 4. Double check: Do the two variances (computed in Requirements 2 and 3) sum to the total overhead variance computed in Requirement 1? O Yes O No