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Alden Company uses a three$-$variance analysis for factory overhead variances.

Practical capacity is defined as $32$ setups and $32,000$ machine hours to manufacture

$8,000$ units for the year. Selected data for $2022$ follow:

Budgeted fixed factory overhead:

Setup cost

Other

Total factory overhead cost incurred

Variable factory overhead rate:

Per setup

Per machine hour

Total standard machine hours allowed for the units manufactured

Machine hours actually worked

Actual total number of setups

Actual number of units produced during the year

Standard number of setups for units produced during the year

Required:

Compute $($a$)$ the total overhead spending variance, $($b$)$ the overhead efficiency

variance, and $($c$)$ the total overhead flexible budget variance for $2022.$ Label each

variance as favorable $($F$)$ or unfavorable $($U$).$

Assume that the company includes all setup costs as variable factory overhead. The

budgeted total fixed overhead, therefore, is $$176,000,$ and the standard variable

overhead rate per setup is $$4,350.$ What are $($a$)$ the total overhead spending variance,

$($b$)$ the overhead efficiency variance, and $($c$)$ the total overhead flexible budget

variance for the year? Label each variance as favorable $(F)$ or unfavorable $($U$).$

Assume that the company uses only machine hours as the activity measure to apply

both variable and fixed overhead, and that it includes all setup costs as variable

factory overhead. What are $($a$)$ the Total Overhead Spending Variance, $($b$)$ the

Overhead Efficiency Variance, and $($c$)$ the total Overhead Flexible Budget Variance for

the year? Indicate whether each variance is favorable $($F$)$ or unfavorable $($U$).$

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Compute $($a$)$ the total overhead spending variance, $($b$)$ the overhead efficiency variance, ar

budget variance for $2022.$ Label each variance as favorable $($F$)$ or unfavorable $($U$).$

$($c$)$ Flexible$-$budget variance Alden Company uses a three$-$variance analysis for factory overhead variances.

Practical capacity is defined as $32$ setups and $32,000$ machine hours to manufacture

$8,000$ units for the year. Selected data for $2022$ follow:

Budgeted fixed factory overhead:

Setup cost

Other

Total factory overhead cost incurred

Variable factory overhead rate:

Per setup

Per machine hour

Total standard machine hours allowed for the units manufactured

Machine hours actually worked

Actual total number of setups

Actual number of units produced during the year

Standard number of setups for units produced during the year

Required:

Compute $($a$)$ the total overhead spending variance, $($b$)$ the overhead efficiency

variance, and $($c$)$ the total overhead flexible budget variance for $2022.$ Label each

variance as favorable $($F$)$ or unfavorable $($U$).$

Assume that the company includes all setup costs as variable factory overhead. The

budgeted total fixed overhead, therefore, is $$176,000,$ and the standard variable

overhead rate per setup is $$4,350.$ What are $($a$)$ the total overhead spending variance,

$($b$)$ the overhead efficiency variance, and $($c$)$ the total

Skipped

Item $5$

Alden Company uses a three$-$variance analysis for factory overhead variances. Practical capacity is defined as $32$ setups and $32,000$ machine hours to manufacture $8,000$ units for the year. Selected data for $2022$ follow:

Budgeted fixed factory overhead:

Setup cost $ $120,000$

Other $176,000$ $ $296,000$

Total factory overhead cost incurred $ $495,000$

Variable factory overhead rate:

Per setup $ $600$

Per machine hour $ $5\mathrm{.}00$

Total standard machine hours allowed for the units manufactured $24,000$ hours

Machine hours actually worked $27,500$ hours

Actual total number of setups $28$

Actual number of units produced during the year $6,000$

Standard number of setups for units produced during the year $24$

Required:

$1.$ Compute $($a$)$ the total overhead spending variance, $($b$)$ the overhead efficiency variance, and $($c$)$ the total overhead flexible budget variance for $2022.$ Label each variance as favorable $($F$)$ or unfavorable $($U$).$

$2.$ Assume that the company includes all setup costs as variable factory overhead. The budgeted total fixed overhead, therefore, is $$176,000,$ and the standard variable overhead rate per setup is $$4,350.$ What are $($a$)$ the total overhead spending variance, $($b$)$ the overhead efficiency variance, and $($c$)$ the total overhead flexible budget variance for the year? Label each variance as favorable $($F$)$ or unfavorable $($U$).$

$3.$ Assume that the company uses only machine hours as the activity measure to apply both variable and fixed overhead, and that it includes all setup costs as variable factory overhead. What are $($a$)$ the Total Overhead Spending Variance, $($b$)$ the Overhead Efficiency Variance, and $($c$)$ the total Overhead Flexible Budget Variance for the year? Indicate whether each variance is favorable $($F$)$ or unfavorable