MEDICAL MOLDED PRODUCTS INC. Factory Overhead Cost Variance Report Trim Department For the Month Ended March 31, 2012 Productive capacity for the month: Actual productive capacity used for the month: hours hours Budget (at actual production) Variances Favorable Unfavorable Actual Variable factory overhead costs: Indirect factory labor Power and light Indirect materials Total Fixed factory overhead costs: Supervisory salaries Depreciation of plant and equip. Insurance and property taxes Total Total factory overhead cost Total controllable variances Fixed Factory OH Rate Net controllable variance(favorable) unfavorable Idle Hours Volume variance(fav.) unfav. Total factory overhead cost varianceX(favorable) unfavorable ARernative Computation of Overhead Variances: Factory Overhead Applied costs Actual costs Balance Actual Factory Overhead Applied Factory Overhead Budgeted Factory Overhead for Amount Produced Variable cost Fixed cost Total Controllable Volume Variance Variance Total Factory Overhead Cost Variance Supporting calculation: Variable factory overhead rate: Budgeted total variable cost Budgeted hours Variable factory overhead rate Fixed factory overhead rate: Total fixed costs Productive capacity hours Fixed factory overhead rate Total Actual hours 1 of 2 a $11,750 F EX 23-17 Factory overhead cost variances Casual Comfort Textiles Corporation began January with a budget for 30,000 hours of production in the Weaving Department. The department has a full capacity of 10.000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of January was as follows: Variable overhead $124.500 Foed overhead $186.500 Total The actual factory overhead was $178.900 for January. The actual fixed factory over head was as budgeted. During January, the Weaving Department had standard hours at actual production volume of 31,000 hours. a. Determine the variable factory overhead controllable variance b. Determine the fixed factory overhead volume variance EX 23-18 Factory overhead variance corrections The data related to Elite Sporting Goods Company's factory overhead cost for the produc tion of 50,000 units of product are as follows: Actual Variable factory overhead $218.900 Fixed factory overhead 157.500 Standard 76,000 hrs at $5.00 52.90 for variable factory overhead 380.000 Productive capacity at 100% of normal was 75.000 hours, and the factory overhead cost budgeted at the level of 76,000 standard hours was $377.900. Based on these data the chief cost accountant prepared the following variance analysis Variable factory overhead controllable variance Actual variable factory overhead cost incurred 521 900 Budgeted variable factory overhead for 76.000 hours 220.400 Variance favorable -$1.500 Fixed factory overhead volume variance Normal productive capacity at 100% 75 000 hrs Standard for amount produced 76,000 Productive capacity not used 1000 hrs Standard variable factory overhead rate X $5.00 Variance unfavorable Total factory overhead cost variance unfavorable $3.500 Identify the errors in the factory overhead cost variance analysis. Sooo OBJ. 4 Net controllable variance, $250 F EX 23-19 Factory overhead cost variance report Medical Molded Products Inc. prepared the following factory overhead cost budget for the Trim Department for March 2012. during which it expected to use 10.000 hours for production: $29,000 7.500 13.000 $49.500 Variable overhead cost Indirect factory labor Power and light Indirect materials Total variable cost Fixed overhead cost Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Totalfixed cost Total factory overhead cost $34.100 24.800 22.100 81000 1090 Chapter 23 Performance Evaluation Using Variances from Standard Coses Medical Molded Products hav e 15.000 hours of monthly productive capacity in the Trim Department under normal business conditions. During March the Trim Depart ment actually used 11000 hours for production. The actual food costs were as budgeted The actual variable overhead for Manch w as fobs Actual actory overhead cost Indirect actory bor Power and light Indirect Total cost $31.100 8.100 15.000 Construct a factory overhead cost variance report for the Trim Department for March EX 23-20 Recording standards in accounts Gemini Manufacturing Company incorporate standards in ons and identifies var ances at the time the manufacturing costs are curred. Joumalize the entries to record the following transactions: Purchased 1.700 units of copper ting on account at 6 0 per unit. The standard price is $65.00 per unit. Used 1.000 units of copper tubing in the process of manufacturing 110 air conditioners Eight units of copper tubing are required at standard, to produce one air conditioner EX 23-21 Recording standards in accounts The Assembly Department produced 2.000 units of product during June. Each unit required 175 standard direct labor hours. There were 3.500 actual hours used in the Assembly Department during June at a cual rate of $1460 per hour. The standard direct labor mate is $15 per hour. Assuming director for month is paid on the fifth day of the following month Journaline the direct labor in the Assembly Department on June 30. OBS Income before income tax. 561.200 EX 23-22 Income statement indicating standard cost variances The following data were taken from the records of Gentry Company for December 2012 572.000 Administrative expenses Cost of goods sold standard Det er Direct labor e Direct bortime n t Vectory on corteve Feed factory overhead volume de b e interest expense 2.200 620.000 Selling expenses Prepare an income statement for presentation to management EX 23-23 Nonfinancial performance measures Ace, Incis an internet retailer o f equipment Customers onder golf equipment from the company, using an online catalog The company processes the orders and deliver the requested product from its w hose. The company wants to provide customers with an excellent purchase experience in order to expand the business through favorable word-ofmouth advertising and to drive repeat business To help monitor performance the company developed a set of performance measures for its order placement and de livery proces ARernative Computation of Overhead Variances: Factory Overhead Applied costs Actual costs Balance Actual Factory Overhead Applied Factory Overhead Budgeted Factory Overhead for Amount Produced Variable cost Fixed cost Total Controllable Volume Variance Variance Total Factory Overhead Cost Variance Supporting calculation: Variable factory overhead rate: Budgeted total variable cost Budgeted hours Variable factory overhead rate Fixed factory overhead rate: Total fixed costs Productive capacity hours Fixed factory overhead rate Total Actual hours 1 of 2 a $11,750 F EX 23-17 Factory overhead cost variances Casual Comfort Textiles Corporation began January with a budget for 30,000 hours of production in the Weaving Department. The department has a full capacity of 10.000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of January was as follows: Variable overhead $124.500 Foed overhead $186.500 Total The actual factory overhead was $178.900 for January. The actual fixed factory over head was as budgeted. During January, the Weaving Department had standard hours at actual production volume of 31,000 hours. a. Determine the variable factory overhead controllable variance b. Determine the fixed factory overhead volume variance EX 23-18 Factory overhead variance corrections The data related to Elite Sporting Goods Company's factory overhead cost for the produc tion of 50,000 units of product are as follows: Actual Variable factory overhead $218.900 Fixed factory overhead 157.500 Standard 76,000 hrs at $5.00 52.90 for variable factory overhead 380.000 Productive capacity at 100% of normal was 75.000 hours, and the factory overhead cost budgeted at the level of 76,000 standard hours was $377.900. Based on these data the chief cost accountant prepared the following variance analysis Variable factory overhead controllable variance Actual variable factory overhead cost incurred 521 900 Budgeted variable factory overhead for 76.000 hours 220.400 Variance favorable -$1.500 Fixed factory overhead volume variance Normal productive capacity at 100% 75 000 hrs Standard for amount produced 76,000 Productive capacity not used 1000 hrs Standard variable factory overhead rate X $5.00 Variance unfavorable Total factory overhead cost variance unfavorable $3.500 Identify the errors in the factory overhead cost variance analysis. Sooo OBJ. 4 Net controllable variance, $250 F EX 23-19 Factory overhead cost variance report Medical Molded Products Inc. prepared the following factory overhead cost budget for the Trim Department for March 2012. during which it expected to use 10.000 hours for production: $29,000 7.500 13.000 $49.500 Variable overhead cost Indirect factory labor Power and light Indirect materials Total variable cost Fixed overhead cost Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Totalfixed cost Total factory overhead cost $34.100 24.800 22.100 81000 1090 Chapter 23 Performance Evaluation Using Variances from Standard Coses Medical Molded Products hav e 15.000 hours of monthly productive capacity in the Trim Department under normal business conditions. During March the Trim Depart ment actually used 11000 hours for production. The actual food costs were as budgeted The actual variable overhead for Manch w as fobs Actual actory overhead cost Indirect actory bor Power and light Indirect Total cost $31.100 8.100 15.000 Construct a factory overhead cost variance report for the Trim Department for March EX 23-20 Recording standards in accounts Gemini Manufacturing Company incorporate standards in ons and identifies var ances at the time the manufacturing costs are curred. Joumalize the entries to record the following transactions: Purchased 1.700 units of copper ting on account at 6 0 per unit. The standard price is $65.00 per unit. Used 1.000 units of copper tubing in the process of manufacturing 110 air conditioners Eight units of copper tubing are required at standard, to produce one air conditioner EX 23-21 Recording standards in accounts The Assembly Department produced 2.000 units of product during June. Each unit required 175 standard direct labor hours. There were 3.500 actual hours used in the Assembly Department during June at a cual rate of $1460 per hour. The standard direct labor mate is $15 per hour. Assuming director for month is paid on the fifth day of the following month Journaline the direct labor in the Assembly Department on June 30. OBS Income before income tax. 561.200 EX 23-22 Income statement indicating standard cost variances The following data were taken from the records of Gentry Company for December 2012 572.000 Administrative expenses Cost of goods sold standard Det er Direct labor e Direct bortime n t Vectory on corteve Feed factory overhead volume de b e interest expense 2.200 620.000 Selling expenses Prepare an income statement for presentation to management EX 23-23 Nonfinancial performance measures Ace, Incis an internet retailer o f equipment Customers onder golf equipment from the company, using an online catalog The company processes the orders and deliver the requested product from its w hose. The company wants to provide customers with an excellent purchase experience in order to expand the business through favorable word-ofmouth advertising and to drive repeat business To help monitor performance the company developed a set of performance measures for its order placement and de livery proces MEDICAL MOLDED PRODUCTS INC. Factory Overhead Cost Variance Report Trim Department For the Month Ended March 31, 2012 Productive capacity for the month: Actual productive capacity used for the month: hours hours Budget (at actual production) Variances Favorable Unfavorable Actual Variable factory overhead costs: Indirect factory labor Power and light Indirect materials Total Fixed factory overhead costs: Supervisory salaries Depreciation of plant and equip. Insurance and property taxes Total Total factory overhead cost Total controllable variances Fixed Factory OH Rate Net controllable variance(favorable) unfavorable Idle Hours Volume variance(fav.) unfav. Total factory overhead cost varianceX(favorable) unfavorable ARernative Computation of Overhead Variances: Factory Overhead Applied costs Actual costs Balance Actual Factory Overhead Applied Factory Overhead Budgeted Factory Overhead for Amount Produced Variable cost Fixed cost Total Controllable Volume Variance Variance Total Factory Overhead Cost Variance Supporting calculation: Variable factory overhead rate: Budgeted total variable cost Budgeted hours Variable factory overhead rate Fixed factory overhead rate: Total fixed costs Productive capacity hours Fixed factory overhead rate Total Actual hours 1 of 2 a $11,750 F EX 23-17 Factory overhead cost variances Casual Comfort Textiles Corporation began January with a budget for 30,000 hours of production in the Weaving Department. The department has a full capacity of 10.000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of January was as follows: Variable overhead $124.500 Foed overhead $186.500 Total The actual factory overhead was $178.900 for January. The actual fixed factory over head was as budgeted. During January, the Weaving Department had standard hours at actual production volume of 31,000 hours. a. Determine the variable factory overhead controllable variance b. Determine the fixed factory overhead volume variance EX 23-18 Factory overhead variance corrections The data related to Elite Sporting Goods Company's factory overhead cost for the produc tion of 50,000 units of product are as follows: Actual Variable factory overhead $218.900 Fixed factory overhead 157.500 Standard 76,000 hrs at $5.00 52.90 for variable factory overhead 380.000 Productive capacity at 100% of normal was 75.000 hours, and the factory overhead cost budgeted at the level of 76,000 standard hours was $377.900. Based on these data the chief cost accountant prepared the following variance analysis Variable factory overhead controllable variance Actual variable factory overhead cost incurred 521 900 Budgeted variable factory overhead for 76.000 hours 220.400 Variance favorable -$1.500 Fixed factory overhead volume variance Normal productive capacity at 100% 75 000 hrs Standard for amount produced 76,000 Productive capacity not used 1000 hrs Standard variable factory overhead rate X $5.00 Variance unfavorable Total factory overhead cost variance unfavorable $3.500 Identify the errors in the factory overhead cost variance analysis. Sooo OBJ. 4 Net controllable variance, $250 F EX 23-19 Factory overhead cost variance report Medical Molded Products Inc. prepared the following factory overhead cost budget for the Trim Department for March 2012. during which it expected to use 10.000 hours for production: $29,000 7.500 13.000 $49.500 Variable overhead cost Indirect factory labor Power and light Indirect materials Total variable cost Fixed overhead cost Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Totalfixed cost Total factory overhead cost $34.100 24.800 22.100 81000 1090 Chapter 23 Performance Evaluation Using Variances from Standard Coses Medical Molded Products hav e 15.000 hours of monthly productive capacity in the Trim Department under normal business conditions. During March the Trim Depart ment actually used 11000 hours for production. The actual food costs were as budgeted The actual variable overhead for Manch w as fobs Actual actory overhead cost Indirect actory bor Power and light Indirect Total cost $31.100 8.100 15.000 Construct a factory overhead cost variance report for the Trim Department for March EX 23-20 Recording standards in accounts Gemini Manufacturing Company incorporate standards in ons and identifies var ances at the time the manufacturing costs are curred. Joumalize the entries to record the following transactions: Purchased 1.700 units of copper ting on account at 6 0 per unit. The standard price is $65.00 per unit. Used 1.000 units of copper tubing in the process of manufacturing 110 air conditioners Eight units of copper tubing are required at standard, to produce one air conditioner EX 23-21 Recording standards in accounts The Assembly Department produced 2.000 units of product during June. Each unit required 175 standard direct labor hours. There were 3.500 actual hours used in the Assembly Department during June at a cual rate of $1460 per hour. The standard direct labor mate is $15 per hour. Assuming director for month is paid on the fifth day of the following month Journaline the direct labor in the Assembly Department on June 30. OBS Income before income tax. 561.200 EX 23-22 Income statement indicating standard cost variances The following data were taken from the records of Gentry Company for December 2012 572.000 Administrative expenses Cost of goods sold standard Det er Direct labor e Direct bortime n t Vectory on corteve Feed factory overhead volume de b e interest expense 2.200 620.000 Selling expenses Prepare an income statement for presentation to management EX 23-23 Nonfinancial performance measures Ace, Incis an internet retailer o f equipment Customers onder golf equipment from the company, using an online catalog The company processes the orders and deliver the requested product from its w hose. The company wants to provide customers with an excellent purchase experience in order to expand the business through favorable word-ofmouth advertising and to drive repeat business To help monitor performance the company developed a set of performance measures for its order placement and de livery proces ARernative Computation of Overhead Variances: Factory Overhead Applied costs Actual costs Balance Actual Factory Overhead Applied Factory Overhead Budgeted Factory Overhead for Amount Produced Variable cost Fixed cost Total Controllable Volume Variance Variance Total Factory Overhead Cost Variance Supporting calculation: Variable factory overhead rate: Budgeted total variable cost Budgeted hours Variable factory overhead rate Fixed factory overhead rate: Total fixed costs Productive capacity hours Fixed factory overhead rate Total Actual hours 1 of 2 a $11,750 F EX 23-17 Factory overhead cost variances Casual Comfort Textiles Corporation began January with a budget for 30,000 hours of production in the Weaving Department. The department has a full capacity of 10.000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of January was as follows: Variable overhead $124.500 Foed overhead $186.500 Total The actual factory overhead was $178.900 for January. The actual fixed factory over head was as budgeted. During January, the Weaving Department had standard hours at actual production volume of 31,000 hours. a. Determine the variable factory overhead controllable variance b. Determine the fixed factory overhead volume variance EX 23-18 Factory overhead variance corrections The data related to Elite Sporting Goods Company's factory overhead cost for the produc tion of 50,000 units of product are as follows: Actual Variable factory overhead $218.900 Fixed factory overhead 157.500 Standard 76,000 hrs at $5.00 52.90 for variable factory overhead 380.000 Productive capacity at 100% of normal was 75.000 hours, and the factory overhead cost budgeted at the level of 76,000 standard hours was $377.900. Based on these data the chief cost accountant prepared the following variance analysis Variable factory overhead controllable variance Actual variable factory overhead cost incurred 521 900 Budgeted variable factory overhead for 76.000 hours 220.400 Variance favorable -$1.500 Fixed factory overhead volume variance Normal productive capacity at 100% 75 000 hrs Standard for amount produced 76,000 Productive capacity not used 1000 hrs Standard variable factory overhead rate X $5.00 Variance unfavorable Total factory overhead cost variance unfavorable $3.500 Identify the errors in the factory overhead cost variance analysis. Sooo OBJ. 4 Net controllable variance, $250 F EX 23-19 Factory overhead cost variance report Medical Molded Products Inc. prepared the following factory overhead cost budget for the Trim Department for March 2012. during which it expected to use 10.000 hours for production: $29,000 7.500 13.000 $49.500 Variable overhead cost Indirect factory labor Power and light Indirect materials Total variable cost Fixed overhead cost Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Totalfixed cost Total factory overhead cost $34.100 24.800 22.100 81000 1090 Chapter 23 Performance Evaluation Using Variances from Standard Coses Medical Molded Products hav e 15.000 hours of monthly productive capacity in the Trim Department under normal business conditions. During March the Trim Depart ment actually used 11000 hours for production. The actual food costs were as budgeted The actual variable overhead for Manch w as fobs Actual actory overhead cost Indirect actory bor Power and light Indirect Total cost $31.100 8.100 15.000 Construct a factory overhead cost variance report for the Trim Department for March EX 23-20 Recording standards in accounts Gemini Manufacturing Company incorporate standards in ons and identifies var ances at the time the manufacturing costs are curred. Joumalize the entries to record the following transactions: Purchased 1.700 units of copper ting on account at 6 0 per unit. The standard price is $65.00 per unit. Used 1.000 units of copper tubing in the process of manufacturing 110 air conditioners Eight units of copper tubing are required at standard, to produce one air conditioner EX 23-21 Recording standards in accounts The Assembly Department produced 2.000 units of product during June. Each unit required 175 standard direct labor hours. There were 3.500 actual hours used in the Assembly Department during June at a cual rate of $1460 per hour. The standard direct labor mate is $15 per hour. Assuming director for month is paid on the fifth day of the following month Journaline the direct labor in the Assembly Department on June 30. OBS Income before income tax. 561.200 EX 23-22 Income statement indicating standard cost variances The following data were taken from the records of Gentry Company for December 2012 572.000 Administrative expenses Cost of goods sold standard Det er Direct labor e Direct bortime n t Vectory on corteve Feed factory overhead volume de b e interest expense 2.200 620.000 Selling expenses Prepare an income statement for presentation to management EX 23-23 Nonfinancial performance measures Ace, Incis an internet retailer o f equipment Customers onder golf equipment from the company, using an online catalog The company processes the orders and deliver the requested product from its w hose. The company wants to provide customers with an excellent purchase experience in order to expand the business through favorable word-ofmouth advertising and to drive repeat business To help monitor performance the company developed a set of performance measures for its order placement and de livery proces