Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please give me the correct answer with a necessary calculation Problem 2-8 points River Company applies variable and fixed overhead to its products based on
please give me the correct answer with a necessary calculation
Problem 2-8 points River Company applies variable and fixed overhead to its products based on direct labor hours The following estimates were made for 2017: 50,000 6 $900,000 $1,200,000 Planned output (units) Standard labor hours per unit Total estimated variable overhead Total estimated fixed overhead The following actual amounts occurred during 2017: Output (units) Labor hours Total variable overhead Total fixed overhead 48,000 293,000 $924,000 $1,140,000 Calculate the following variances and indicate whether each is favorable (F) or unfavorable (U). Variable overhead spending variance Variable overhead efficiency variance Fixed overhead budget (price) variance Fixed overhead production volume variance Problem 1-9 points During November, Ear Aches produced 80,000 pairs of high quality headphones, Some of the standards for each pair of headphones are as follows: Plastic for Headphone speaker housings: 5 ounces at $0.15 per ounce Direct labor to assemble headphones: 0.3 labor hours at $12.00 per hour S0.75 $3.60 Actual production information showed the following: Plastic used: 410,000 ounces Direct labor. 23,980 hours $73,800 $273,372 Calculate the folowing and indicate whether each variance is favorable or unfavorable: Total material variance Material quantity variance Material cost varianceStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started