Premium Fender uses a standard cost system and provide the following information: (Click the icon to...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6652df9f9acb0_2316652df9f94fc1.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6652df9fdd60a_2316652df9fd7c3f.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6652dfa02829c_2326652dfa022433.jpg)
Transcribed Image Text:
Premium Fender uses a standard cost system and provide the following information: (Click the icon to view the information.) Premium Fender allocates manufacturing overhead to production based on standard direct labor hours. Premium Fender reported the following actual results for 2024: actual number of fenders produced, 20,000; actual variable overhead, $5,200; actual fixed overhead, $30,000; actual direct labor hours, 410. Read the requirements. Requirement 1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (You may need to simply the formula based on the data provided. Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = variable overhead.) VOH cost variance Formula (AC -SC) AQ Variance = VOH efficiency variance (AQ - SQ) SC = 2900|| U F Requirements 1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. 2. Explain why the variances are favorable or unfavorable. - Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours $2,875 $23,000 575 hours 25,000 units 0.023 hours per fender Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is because management spent than budgeted for the actual production. The variable overhead efficiency variance is because management used direct labor hours than standard and variable overhead is applied (incurred) based on direct labor. The fixed overhead cost variance is because management spent than the amount budgeted for fixed overhead. The fixed overhead volume variance is because management allocated fixed overhead to jobs than was budgeted. Choose from any list or enter any num unfavorable favorable Is and then continue to the next question. Requirement 2. Explain why the variances are favorable or unfavorable. 1 The variable overhead cost variance is because management spent than budgeted for the actual production. The variable overhead efficiency variance is because management used direct labor hours than standard and variable overhead is applied (incurred) based on direct labor. The fixed overhead cost variance is because management spent than the amount budgeted for fixed overhead. The fixed overhead volume variance is because management allocated fixed overhead to jobs than was budgeted. Choose from any list or enter any number in the input fields and then continue to tl less on. more 2 Premium Fender uses a standard cost system and provide the following information: (Click the icon to view the information.) Premium Fender allocates manufacturing overhead to production based on standard direct labor hours. Premium Fender reported the following actual results for 2024: actual number of fenders produced, 20,000; actual variable overhead, $5,200; actual fixed overhead, $30,000; actual direct labor hours, 410. Read the requirements. Requirement 1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (You may need to simply the formula based on the data provided. Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = variable overhead.) VOH cost variance Formula (AC -SC) AQ Variance = VOH efficiency variance (AQ - SQ) SC = 2900|| U F Requirements 1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. 2. Explain why the variances are favorable or unfavorable. - Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours $2,875 $23,000 575 hours 25,000 units 0.023 hours per fender Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is because management spent than budgeted for the actual production. The variable overhead efficiency variance is because management used direct labor hours than standard and variable overhead is applied (incurred) based on direct labor. The fixed overhead cost variance is because management spent than the amount budgeted for fixed overhead. The fixed overhead volume variance is because management allocated fixed overhead to jobs than was budgeted. Choose from any list or enter any num unfavorable favorable Is and then continue to the next question. Requirement 2. Explain why the variances are favorable or unfavorable. 1 The variable overhead cost variance is because management spent than budgeted for the actual production. The variable overhead efficiency variance is because management used direct labor hours than standard and variable overhead is applied (incurred) based on direct labor. The fixed overhead cost variance is because management spent than the amount budgeted for fixed overhead. The fixed overhead volume variance is because management allocated fixed overhead to jobs than was budgeted. Choose from any list or enter any number in the input fields and then continue to tl less on. more 2
Expert Answer:
Answer rating: 100% (QA)
To compute the overhead variances for Premium Fender well use the given formulas and data Lets start with the variable overhead VOH variances 1 The VO... View the full answer
Posted Date:
Students also viewed these accounting questions
-
The following sequence represents triplets on DNA: 3 TAC CAG ATA CAC TCC CCT GCG ACT 5 Draw a diagram, and describe the following: a. The mRNA codons that correspond to this DNA sequence b. The...
-
Briefly explain the importance of assets and liabilities to the decisions of investors and creditors. LO1.
-
Distinguish among spoilage, rework, and scrap, and apply the appropriate methods to account for the costs of normal and abnormal costs LO1
-
Kerrys car is totaled in an auto accident. The car originally cost $18,000, but is worth $7,500 at the time of the accident. Kerrys insurance company gives her a check for $7,500. Kerry has $30,000...
-
The governments of Australia and India have recently agreed to strengthen bilateral trade ties. Now, assume these two countries (Australia and India) and suppose that each country produces and...
-
1) Executive summary for the case analysis 2) The motivation for adopting an Enterprise system (ERP) within Cadbury 3) The benefits gained after the implementation of ERP system 4) Concluding...
-
Explain the budgeting process and the interlinking of the various budgets within the business.
-
Al Dunbar can normally be found at the Springfield, Massachusetts, Jewish Community Center (JCC) teaching the fine art of playing tennis. As a coach he has a profound impact on youth. He is the...
-
Define a budget and show how budgets, strategic objectives and strategic plans are related.
-
Discuss the criticisms that are made of budgeting.
-
The following data appear in the financial statements of a company. Calculate its current ratio. a. \(2: 1\) b. \(1: 2\) c. \(\$ 5,000\) d. \(\quad(\$ 5,000)\) Current assets Current liabilities....
-
Wildhorse Company expects to produce 1,260,000 units of product XX in 2022. Monthly production is expected to range from 70,200 to 110,600 units. Budgeted variable manufacturing costs per unit are as...
-
The Santa Luisa Museum of the Southwest is located in a lovely park-like setting on Lake Santa Luisa. The Museum houses several impressive permanent collections of early Taos art, Navajo weaving, and...
-
Refer to 7-12. Assume that Goodson converts the Dorzine to a solvent, and the annual net revenue from the sale of Dorzine is $13,000. How could Goodson account for the by-prod uct on its financial...
-
Vicki Thalberg owns the Sunny Trails Nursery. While the nursery sells a wide variety of flowers, houseplants, trees, and shrubs, Vicki has a special interest in Chinese pistache trees. The Chinese...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App