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Q3 Overhead Variance Analysis (32 marks) The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct cost categories:

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Q3 Overhead Variance Analysis (32 marks) The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct cost categories: direct materials and direct manufacturing labor. Variable manufacturing overhead is allocated to products on the basis of standard direct manufacturing labor hours. The following information has been provided: direct mfg budgeted input allowed 0.020 labor hours actual 2,738,248 49,000 Units assembled and sold 2 Actual direct manufacturing labor hours used 3 Variable manufacturing overhead rate # Fixed manufacturing overhead rate 5 Variable manufacturing overhead cost budgeted 3,100,000 62,000 13.70 $ 4.60 $ 750,280 6 Fixed manufacturing overhead costs 7 $ 299,000 Required: 1. Prepare an analysis of all variable manufacturing overhead variances (12 marks): Spending (or rate) Actual Inputs Actual Variable MOH variance budgeted rate Efficiency variance Flexible Budget Production Volume Variable Overhead Variance Allocated Is variable overhead over or under allocated? By how much? 2. Prepare an analysis of all fixed manufacturing overhead variances (12 marks) Spending (or rate) variance Statie & Flexible Budget Static & Flexible Budget Production Volume Variance Actual Fixed MOH Fixed Overhead Allocated Efficiency variance Is fixed overhead over or under allocated? By how much? 3. Determine if the following accounts would be debited or credited and the related amount to record variances and close the variable overhead accounts (4 marks): Account Debitor Credit Amount Variable Mfg Overhead Allocated Variable Mfg Overhead Control 3. Determine if the following accounts would be debited or credited and the related amount to record variances and close the variable overhead accounts (4 marks): Account Debit or Credit Amount Variable Mfg Overhead Allocated Variable Mfg Overhead Control Variable Mfg Overhead Efficiency Variance Variable Mfg Overhead Spending Variance 4. Determine if the following accounts would be debited or credited and the related amount to record variances and close the fixed overhead accounts (4 marks): Account Debit or Credit Amount Fixed Mfg Overhead Allocated Fixed Mfg Overhead Control Fixed Mfg Overhead Production Volume Variance Fixed Mfg Overhead Spending Variance

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