Question 1

[The following information applies to the questions displayed below.]

Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 54,300 machine hours per year, which represents 27,150 units of output. Annual budgeted fixed factory overhead costs are $271,500 and the budgeted variable factory overhead cost rate is $3.40 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 20,900 units, which took 43,300 machine hours. Actual fixed factory overhead costs for the year amounted to $261,500 while the actual variable overhead cost per unit was $3.30.

Based on the information provided above, calculate the following factory overhead variances for the year. Indicate whether each variance is favorable (F) or unfavorable (U).(Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

a. Total Overhead Variance

b. Total Flexible Budget Variance

c. Production Volume Variance

Question 2-1

[The following information applies to the questions displayed below.]

Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 54,300 machine hours per year, which represents 27,150 units of output. Annual budgeted fixed factory overhead costs are $271,500 and the budgeted variable factory overhead cost rate is $3.40 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 20,900 units, which took 43,300 machine hours. Actual fixed factory overhead costs for the year amounted to $261,500 while the actual variable overhead cost per unit was $3.30.

Based on the information provided above, provide an appropriate end-of-year closing entry for each of the following two independent situations: (a) the net factory overhead cost variance is closed entirely to Cost of Goods Sold (CSG), and (b) the net factory overhead variance is allocated among WIP Inventory, Finished Goods Inventory, and CGS using the following percentages: 10%, 20%, and 70%, respectively.(Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the net variance closed to cost of goods sold.

Question 2-2

Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 54,300 machine hours per year, which represents 27,150 units of output. Annual budgeted fixed factory overhead costs are $271,500 and the budgeted variable factory overhead cost rate is $3.40 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 20,900 units, which took 43,300 machine hours. Actual fixed factory overhead costs for the year amounted to $261,500 while the actual variable overhead cost per unit was $3.30.

Based on the information provided above, provide an appropriate end-of-year closing entry for each of the following two independent situations: (a) the net factory overhead cost variance is closed entirely to Cost of Goods Sold (CSG), and (b) the net factory overhead variance is allocated among WIP Inventory, Finished Goods Inventory, and CGS using the following percentages: 10%, 20%, and 70%, respectively.

Record the net variance allocated to ending inventories and Cost of Goods Sold.

Question 3

Clark Company's master budget includes $408,000 for equipment depreciation. The master budget was prepared for an annual volume of 136,000 chargeable hours. This volume is expected to occur uniformly throughout the year. During September, Clark performed 12,600 chargeable hours and recorded $34,500 of depreciation.

Required:

1. Determine the flexible-budget amount for equipment depreciation in September.

2. Compute the spending variance for the depreciation on equipment. Was the variance favorable (F) or unfavorable (U)?(Leave no cell blank; if there is no effect enter "0" and select "None" from dropdown.)

3. Calculate the fixed overhead production volume variance for depreciation expense in September. Was this variance favorable (F) or unfavorable (U)?(Leave no cell blank; if there is no effect enter "0" and select "None" from dropdown.)

1. Flexible Budget amount
2. Spending Variance - equipment depreciation
3. Production Volume Variance

Question 4

Walkenhorst Company's machining department prepared its 2019 budget based on the following data:

Practical capacity40,000units

Standard machine hours per unit2

Standard variable factory overhead$3.00per machine hour

Budgeted fixed factory overhead$304,000

The department uses machine hours to apply factory overhead to production. In 2019, the department used 86,400 machine hours and incurred $575,000 in total manufacturing overhead cost to manufacture 42,130 units. Actual fixed overhead cost for the year was $318,000.

Required:

Determine for the year:

1. The fixed, variable, and total factory overhead application rates (per machine hour).(Round your answers to 2 decimal places.)

2. The total flexible budget, for factory overhead cost based on output achieved in 2019.

3. The production volume variance. State whether this variance was favorable (F) or unfavorable (U).

4. The total overhead spending variance. State whether this variance was favorable (F) or unfavorable (U).

5. The overhead efficiency variance. State whether this variance was favorable (F) or unfavorable (U).

6. The variable overhead spending variance and the fixed overhead spending variance. State whether each variance is favorable (F) or unfavorable (U).

Fixed Overhead application rate

Variable Overhead application rate

Total Factory Overhead application rate

Total Flexible Budget for Overhead cost

Production Volume Variance

Total Overhead Spending Variance

Overhead Efficiency Variance

Variable Overhead Spending Variance

Fixed Overhead Spending Variance