Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ricy variance Indicate whether this variance is favorable (F) or unfavorable (U) 4. Overhead (OH) Variances (3.5pts): Better Than That Cs provided the following

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Ricy variance Indicate whether this variance is favorable (F) or unfavorable (U) 4. Overhead (OH) Variances (3.5pts): Better Than That Cs provided the following information regarding factory Overhead (OH) from its flexible OH budget. The company has an operating capacity of 100,000 units and expects to operate at 75% of its productive capacity (ie, expects to operate at 75,000 units, which is 250*100,000 Flexible OH Budget Budgeted output (units) Budgeted Dt hours Budgeted Ot Variable OH Fixed O Operating Levels (% of capacity) 65% 20% 75% 805 65,000 78,000 th 70,000 84,000 DL 75,000 90,000 0 10,000 96,000 5429,000 $630,000 5462,000 5630,000 $495,000 5528,000 2610.000 $630,000 During the current month, the company actually operated at 70% capacity and actually used 87,500 hours to produce 70,000 units. The following actual overhead costs were incurred Actual Variable OH: Actual Fixed O 5455,000 $590,000 a (0.5pts) Calculate the predetermined standard Off rate per DL hour for (HINT: remember to calculate these OH rates at the BUDGETED capacity Variable Of Fixed O b. (0.5pts) Calculate the Variable OH Cost Variance Indicate whether this variance is favorable (F) or unfavorable (U) (0.5pts) Calculate the Variable OH Spending Variance. Indicate whether this variance is favorable (F) or unfavorable (U). d. (0.5pts) Calculate the Variable OH Efficiency Variance. Indicate whether this variance is favorable (F) or unfavorable (U). e f. & (0.5pts) Calculate the Fixed OH Cost Variance Indicate whether this variance is favorable (F) or unfavorable (U). (0.5pts) Calculate the Fixed OH Spending Variance. Indicate whether this variance is favorable (F) or unfavorable (U). (0.5pts) Calculate the Fixed Of Volume Variance Indicate whether this variance is favorable (F) or unfavorable (U).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles

Authors: John Wild, Ken Shaw, Barbara Chiappetta

22nd edition

9781259566905, 978-0-07-76328, 77862279, 1259566900, 0-07-763289-3, 978-0077862275

More Books

Students also viewed these Accounting questions