Simpson Manufacturing has the following standard cost sheet for one of its products:

The company uses a standard cost system and applies factory overhead cost based on direct labor hours and determines the factory

overhead rate based on a practical capacity of $400$ units of the product.

Simpson has the following actual operating results for the year just completed:

Before closing the perlodic accounts, the $($standard cost$)$ entrles in selected accounts follow.

Required:

Determine for the perlod the following Items:

a$.$ Flexible budget for varlable factory overhead cost based on output for the perlod.

b$.$ Total varlable overhead cost applied to production during the perlod.

c$.$ Total budgeted fixed factory overhead cost.

d$.$ Total fixed factory overhead cost applied to production during the perlod.

Compute the following factory overhead cost varlances using a four$-$varlance analysls:

a$.$ Total varlable overhead cost varlance.

b$.$ Varlable overhead spending varlance.

c$.$ Varlable overhead efficlency varlance.

d$.$ Total underapplied or overapplied varlable overhead.

e$.$ Fixed overhead spending varlance.

f$.$ Fixed overhead production volume varlance.

g$.$ Total fixed overhead cost varlance.

h$.$ Total underapplied or overapplied fixed overhead.

Compute the following factory overhead cost varlances using three$-$varlance analysis:

a$.$ Overhead spending varlance.

b$.$ Overhead efficlency varlance.

c$.$ Fixed overhead production volume varlance.

Compute the total overhead flexible$-$budget varlance and the fixed overhead production volume varlance using a two$-$varlance

analysis.

Using a single overhead account $($e$.$g$.,$ Factory Overhead$),$ make proper journal entrles for:

a$.$ Incurrence of factory overhead costs.

b$.$ Application of factory overhead costs to production.

c$.$ Identification of overhead varlances assuming that the firm uses the four$-$varlance analysis identfied in requirement $2.$

d$.$ Close all factory overhead cost items and their varlances of the perlod If:

$(1)$ The firm closes all varlances to the Cost of Goods Sold account.

$(2)$ The firm prorates varlances to the Inventory accounts and the Cost of Goods Sold account.

Complete this question by entering your answers in the tabs below.

Compute the following factory overhead cost variances using three$-$variance analysis: