Simpson Manufacturing has the following standard cost sheet for one of its products: Total Direct materials 5 pounds at $2 per pound $ 10 Direct labor 2 hours at $25 per hour 50 Variable factory overhead 2 hours at $5 per hour 10 Fixed factory overhead 2 hours at $20 per hour 40 Cost per unit $ 110 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: Units manufactured 384 Direct materials purchased and used 1,920 pounds $ 21,120 Direct labor incurred 870 hours 23,490 Variable factory overhead incurred 5,568 Fixed factory overhead incurred 15,800 Before closing the periodic accounts, the (standard cost) entries in selected accounts follow: Debit Credit Account (total) (total) Work-in-process inventory $ 189,800 $ 146,640 Finished goods inventory 146,640 123,690 Cost of goods sold 123,690 5 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Determine for the period the following items: a. Flexible budget for variable factory overhead cost based on output for the period b. Total variable overhead cost applied to production during the period c. Total budgeted fixed factory overhead cost Total fixed factory overhead cost applied to production during the period d. d. Required Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the following factory overhead cost variances using a four-variance analysis: a. Total variable overhead cost variance b. Variable overhead spending variance c. Variable overhead efficiency variance d. Total underapplied or overapplied variable overhead e. Fixed overhead spending variance f Fixed overhead production volume variance 9. Total fixed overhead cost variance h. Total underapplied or overapplied fixed overhead Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the following factory overhead cost variances using three-variance analysis: a. Overhead spending variance b. Overhead efficiency variance c. Fixed overhead production volume variance Required 1 Required 2 Required 3 Required 4 Required 5 Compute the total overhead flexible-budget variance and the fixed overhead production volume variance using a two-variance analysis. Total overhead flexible-budget variance Fixed overhead production volume variance Using a single overhead account (e.g., Factory Overhead), make proper journal entries for: (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) a. Incurrence of factory overhead costs. b. Application of factory overhead costs to production. C. Identification of overhead variances assuming that the firm uses the four-variance analysis identified in requirement 2. d. Close all factory overhead cost items and their variances of the period if: (1) The firm closes all variances to the Cost of Goods Sold account. (2) The firm prorates variances to the inventory accounts and the cost of Goods Sold account Show less View transaction list
