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Simpson Manufacturing has the following standard cost sheet for one of its products, Direct materials Direct labor Variable factory overhead Fixed factory overhead Cost per

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Simpson Manufacturing has the following standard cost sheet for one of its products, Direct materials Direct labor Variable factory overhead Fixed factory overhead Cost per unit 5 pounds at $2 per pound 2 hours at $25 per hour 2 hours at $5 per hour 2 hours at $20 per hour Total $ 10 se 1e ce $ 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 372 Direct materials purchased and used Direct labor incurred 1,850 pounds $ 20,460 810 hour's Variable factory overhead incurred 21,870 5,184 Fixed factory overhead Incurred 15,800 Before closing the periodic accounts, the (standard cost) entries in selected accounts follow. Account Debit (totaly Credit (total) Work-in-process inventory $ 171,000 $ 140,640 Finished goods Inventory 140,648 117,690 Cost of goods sold 117,690 Required: 1. Determine for the period the following items a. Flexible budget for variable factory overhead cost based on output for the period. b. Total vanable overhead cost applied to production during the period. c. Total budgeted fixed factory overhead cost. d. Total fixed factory overhead cost applied to production during the period. 2. Compute the following factory overhead cost Vartances using a four-variance analysis: a. Total variable overhead cost variance b. Variable overhead spending variance c. Vanable overhead officiency 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 3. Compute the following factory overhead cost vortances using three variance analysis. a. Overhead spending variance b. Overhead efficiency variance c. Fixed overhead production volume variance 4. compute the total overhead Nexible-budget variance and the fixed overhead production volume vartance using a two-variance analysis 5. Using a single overhead account ke 9. Factory Overneud, make proper journal entries for a. Incurrence of factory overhead costs b. Application of factory overhead costs to production Identification of overhead Variances assuming that the firm uses the four-variance analysis identified in requirement 2 d. Close all factory overhead cost toms and their variances of the period if The firm closes all variances to the Cost of Goods Sold account 12) The firm prorates variances to the Inventory accounts and the Cost of Goods Sold account Direct materials purchased and used Direct labor incurred Variable factory overhead incurred Fixed factory overhead incurred 1,860 pounds 810 hours $ 20,468 21,878 5,184 15,800 Before closing the periodic accounts, the standard cost) entries in selected accounts follow. Account Work-in-process inventory Finished goods Inventory Cost of goods sold Debit (total) Credit (total) $ 171,600 $ 148,640 140,640 117,690 117,690 Required: 1. 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 d. Total fixed factory overhead cost applied to production during the period. 2. Compute the following factory overhead cost variances using a four-vartance analysis: a. Total variable overhead cost variance. b. Variable overhead spending variance. c. Variable overhead officiency variance d. Total underapplied or overapplied variable overhead. e Fixed overhead spending variance Fixed overhead production volume variance g. Total fixed overhead cost varlance h. Total underapplied or overapplied fixed overhead 3. Compute the following factory overhead cost variances using three-vartance analysis: a Overhead spending variance b. Overhead efficiency variance c. Fixed overhead production volume variance. 4. Compute the total overhead flexible-budget variance and the fixed overhead production volume variance us: analysis. 5. Using a single overhead account (eg. Factory Overhead). make proper journal entries for 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 requ d. Close all factory overhead cost items and their vartances of the period if (1) The firm closes all variances to the cost of Goods Sold account 12) The firm prorates vartances to the Inventory accounts and the Cost of Goods Sold account Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 Required Pequired 5 Determine for the period the following items! B Flexible budget for variable tactory overhead cost based on output for the period Total variable overhead cost applied to production during the period Total budgetadfeed factory overhead cost Totalfixed factory overhead cost applied to production during the period Required 2 > 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 o. Variable overhead efficiency variance Total underapplied or overapplied variable overhead el Fixed overhead spending variance f. Fixed overhead production volume variance 9. Total fixed overhead cost variance h. Total underapplied or overapplied fixed overhead Unfavorable Unfavorable Unfavorable Underapplied Favorable Unfavorable Unfavorable Underapplied f 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 b Overhead spending variance Overhead efficiency variance Fixed overhead production volume variance Funfavorable Unfavorable Unfavorable c Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required a Required 5 Compute the total overhead flexible-budget variance and the fixed overhead production vol analysis. Total overhead flexible-budget variance Fixed overhead production volume variance Unfavorable Unfavorable Required 1 Required 2 Required 3 Required 4 Required 5 Using a single overhead account (e.g. Factory Overhead), make proper journal entries for: (If no entry is required transaction/event, select "No joumal entry required" in the first account field. Do not round intermediate calculation 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 requirer d. Close all factory overhead cost items and their variances of the period if: (1) The firm coses 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 No Transaction Debit edit a General Journal Factory overhead Cash, Prepaid accounts, Accumulated depreciation and/or Sundry 2 b Work-in-process inventory Factory overhead vol 3 Variable factory overhead spending variance Variable factory overhead efficiency variance Fixed overhead production volume variance Fixed factory overhead spending variance Factory overhead 200 OOOOO OOOOO 4 d.(0) 200 Cost of goods sold Fibed factory overhead spending variance Variable factory overhead efficiency variance Variable factory overhead spending variance Foed overhead production volume variance 5 d.2) Work in process inventory Finished goods inventory Cost of goods sold Find factory overhead spending variance Variable factory overhead eiciency variance OOOO

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