Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tera SARL uses a standard costing system in which completed units is the measure of activity. Data from the company's flexible budget for manufacturing overhead

Tera SARL uses a standard costing system in which completed units is the measure of activity. Data from the company's flexible budget for manufacturing overhead and operations for the most recent period are given below:

  • Flexible Budget:
  • Budgeted Level of Activity: 6,400 completed units
  • Overhead costs at the Budgeted activity level:
  • Variable Overhead Cost: $14,720
  • Fixed Overhead Cost: $31,552
  • Most Recent period's operations:
  • Actual level of activity: 6,200 completed units
  • Standard level of activity for output: 6,420 completed units
  • Actual total variable overhead cost: $14,012
  • Actual total fixed overhead cost: $33,604

PART AWhat is the variable overhead rate variance?Answer

$248 Favorable

$708 Favorable

$249 Unfavorable

$204 Unfavorable

$754 Favorable

PART B

What is the variable overhead efficiency variance?Answer

$506 Favorable

$497 Favorable

$754 Favorable

$45 Unfavorable

$460 Favorable

PART C

What is the fixed overhead budget variance?Answer

$2,052 Unfavorable

$1,953 Unfavorable

$3,038 Unfavorable

$99 Unfavorable

$986 Favorable

PART D

What is the fixed overhead volume variance?Answer

$99 Favorable

$2,052 Unfavorable

$2,052 Favorable

$3,244 Favorable

$3,038 Unfavorable

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

Step: 3

blur-text-image

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

Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel,  Jerry J. Weygandt,  Jill E. Mitchell

8th Edition

1119791057, 978-1119791058

More Books

Students also viewed these Accounting questions

Question

Explain the various methods of job evaluation

Answered: 1 week ago

Question

Differentiate Personnel Management and Human Resource Management

Answered: 1 week ago

Question

Describe the functions of Human resource management

Answered: 1 week ago