Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Boston Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. Variable

image text in transcribedimage text in transcribedimage text in transcribed

The Boston Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. Variable manufacturing overhead is allocated to products on the basis of standard direct manufacturing labor-hours. (Click the icon to view the budget data for 2017.) (Click the icon to view the additional data for 2017.) The Boston Bread Company also allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor-hours. For 2017, fixed manufacturing overhead was budgeted at $3.00 per direct manufacturing labor-hour. Actual fixed manufacturing overhead incurred during the year was $288,000. Read the requirements. X Data Table Data Table Direct manufacturing labor use 0.02 hours per baguette Variable manufacturing overhead $10.00 per direct manufacturing labor-hour Planned (budgeted) output 3,500,000 baguettes Actual production 2,800,000 baguettes Direct manufacturing labor 50,300 hours Actual variable manufacturing overhead $684,080 Print Done Print Done Volume Requirement 1. Prepare a variance analysis of fixed manufacturing overhead cost. Begin by completing the table below for the fixed manufacturing overhead that will be used to calculate the variances. Same Budgeted Lump Sum Actual Costs Flexible Allocated Regardless of Output Level Incurred Budget Overhead Fixed MOH Now complete the 4-variance analysis using the amounts you calculated above. (If no variance exists leave the dollar value blank. Label the variance as favorable (F), unfavorable (U) or never a variance (N).) 4-Variance Production-Volume Spending Variance Efficiency Variance Analysis Variance Fixed MOH Choose from any list or enter any number in the input fields and then continue to the next question. ? NOW complete the 4-variance analysis using the amounts you calculated above. (If no variance exists leave the dollar value blank. Label the variance as favorable (F), unfavorable (U) or never a variance (N).) 4-Variance Spending Efficiency Production-Volume Analysis Variance Variance Variance Fixed MOH Requirement 2. Is fixed overhead underallocated or overallocated? By what amount? Fixed manufacturing overhead is by Requirement 3. Comment on your results. Discuss the variances and explain what may be driving them. The production-volume variance captures the difference between Boston Bread Company's spending variance means that the actual aggregate of fixed costs the budget amount. For example, monthly leasing rates for baguette-making machines may have those in the budget. Choose from any list or enter any number in the input fields and then continue to the next question. ? Save for Later Screenshot

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

Video Basics

Authors: Herbert Zettl

6th Edition

0495569437, 9780495569435

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

Question

What are the objectives of Human resource planning ?

Answered: 1 week ago