The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Overhead Costs Variable cost...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6647d51cf0a4f_6446647d51c5c156.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6647d51de08d2_6456647d51d4dc2c.jpg)
Transcribed Image Text:
The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Overhead Costs Variable cost Fixed cost Total overhead cost Cost Formula (per machine- hour) $1.05 Machine-Hours 8,500 9,500 10,500 $ 8,925 $ 9,975 $11,025 28,900 28,900 28,900 $37,825 $38,875 $39,925 The following information is available for a recent period: a. The denominator activity of 8,500 machine-hours was chosen to compute the predetermined overhead rate. b. At the 8,500 standard machine-hours level of activity, the company should produce 2,125 units of product. c. The company's actual operating results were as follows: Number of units produced Actual machine-hours Actual variable overhead costs Actual fixed overhead costs 2,425 8,500 $ 9,800 $ 29,000 2. What were the standard hours allowed for the year's actual output? (Do not round intermediate calculations.) Standard hours for actual production MHs 3. Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances. (Do not round intermediate calculations. Round your answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Variable overhead spending variance Variable overhead efficiency variance Fixed overhead budget variance Fixed overhead volume variance The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Overhead Costs Variable cost Fixed cost Total overhead cost Cost Formula (per machine- hour) $1.05 Machine-Hours 8,500 9,500 10,500 $ 8,925 $ 9,975 $11,025 28,900 28,900 28,900 $37,825 $38,875 $39,925 The following information is available for a recent period: a. The denominator activity of 8,500 machine-hours was chosen to compute the predetermined overhead rate. b. At the 8,500 standard machine-hours level of activity, the company should produce 2,125 units of product. c. The company's actual operating results were as follows: Number of units produced Actual machine-hours Actual variable overhead costs Actual fixed overhead costs 2,425 8,500 $ 9,800 $ 29,000 2. What were the standard hours allowed for the year's actual output? (Do not round intermediate calculations.) Standard hours for actual production MHs 3. Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances. (Do not round intermediate calculations. Round your answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Variable overhead spending variance Variable overhead efficiency variance Fixed overhead budget variance Fixed overhead volume variance
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
The Kay Company has the following Capital structure as at 31st March 2019. Based on Book Value Based on Market Value % Costs Debentures 300,000 330,000 ...
-
Compact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.45 and lasts for 1,000 hours. A...
-
How did the locking of the cockpit door change the nature of the flight crews task? How did the change in policies after the crash address this issue?
-
Below are selected data from a recent MGM Resorts International financial statement. Amounts are in thousands. Required Calculate the MGM Resorts International (a) accounts receivable turnover, and...
-
Refer to Examples 19 and 23 in the chapter. Firm D holds 10,000 gallons of whiskey in inventory on October 31, 2010, that costs $225 per gallon. Firm D contemplates selling the whiskey on March 31,...
-
Bond Valuation - Annual Coupon Payments M. J. Babson, Inc. recently issued bonds that mature in 20 years. They have a par value of $1,000 and an annual coupon of 6.5 percent. If the current market...
-
whether is an isomorphism of binary operations. 1. Z with+ and o(n) = -n. 2. Z with + and o(n) = 2n. 3. Z with+ and o(n) = n+1.1 4. Q with+ and o(r) = x/2. 5. Qwith x and o(r) = 1. For each of the...
-
Consider the rate of return of stocks ABC and XYZ . Year rABC rXYZ 1 2 3 % 3 8 % 2 8 1 2 3 1 7 1 8 4 5 1 5 3 1 3 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ c ....
-
An engineer will deposit 10% of her salary each year into a retirement fund. If her current annual salary is $87,000 and she expects that it will increase by 9% each year, what will be the present...
-
Evans Company reported the following: Manufacturing costs Units manufactured Units sold Beginning inventory $2,385,000 53,000 40,000 units sold for $100 per unit O units What is the amount of gross...
-
Consider a landowner that uses water as a primary input into the production of food. Similar to the problem above, suppose the land has a general production function of f(w) - aw - w, where w is the...
-
If the capital stock is 2 times annual GDP, depreciation is 8% of GDP, and capital income is 20% of GDP, then What is the net marginal product of capital?
-
Compare to traditional organizational development approaches. To get back on track and find a way to function more smoothly, should this taskforce use an Appreciative Inquiry approach or a more...
-
Show that every group G with identity e and such that x * x = e for all x G is abelian.
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App