Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Delcarmen Company uses standard costing in its manufacturing plant for auto parts. The standard cost of a particular auto part, based on a

The Delcarmen Company uses standard costing in its manufacturing plant for auto parts. The standard cost of a particular auto part, based on a denominator level of 3,600 output units per year included 5 machine-hours of variable manufacturing overhead at $7 per hour and 5 machine-hours of fixed manufacturing overhead at $17 per hour. Actual output produced was 3,900 units Variable manufacturing overhead incurred was $250,000. Fixed manufacturing overhead incurred was $385,000. Actual machine-hours were 27,000.

Requirement 1. Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead variances, using the 4-variance analysis. Begin by calculating the following amounts for the variable overhead. Actual Input Actual Costs Flexible Allocated Incurred Budgeted Rate Budget Overhead Variable OH Now complete the table below for the fixed manufacturing overhead Same Budgeted Lump Sum Actual Costs Regardless of Flexible Budget Allocated Incurred Output Level Overhead

Now complete the 4-variance analysis using the amounts you calculated above. (f no variance exists, leave the dollar value blank. Label the variance as favorable (F), unfavorable (U) or never a variance (N).) Efficiency Variance 4-Variancie Spending Production-Volume Variance Variance Variable OH Requirement 2. Prepare journal entries using the 4-variance analysis. Record the actual variable manufacturing overhead incurred. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit 

Record the variable manufacturing overhead allocated Journal Entry Date Accounts Debit Credit Record the variable manufacturing overhead variances for the period.

Journal Entry Date Accounts Debit Credit Record the actual fixed overhead costs incurred Journal Entry Date Accounts Debit Credit

Journal Entry Date Accounts Debit Credit Record the actual fixed overhead costs incurred Journal Entry Date Accounts Debit Credit

Record the fixed overhead costs allocated. Journal Entry Date Accounts Debit Credit Record the fixed overhead variances for the period. Date Accounts Debit Credit  

The Delcarmen Company uses standard costing in its manufacturing plant for auto parts. The standard cost of a particular auto part, based on a denominator level of 3,600 output units per year, included 5 machine-hours of variable manufacturing overhead at $7 per hour and 5 machine-hours of fixed manufacturing overhead at $17 per hour. Actual output produced was 3,900 units. Variable manufacturing overhead incurred was $250,000. Fixed manufacturing overhead incurred was $385,000. Actual machine-hours were 27,000. Requirement 1. Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead variances, using the 4-variance analysis. Begin by calculating the following amounts for the variable overhead. Actual Costs Fixed OH Incurred Actual Costs Actual Input Variable OH Now complete the table below for the fixed manufacturing overhead. Same Budgeted Lump Sum Incurred X Budgeted Rate Regardless of Output Level Flexible Budget Flexible Budget Allocated Overhead Allocated Overhead 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 Analysis Variable OH Fixed OH Date Spending Variance Efficiency Variance Requirement 2. Prepare journal entries using the 4-variance analysis. Record the actual variable manufacturing overhead incurred. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Accounts Production-Volume Variance Debit Credit Record the variable manufacturing overhead allocated. Date Journal Entry Accounts Record the variable manufacturing overhead variances for the period. Debit Credit Date Record the actual fixed overhead costs incurred. Date Journal Entry Accounts Journal Entry Accounts Debit Debit Credit Credit Date Record the actual fixed overhead costs incurred. Date Journal Entry Accounts Journal Entry Accounts Debit Debit Credit Credit Record the fixed overhead costs allocated. Date Journal Entry Date Accounts Record the fixed overhead variances for the period. Journal Entry Accounts Debit Debit Credit Credit

Step by Step Solution

3.31 Rating (154 Votes )

There are 3 Steps involved in it

Step: 1

Solution Let G be a group of order pq where p and q are distinct primes Th... 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

Horngrens Cost Accounting A Managerial Emphasis

Authors: Srikant M. Datar, Madhav V. Rajan

17th Edition

0135628474, 9780135628478

More Books

Students also viewed these Accounting questions

Question

4. How does light reset the biological clock?

Answered: 1 week ago

Question

21. How does L-dopa relieve the symptoms of Parkinsons disease?

Answered: 1 week ago