Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[ The following information applies to the questions displayed below. ] A company manufactures binoculars. The cost of each pair of binoculars includes direct materials,

[The following information applies to the questions displayed below.]
A company manufactures binoculars. The cost of each pair of binoculars includes direct materials, direct labor, and manufacturing (factory) overhead. The firm traces all direct costs to products, and it assigns overhead cost to products based on direct labor hours.
The company budgeted $14,160 variable factory overhead cost, $88,800 for fixed factory overhead cost and 2,400 direct labor hours (its practical capacity) to manufacture 4,800 pairs of binoculars in March.
The factory used 2,800 direct labor hours in March to manufacture 4,700 pairs of binoculars and spent $15,900 on variable overhead during the month. The actual fixed overhead cost incurred for the month was $90,900.
Compute the following for the month indicate whether each variance is favorable (F) or unfavorable (U)::
Variable overhead spending variance
Variable overhead efficiency variance
Fixed overhead budget (spending) variance
Fixed overhead volume variance
Complete this question by entering your answers in the tabs below.
Calculate the following variances. Indicate whether each variance is favorable (F) or unfavorable (U).
\table[[,,],[Variable overhead rate (spending) variance,,],[Variable overhead efficiency variance,,],[Fixed overhead budget (spending) variance,,],[Fixed overhead volume variance,,]]
image text in transcribed

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

Authors: John Hoggett, Lew Edwards, John Medlin

6th Edition

0470806583, 978-0470806586

More Books

Students also viewed these Accounting questions