Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[The following information applies to the questions displayed below.] The Platter Valiey factory of Bybee Industries manufactures field boots. The cost of each boot includes

image text in transcribed
image text in transcribed
image text in transcribed
[The following information applies to the questions displayed below.] The Platter Valiey factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials. direct labor, and manufacturing (factory) overhead. The firm traces all direct costs to products, and it assignts overhead cost to products based on direct labor hours. The company budgeted $13,570 variable factory overhead cost, $89,700 for fixed factory overhead cost and 2,300 direct labor hours (its practical capacity) to manulacture 4,600 pairs of boots in March. The factory used 3,000 direct labor hours in March to manufacture 4,500 pairs of boots and spent $16,100 on variable overhead during the month. The actual fixed overhead cost incurred for the month was $92,000. Required: 1. Compute the foctory overhead flexible-budget variance, the factory overhead spending variance, and the efficiency variance for variable factory overhead for March and state whether each variance is favorable (F) or unfavorable (U). 2. Provide the appropriate journal entry to record the variable overhead spending variance and a second entry to record the variabie overhead efficiency variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs. Complete this question by entering your answers in the tabs below. Compute the factory overhead flesible-budget variance, the factory overhead spending variance, and the efficiency variance for variable factory overhead for March and state whether each variance is favorable (F) or unfavorable (U). Provide the appropriate journal entry to record the variable overhead spending variance and a second entry to record the variable overhead efficiency variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs. no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the variable overhead spending variance. Note: Enter debits b -ore credits. Provide the appropriate journal entry to record the variable overhead spending variance and a second entry to record the variable overhead efficiency variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the variable overhead efficiency variance. Note: Enter debits before credits

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

Financial Accounting

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

9th Edition

1118334329, 978-1118334324

More Books

Students also viewed these Accounting questions