Top Par Company makes customized golf shirts for sale to golf courses. Each shirt requires 1.5 hours to produce because of the customized logo for each golf course. Top Par uses direct labor-hours to allocate the overhead cost to production. Fixed overhead costs, including rent, depreciation, supervisory salaries, and other production expenses, are budgeted at $15,600 per month. The facility currently used is large enough produce 1,300 shirts per month. During March, Top Par produced 710 shirts and actual fixed costs were $11,200. Read the requirements. Requirements 1 & 2. Calculate the fixed overhead spending variance and indicate whether it is favorable (F) or unfavorable (U). If Top Par uses direct labor-hours available at capacity to calculate the budgeted fixed overhead rate, what is the production-volume variance? Indicate whether it is favorable (F) or unfavorable (U). Begin by determining the formula then computing the fixed overhead rate per direct labor hour. (Round the fixed overhead rate to the nearest cent.) Fixed overhead rate Next, complete the following table. Actual Costs Static Allocated Incurred Budget Overhead Calculate the fixed overhead spending variance and indicate whether it is favorable (F) or unfavorable (U). Spending variance Calculate the fixed overhead production-volume variance and indicate whether it favorable (F) or unfavorable (U). Production-volume variance Choose from any list or enter any number in the input fields and then continue to the next question. ? Save for Later Top Par Company makes customized golf shirts for sale to golf courses. Each shirt requires 1.5 hours to produce because of the customized logo for each golf course. Top Par uses direct labor-hours to allocate the overhead cost to production. Fixed overhead costs, including rent, depreciation, supervisory salaries, and other production expenses, are budgeted at $15,600 per month. The facility currently used is large enough to produce 1,300 shirts per month. During March, Top Par produced 710 shirts and actual fixed costs were $11,200. Read the requirements. Requirement 4. Watson's budgeted variable cost per unit is $25, and it expects to sell its shirts for $54 apiece. Compute the sales-volume variance and reconcile it with the production-volume variance calculated in requirement 2. What does each concept measure? Begin by calculating the static-budget operating income for March. Revenues Variable costs Fixed overhead costs Static-budget operating income Next, calculate the flexible-budget operating income for March. Revenues Variable costs Fixed overhead costs Flexible-budget operating income Compute the sales-volume variance and indicate whether it is favorable (F) or unfavorable (U). Salee.unuma varianra Choose from any list or enter any number in the input fields and then continue to the next question. ? Save for later Top Par Company makes customized golf shirts for sale to golf courses. Each shirt requires 1.5 hours to produce because of the customized logo for each golf course. Top Par uses direct labor-hours to allocate the overhead cost to production. Fixed overhead costs, including rent, depreciation, supervisory salaries, and other production expenses, are budgeted at $15,600 per month. The facility currently used is large enough to produce 1,300 shirts per month. During March, Top Par produced 710 shirts and actual fixed costs were $11,200. Read the requirements "wompuutri JUICU Vorm vururio Un muiuuL WITCCTG IuvuruvIUorur VOTUVIU 17. Sales-volume variance Now, select the formula and enter the amounts to calculate the operating-income volume variance. Operating-income volume variance Reconcile the sales-volume variance with the production-volume variance calculated in requirement 2. Sales-volume variance What does each concept measure? in fixed costs would be saved if production and sales The operating-income volume variance assumes that volume decreased by units. Choose from any list or enter any number in the input fields and then continue to the next question. Save for Later Top Par Company makes customized golf shirts for sale to golf courses. Each shirt requires 1.5 hours to produce because of the customized logo for each golf course. Top Par uses direct labor-hours to allocate the overhead cost to production. Fixed overhead costs, including rent, depreciation, supervisory salaries, and other production expenses, are budgeted at $15,600 per month. The facility currently used is large enough produce 1,300 shirts per month. During March, Top Par produced 710 shirts and actual fixed costs were $11,200. Read the requirements. Requirements 1 & 2. Calculate the fixed overhead spending variance and indicate whether it is favorable (F) or unfavorable (U). If Top Par uses direct labor-hours available at capacity to calculate the budgeted fixed overhead rate, what is the production-volume variance? Indicate whether it is favorable (F) or unfavorable (U). Begin by determining the formula then computing the fixed overhead rate per direct labor hour. (Round the fixed overhead rate to the nearest cent.) Fixed overhead rate Next, complete the following table. Actual Costs Static Allocated Incurred Budget Overhead Calculate the fixed overhead spending variance and indicate whether it is favorable (F) or unfavorable (U). Spending variance Calculate the fixed overhead production-volume variance and indicate whether it favorable (F) or unfavorable (U). Production-volume variance Choose from any list or enter any number in the input fields and then continue to the next question. ? Save for Later Top Par Company makes customized golf shirts for sale to golf courses. Each shirt requires 1.5 hours to produce because of the customized logo for each golf course. Top Par uses direct labor-hours to allocate the overhead cost to production. Fixed overhead costs, including rent, depreciation, supervisory salaries, and other production expenses, are budgeted at $15,600 per month. The facility currently used is large enough to produce 1,300 shirts per month. During March, Top Par produced 710 shirts and actual fixed costs were $11,200. Read the requirements. Requirement 4. Watson's budgeted variable cost per unit is $25, and it expects to sell its shirts for $54 apiece. Compute the sales-volume variance and reconcile it with the production-volume variance calculated in requirement 2. What does each concept measure? Begin by calculating the static-budget operating income for March. Revenues Variable costs Fixed overhead costs Static-budget operating income Next, calculate the flexible-budget operating income for March. Revenues Variable costs Fixed overhead costs Flexible-budget operating income Compute the sales-volume variance and indicate whether it is favorable (F) or unfavorable (U). Salee.unuma varianra Choose from any list or enter any number in the input fields and then continue to the next question. ? Save for later Top Par Company makes customized golf shirts for sale to golf courses. Each shirt requires 1.5 hours to produce because of the customized logo for each golf course. Top Par uses direct labor-hours to allocate the overhead cost to production. Fixed overhead costs, including rent, depreciation, supervisory salaries, and other production expenses, are budgeted at $15,600 per month. The facility currently used is large enough to produce 1,300 shirts per month. During March, Top Par produced 710 shirts and actual fixed costs were $11,200. Read the requirements "wompuutri JUICU Vorm vururio Un muiuuL WITCCTG IuvuruvIUorur VOTUVIU 17. Sales-volume variance Now, select the formula and enter the amounts to calculate the operating-income volume variance. Operating-income volume variance Reconcile the sales-volume variance with the production-volume variance calculated in requirement 2. Sales-volume variance What does each concept measure? in fixed costs would be saved if production and sales The operating-income volume variance assumes that volume decreased by units. Choose from any list or enter any number in the input fields and then continue to the next question. Save for Later