Question
Use the following information for questions 5 11: Company ABC manufactures radios and uses machine hours (MH) as its allocation base. The following information relates
Use the following information for questions 5 11:
Company ABC manufactures radios and uses machine hours (MH) as its allocation base. The following information relates to the companys manufacturing overhead data for 2021: Budgeted output 33,200 radios Budgeted machine hours per radio 3 MH per radio Budgeted variable overhead rate per MH $18.50 per MH Budgeted fixed overhead rate per MH $15.70 per MH Actual output 25,900 radios Actual machine hours used 116,550 MH Actual variable overhead cost $1,748,250 Actual fixed overhead cost $1,398,600
5. Calculate the flexible-budget variance for fixed overhead for 2021.
6. Calculate the spending variance for fixed overhead for 2021.
7. Calculate the production-volume variance for fixed overhead for 2021
8. Calculate the flexible-budget variance for variable overhead for 2021.
9. Calculate the spending variance for variable overhead for 2021
10. Calculate the efficiency variance for variable overhead for 2021.
11. Provide an explanation (i.e., a possible cause) for each of the following variances. What does each variance tell us about the companys performance (other than being favorable/unfavorable)?
a. Fixed overhead spending variance (from question #6)
b. Variable overhead spending variance (from question #9)
c. Variable overhead efficiency variance (from question #10)
I need help from question 5-8, please. The rest of the question I will post in a different question.
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