Gerhan Company's flexible budget for the units manufactured in May shows $15,600 of total factory overhead;...
Gerhan Company's flexible budget for the units manufactured in May shows $15,600 of total factory overhead; this output level represents 70% of available capacity. During May, the company applied overhead to production at the rate of $3.00 per direct labor hour (DLH), based on a denominator volume level of 6,120 DLHs, which represents 90% of available capacity. The company worked 6,000 DLHs and incurred $18,500 of total factory overhead cost during May, including $6,800 for fixed factory overhead. Under a three-variance breakdown (decomposition) of the total overhead variance, what is the total factory overhead spending variance (to the nearest whole dollar) for May? (Round your intermediate calculation to 2 decimal places.)
Multiple Choice
-
N/A—this variance does not exist in a three-variance analysis of the total overhead variance.
-
$304 favorable.
-
$384 unfavorable.
-
$484 unfavorable.
- $1,164 unfavorable.
Homework Answers
Factory overhead variance means the variance of factory overhead and it is shown the deference in the actual and budget factory overhead during the year.
Total factory overhead spending variance = Actual factory overhead - Budgeted allowance based on Actual hours
Budgeted allowance based on Actual hours = Actual direct labor hours * Predetermined overhead rate
= 6,000 * 3 = 18,000
Actual factory overhead = 18,500
Total factory overhead spending variance = 18,500 - 18,000 = 500 (Unfavourable)
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Gerhan Company's flexible budget for the units manufactured in
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Gerhan Company's flexible budget for the units manufactured in May shows $15,640 of total factory overhead; this output level represents 70% of available capacity. During May, the company applied overhead to production at the rate of $3.00 per direct labor hour (DLH), based on a denominator volume level of 6,120 DLHs, which represents 90% of available capacity. The company used 5,000 DLHs and incurred $16,500 of total factory overhead cost during May, including $6,800 for fixed factory overhead. What is...
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The total factory overhead spending variance in 2019 (to the nearest whole dollar), based on a...
The total factory overhead spending
variance in 2019 (to the nearest whole dollar), based on a
three-variance breakdown (decomposition) of the total overhead
variance for Bluecap Co., was:
Multiple Choice
$3,200 favorable.
$11,440 unfavorable.
$15,040 favorable.
$17,280 favorable.
$17,440 unfavorable.
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2019: Denominator volume-number of units Denominator volume-percent of capacity Denominator volume-standard direct labor hours (DLHS) Budgeted variable factory overhead cost at...
Under a two-variance breakdown (decomposition) of the total factory overhead variance, the fixed overhead production volume...
Under a two-variance breakdown (decomposition) of the total
factory overhead variance, the fixed overhead production volume
variance, to the nearest whole dollar, is:
Multiple Choice
$400 favorable.
$600 unfavorable.
$1,400 favorable.
$1,400 unfavorable.
$2,000 favorable.
b.
Under a two-variance breakdown (decomposition) of the total
factory overhead variance, the total flexible-budget variance, to
the nearest whole dollar, is:
Multiple Choice
$400 favorable.
$600 unfavorable.
$1,400 favorable.
$1,400 unfavorable.
$2,000 favorable.
The following information for the past year is available from Thinnews...
a)The total overhead variance in 2019 for Bluecap Co., to the nearest whole dollar, was: Multiple...
a)The total overhead variance in
2019 for Bluecap Co., to the nearest whole dollar, was:
Multiple Choice
$14,000 unfavorable.
$15,040 favorable.
$17,280 favorable.
$37,840 favorable.
$37,840 unfavorable.
b.The fixed overhead production volume variance for
Bluecap Co. in 2019, to the nearest dollar, was:
Multiple Choice
$11,280 favorable.
$17,280 favorable.
$28,800 unfavorable.
$34,800 unfavorable.
$51,840 favorable.
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2019: Denominator volume-number of units Denominator...
The following information is available from the Terry Company: Actual total factory overhead cost incurred $...
The following information is available from the Terry Company: Actual total factory overhead cost incurred $ 37,000 Actual fixed overhead cost incurred $ 11,200 Budgeted fixed overhead expenses $ 21,000 Actual direct labor hours (DLH) worked 5,300 Standard DLHs for this period’s production (output) 4,800 Standard variable overhead rate per DLH $ 3.00 Standard fixed overhead rate per DLH $ 2.50 What is the total overhead spending variance for Terry Company for the period, to the nearest whole dollar? $100...
Multiple Choice $11,000 unfavorable. $141,046 favorable. $143,286 favorable. $163,846 favorable. $163,846 unfavorable. Bluecap Co. uses a...
Multiple Choice
$11,000 unfavorable.
$141,046 favorable.
$143,286 favorable.
$163,846 favorable.
$163,846 unfavorable.
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2019: Denominator volume-number of units Denominator volume-percent of capacity Denominator volume-standard direct labor hours (DLHS) Budgeted variable factory overhead cost at denominator volume Total standard factory overhead rate per DLH 7,000 70% 42,000 $102,200 $ 15.10 During 2019, Bluecap worked 53,000 DLHs and manufactured 9,300 units. The actual factory...
Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for...
Factory Overhead Cost Variance Report
Tannin Products Inc. prepared the following factory overhead
cost budget for the Trim Department for July of the current year,
during which it expected to use 20,000 hours for production:
Variable overhead costs:
Indirect factory labor
$46,000
Power and light
12,000
Indirect materials
20,000
Total variable overhead cost
$78,000
Fixed overhead costs:
Supervisory salaries
$54,500
Depreciation of plant and equipment
40,000
Insurance and property taxes
35,500
Total fixed overhead cost
130,000
Total factory overhead cost...
Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for...
Factory Overhead Cost Variance Report
Tannin Products Inc. prepared the following factory overhead
cost budget for the Trim Department for July of the current year,
during which it expected to use 14,000 hours for production:
Variable overhead costs:
Indirect factory labor
$47,600
Power and light
10,360
Indirect materials
15,400
Total variable overhead cost
$73,360
Fixed overhead costs:
Supervisory salaries
$56,430
Depreciation of plant and equipment
14,850
Insurance and property taxes
27,720
Total fixed overhead cost
99,000
Total factory overhead cost...
Glavine & Co. produces a single product, each unit of which requires three direct labor hours...
Glavine & Co. produces a single product, each unit of which
requires three direct labor hours (DLHs). Practical capacity (for
setting the factory overhead application rate) is 58,000 DLHs, on
an annual basis. The information below pertains to the most recent
year:
Standard direct labor hours (DLHs) per unit produced
3.00
Practical capacity, in DLHs (per year)
58,000
Variable overhead efficiency variance
$
19,000
unfavorable (U)
Actual production for the year
16,500
units
Budgeted fixed manufacturing overhead
$
1,160,000
Standard...
The total factory overhead spending
variance in 2019 (to the nearest whole dollar), based on a
three-variance breakdown (decomposition) of the total overhead
variance for Bluecap Co., was:
Multiple Choice
$3,200 favorable.
$11,440 unfavorable.
$15,040 favorable.
$17,280 favorable.
$17,440 unfavorable.
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2019: Denominator volume-number of units Denominator volume-percent of capacity Denominator volume-standard direct labor hours (DLHS) Budgeted variable factory overhead cost at...
Under a two-variance breakdown (decomposition) of the total
factory overhead variance, the fixed overhead production volume
variance, to the nearest whole dollar, is:
Multiple Choice
$400 favorable.
$600 unfavorable.
$1,400 favorable.
$1,400 unfavorable.
$2,000 favorable.
b.
Under a two-variance breakdown (decomposition) of the total
factory overhead variance, the total flexible-budget variance, to
the nearest whole dollar, is:
Multiple Choice
$400 favorable.
$600 unfavorable.
$1,400 favorable.
$1,400 unfavorable.
$2,000 favorable.
The following information for the past year is available from Thinnews...
a)The total overhead variance in
2019 for Bluecap Co., to the nearest whole dollar, was:
Multiple Choice
$14,000 unfavorable.
$15,040 favorable.
$17,280 favorable.
$37,840 favorable.
$37,840 unfavorable.
b.The fixed overhead production volume variance for
Bluecap Co. in 2019, to the nearest dollar, was:
Multiple Choice
$11,280 favorable.
$17,280 favorable.
$28,800 unfavorable.
$34,800 unfavorable.
$51,840 favorable.
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2019: Denominator volume-number of units Denominator...
Multiple Choice
$11,000 unfavorable.
$141,046 favorable.
$143,286 favorable.
$163,846 favorable.
$163,846 unfavorable.
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2019: Denominator volume-number of units Denominator volume-percent of capacity Denominator volume-standard direct labor hours (DLHS) Budgeted variable factory overhead cost at denominator volume Total standard factory overhead rate per DLH 7,000 70% 42,000 $102,200 $ 15.10 During 2019, Bluecap worked 53,000 DLHs and manufactured 9,300 units. The actual factory...
Factory Overhead Cost Variance Report
Tannin Products Inc. prepared the following factory overhead
cost budget for the Trim Department for July of the current year,
during which it expected to use 20,000 hours for production:
Variable overhead costs:
Indirect factory labor
$46,000
Power and light
12,000
Indirect materials
20,000
Total variable overhead cost
$78,000
Fixed overhead costs:
Supervisory salaries
$54,500
Depreciation of plant and equipment
40,000
Insurance and property taxes
35,500
Total fixed overhead cost
130,000
Total factory overhead cost...
Factory Overhead Cost Variance Report
Tannin Products Inc. prepared the following factory overhead
cost budget for the Trim Department for July of the current year,
during which it expected to use 14,000 hours for production:
Variable overhead costs:
Indirect factory labor
$47,600
Power and light
10,360
Indirect materials
15,400
Total variable overhead cost
$73,360
Fixed overhead costs:
Supervisory salaries
$56,430
Depreciation of plant and equipment
14,850
Insurance and property taxes
27,720
Total fixed overhead cost
99,000
Total factory overhead cost...
Glavine & Co. produces a single product, each unit of which
requires three direct labor hours (DLHs). Practical capacity (for
setting the factory overhead application rate) is 58,000 DLHs, on
an annual basis. The information below pertains to the most recent
year:
Standard direct labor hours (DLHs) per unit produced
3.00
Practical capacity, in DLHs (per year)
58,000
Variable overhead efficiency variance
$
19,000
unfavorable (U)
Actual production for the year
16,500
units
Budgeted fixed manufacturing overhead
$
1,160,000
Standard...
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