Question

Wright Foods processes bags of organic frozen fruits sold at specialty grocery stores. Click the icon to view additional information.) Read the requirements. Begin by determing the formula for the variable MOH rate variance, then calculate the variable overhead rate variance. (Enter the result as a positive number. Enter rates to two decimal places. Label the variance as favorable (F) or unfavorable (U).) Variable overhead rate variance ) = This variance tells managers that Wright Foods actually incurred on variable manufacturing overhead than they would have expected given the actual hours used. Now determine the formula for the variable MOH efficiency variance, then calculate the efficiency variance. (Enter the result as a positive number. Enter any rates to two decimal places. Label the variance as favorable (F) or unfavorable (U).) Variable overhead efficiency variance J) = This variance tells managers that Wright Foods used direct labor hours than anticipated for the actual volume of output. Requirement 3. Compute the fixed MOH budget variance and the fixed overhead volume variance. What do these variances tell managers? Begin by determing the formula for the fixed MOH budget variance, then calculate the fixed budget variance. (Enter the result as a positive number. Label the variance as favorable (F) or unfavorable (U).) Fixed MOH budget variance = This variance tells us that Wright Foods spent than anticipated on fixed overhead costs. Now determine the formula for the fixed overhead volume variance, then calculate the volume variance. (Enter the result as a positive number. Label the variance as favorable (F) or unfavorable (U).) Fixed MOH = volume variance This variance tells managers that Wright Foods produced y cases of frozen organic fruits than originally expected.

Answer 1

i lucten Answerey Page: No 0 * Variable overhead allocated the production Variable overhead allocated fo production - (160,000 X 0.25)x$0.60 = 40,000 * $0.60 = $04000 i variable overhead allocated to production (24000 fized overhead allocated to production fixed overhead allocated to production = (160,000x 0.25) x$16.60 = 40,000 x $ 16.60 = $664000 fined overhead allocated to production = $664000 @ Total actual overheads = $ 406,080 Tot al acal fixed overheads - $652000 Total aclü al' variable overhead = 406080 – 650000 : 554080 acial drieck labor bro - = 41600 Achial orate. = $13 41600

rede variance Page No @ Variable overhead crate variance Actual hours x (actual rate - ssfandan vete) veniable ovenbened 41600 x 13 - $016) - $29180 u This variance fell managers that the Wright fods actually incurred more on variable manufacturing overhead that they would have expected given the actual bowers used: Variable momente soliciany wariance I Standard vrate x (actual bro. $0.60 x C 41600 40,000) = $960 0 Standard hours = 160,000 X 0.25 = 40,000 This variance tells managers that wright foods used more direct laboy hours than anticipated for actual volume of output e fixed Man budget variance Aclial faed OH - Budgeted fixed oH = firied MOH budget vaniance $652000 - $625000 = $ 24000 U. daid hours) Variance MOM chiuency variance

Page No ③ - This variance tells managers that wright foods spent more than anticipated on fixed overhead costs Fixed overhead valime variance Bergeted fixed or - stardard For albachd friend overhead volume baniane $685000 - $664000 = $39000 F This variance belles managers thout wright foods produced more cases of frozen organic fruits thas originally expected-