Solution a:
Variable Overhead Cost Variance | ||||||||||||
Actual Cost | Standard cost for actual quantity | Standard Cost | ||||||||||
AH * | AR = | AH * | SR = | SH * | SR = | |||||||
34000 | $30.07 | $1,022,400.00 | 34000 | $30.00 | $1,020,000.00 | 34640 | $30.00 | $1,039,200.00 | ||||
$2,400.00 | U | $19,200.00 | F | |||||||||
Variable overhead rate variance | Variable overhead efficiency variance | |||||||||||
Variable overhead rate variance | $2,400.00 | U | ||||||||||
Variable overhead efficiency variance | $19,200.00 | F | ||||||||||
Variable overhead cost variance | $16,800.00 | F |
Solution b:
Fixed Overhead Cost Variance | ||||||||||||
Actual Fixed OH Cost | Budgeted Fixed Overhead | Standard Cost (FOH Applies) | ||||||||||
SH* | BR | |||||||||||
$768,000.00 | $744,000.00 | 34640 | $20.00 | $692,800.00 | ||||||||
$24,000.00 | U | $51,200.00 | U | |||||||||
Fixed overhead Budget Variance | Fixed overhead volume variance | |||||||||||
Fixed overhead Budget Variance | $24,000.00 | U | ||||||||||
Fixed overhead volume variance | $51,200.00 | U | ||||||||||
Total Fixed overhead variance | $75,200.00 | U |
McDormand, Inc., reported a $2,400 unfavorable price variance for variable overhead and a $24,000 unfavorable price...
McDormand, Inc., reported a $3,400 unfavorable price variance for variable overhead and a $34,000 unfavorable price variance for fixed overhead. The flexible budget had $1,083,000 variable overhead based on 36,100 direct labor-hours, only 34,100 hours were worked. Total actual overhead was $1,810,400. The number of estimated hours for computing the fixed overhead application rate totaled 37,500 hours. Required: a. Prepare a variable overhead analysis. b. Prepare a fixed overhead analysis. Complete this question by entering your answers in the tabs...
McDormand, Inc., reported a $3,500 unfavorable price variance for variable overhead and a $35,000 unfavorable price variance for fixed overhead. The flexible budget had $1,084,500 variable overhead based on 36,150 direct labor-hours; only 34,110 hours were worked. Total actual overhead was $1,829,800. The number of estimated hours for computing the fixed overhead application rate totaled 38,400 hours. Required:a. Prepare a variable overhead analysis.b. Prepare a fixed overhead analysis.
McDormand, Inc., reported a $3,500 unfavorable price variance for variable overhead and a $35,000 unfavorable price variance for fixed overhead. The flexible budget had $1,084,500 variable overhead based on 36,150 direct labor-hours; only 34,110 hours were worked. Total actual overhead was $1,829,800. The number of estimated hours for computing the fixed overhead application rate totaled 38,400 hours. Required:a. Prepare a variable overhead analysis.b. Prepare a fixed overhead analysis.
Willow Inc. has provided the following information: Standards: Direct materials Direct labor Variable overhead Fixed overhead Total Per unit 10 lbs @ $2.90/lb $ 29.00 2 hours @ $17.50/hour 35.00 2 hours @ $11/hour 22.00 25.00 $111.00 Budgeted production = 7,300 units 75,050 lbs 14,100 actual hours Actual results Materials Direct labor Variable overhead Fixed overhead Units produced $216,015 $236,815 $ 161,570 $179,860 7,500 units a. Calculate the direct materials price variance. (Do not round your intermediate calculations. Indicate the...
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Maple Leaf Production manufactures truck tires. The following information is available for the last operating period. Maple Leaf produced and sold 95,000 tires for $45 each. Budgeted production was 99,000 tires. Standard variable costs per tire follow. Direct materials: 4 pounds at $2.00 $ 8.00 Direct labor: 0.40 hours at $18.50 7.40 Variable production overhead: 0.25 machine-hours at $14 per hour 3.50 Total variable costs $ 18.90 Fixed production overhead costs: Monthly budget $1,400,000 Fixed overhead is applied at the...
The standard cost sheet for Chambers Company, which manufactures one product, follows: Direct materials, 40 yards at $3.00 per yard $ 120 Direct labor, 5 hours at $30 per hour 150 Factory overhead applied at 70% of direct labor (variable costs = $70; fixed costs = $35) 105 Variable selling and administrative 74 Fixed selling and administrative 50 Total unit costs $ 499 Standards have been computed based on a master budget activity level of 29,800 direct labor-hours...
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