QUESTION 7 Likert company manufactures extremely accurate scales. They use a standard costing system. Last year...

Question

Question

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1


Since fixed overhead budget variance has been credited with $136000
it is unfavorable variance

Fixed overhead budget variance = Budgeted overhead - Actual overhead

$136000 (U) = $2318000 -Actual Fixed Overhead
-136000 =2318000 - actual fixed overhead

Actual Fixed Overhead = $2454000

Feel Free To Discuss Queries. Please Rate

Add a comment

Answer 2

Similar Homework Help Questions

Likert company manufactures extremely accurate scales. They use a standard costing system. Last year the company...

Likert company manufactures extremely accurate scales. They use a standard costing system. Last year the company projected that 301,000 scales would be produced. When Likert company closed out manufacturing overhead, they recorded a $103,000 debit to the FOH Budget Variance and a $118,000 credit to the FOH Volume Variance. Likert company budgeted $2,418,000 of fixed overhead. What was the actual amount of fixed overhead? Jordan Company produces basketballs and uses a standard costing system. Budgeted fixed overhead was $300,000. Rent...
QUESTION 7 Likert company manufactures extremely accurate scales. They use a standard costing system. Last year...

QUESTION 7 Likert company manufactures extremely accurate scales. They use a standard costing system. Last year the company projected that 290,000 scales would be produced. When Likert company closed out manufacturing overhead, they recorded a $116,000 debit to the FOH Budget Variance and a $135,000 credit to the FOH Volume Variance. Likert company budgeted $2,409,000 of fixed overhead. What was the actual amount of fixed overhead? QUESTION 8 If a firm uses direct labor hours as its overhead driver, a...
QUESTION 1 Jordan Company produces basketballs and uses a standard costing system. Budgeted fixed overhead was...

QUESTION 1 Jordan Company produces basketballs and uses a standard costing system. Budgeted fixed overhead was $300,000. Rent changed during the year, causing actual fixed overhead to be $269,000. Jordan Company applies overhead on the basis of DLH. They projected 1,000,000 basketballs would be produced during the year. They actually produced 1,267,000 basketballs. The standard is 1 DLH/basketball. They actually used 1 DLH/basketball. What is the fixed overhead volume variance? (Please indicate overapplied fixed overhead with the letter "o" and...

Li Pong company uses a standard costing system. Last year they incurred $100,000 of Variable Overhead...

Li Pong company uses a standard costing system. Last year they incurred $100,000 of Variable Overhead and $317,000 of Fixed Overhead and had the following variances before closing entries. FOH Budget Variance $2,000 F FOH Volume Variance $2,000 U VOH Spending Variance $9,000 F VOH Efficiency Variance - $3,000 U How much overhead was applied to inventory over the course of the year? (Answer in dollars) Druid Company makes a single product and uses a standard costing system that applies...
QUESTION 4 Li Pong company uses a standard costing system. Last year they incurred $100,000 of Variable Overhead an...

QUESTION 4 Li Pong company uses a standard costing system. Last year they incurred $100,000 of Variable Overhead and $302,000 of Fixed Overhead and had the following variances before closing entries. FOH Budget Variance -$8,000 F FOH Volume Variance - $9,000 U VOH Spending Variance -$8,000 F VOH Efficiency Variance - $1,000 U How much overhead was applied to inventory over the course of the year? (Answer in dollars)
QUESTION 10 Jordan Company produces basketballs and uses a standard costing system. Budgeted fixed overhead was...

QUESTION 10 Jordan Company produces basketballs and uses a standard costing system. Budgeted fixed overhead was $300,000. Rent changed during the year, causing actual fixed overhead to be $334,000. Jordan Company applies overhead on the basis of DLH. They projected 1,000,000 basketballs would be produced during the year. They actually produced 1,296,000 basketballs. The standard is 1 DLH/basketball. They actually used 1 DLH/basketball. What is the fixed overhead volume variance? (Please indicate overapplied fixed overhead with the letter "o" and...

QUESTION 4 ABC Company uses a standard absorption costing system that allocates overhead on the basis...

QUESTION 4 ABC Company uses a standard absorption costing system that allocates overhead on the basis of direct labor hours. Here is their Statement of Gross Margin: Statement of Gross Margin Standard Revenue 1,000,000 Sales price variance (30,000) Sales volume variance 60,000 Net revenue 1,030,000 CGS @ Standard 700,000 Total direct labor variance 30,000 Direct materials price variance (50,000) Direct materials quantity variance 40,000 Fixed overhead budget variance 50,000 Fixed overhead volume variance (100,000) Variable overhead spending variance 20,000 Variable...
Headsound manufactures headphone cases. During September 2018, the company produced and sold 108,000 cases and recorded...

Headsound manufactures headphone cases. During September 2018, the company produced and sold 108,000 cases and recorded the following cost data: (Click the icon to view the cost data.) Read the requirements Data Table Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direc actual quantity: FOH = fixed overhead: SC = standard cost; SQ = standard quantity.) Standard...
Smith Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Smith allocates...

Smith Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Smith allocates overhead based on yards of direct materials. The company's performance report includes the following selected data: (Click the icon to view the selected data.) Read the requirements Requirement 1. Prepare a flexible budget based on the actual number of recliners sold. (Round budget amounts per unit to the nearest cent.) 980 Smith Recliners Flexible Budget Budget Amounts per Unit Actual Units (Recliners) Sales Revenue...

select from formulas given above Headsound manufactures headphone cases. During September 2018, the company produced and...

select from formulas given above Headsound manufactures headphone cases. During September 2018, the company produced and sold 108,000 cases and recorded the following cost data: (Click the icon to view the cost data) Read the requirements. Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U)....

QUESTION 7 Likert company manufactures extremely accurate scales. They use a standard costing system. Last year...

Homework Answers