Question

Hamilton, Inc. produces chemicals for large biotech companies. If has the following data for manufacturing overhead costs during August 2017.

                                                      Variable         Fixed
Actual costs incurred              $30,500      $14,500
Costs allocated to products    27,000         14,800
Flexible budget                                --               16,000
Actual input x budgeted rate   31,200             ---

( If no variance exists leave the dollar value blank. Label the variances as a favorable (F), unfavorable (U) or never a variance (N) )

Fill in the blanks.

                                                                 Variable       Fixed
1. Spending variance                             $                   $
2. Efficiency variance           
3. Production- volume variance
4. Flexible- budget variance
5. Underallocated (over allocated)
       manufacturing overhead

Answer 1

Answer: Variable Fixed D spending variance $ 700 (0) $1500 (5) 2) Efficiency variance $4200 (F) - M 3) production - volume variance - $1200 (1) 4) Flexible-budget variance 43500 $) $1500(F) 5) underallocaled cover allocated) Manufacturing overhead. $3500(F) $300 (F) working Note: 1) spending variance :- variable - Actual costs incurred - neuer nixbudget = $30,500 - $ 31,200 $ 700 ) Fired:- Actual costo incurred - Flexible budget : $14,500-$16000 - $1500172 2) Efficiency variance :- Variable = Cactual input x Budgeted rale )-Costa allocated to prodeeds - $31,200-$27000 = $4,200 (6) 3) production Volume variance fixed o Flegible budget- costs allocated to producte. 4) Flexible budget variance :- - $16000-$14,800 = $1200 ) Variable : Actual casts incurred - costs allocated to produda. = $30,500 - $ 27,000 - $3500F) Fized = Actual costs incurred - Flexible budgel = $14,500- $16,000 = $1500C). 5) under en over allocated Hauce pacteering overhead's Acteal costs incurred - costs allocated to produds variable = $30,500-$ 27000 = 3500 (5) fixed . $14.500- 14,800 = $300 (FJ