Question

Check my work Exercise 8-16A (Algo) Calculating the variable overhead variance LO 8-4, 8-5, 8-6 10 points Thornton Company es

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Flexible Budget Variable Overhead Cost Variance = (Standard Variable cost - Actual Variable cost) × Actual Hours.

=> ($9.5 - 8.4) × 78,800 hours

=> $86,680 Favourable.

If you have any doubts please comment on the answer

Add a comment
Know the answer?
Add Answer to:
Check my work Exercise 8-16A (Algo) Calculating the variable overhead variance LO 8-4, 8-5, 8-6 10...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Cheney Company established a predetermined variable overhead cost rate at $21.00 per direct labor hour. The...

    Cheney Company established a predetermined variable overhead cost rate at $21.00 per direct labor hour. The actual variable overhead cost rate was $19.20 per hour. The planned level of labor activity was 76,000 hours of labor. The company actually used 80,000 hours of labor. Required Determine the total flexible budget variable overhead cost variance and indicate the effect of the variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)

  • PA9-1 (Algo) Calculating Direct Material, Direct Labor, Variable Overhead Variances [LO 9-3, 9-4, 9-5] Barley Hopp,...

    PA9-1 (Algo) Calculating Direct Material, Direct Labor, Variable Overhead Variances [LO 9-3, 9-4, 9-5] Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (clay) 1.70 lbs. $ 1.80 per lb. $ 3.06 Direct labor 1.70 hrs. $ 11.00 per hr. 18.70 Variable manufacturing overhead (based on direct labor hours) 1.70 hrs. $ 1.10 per hr. 1.87 Fixed manufacturing overhead ($420,500.00 ÷ 145,000.00 units) 2.90 Barley Hopp...

  • Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct...

    Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct materials: 5 pounds at $8.00 per pound Direct labor: 2 hours at $14 per hour Variable overhead: 2 hours at $5 per hour Total standard cost per unit $ 40.00 28.00 10.00 $78.00 The planning budget for March was based on producing and selling 25,000 units. However, during March the company actually...

  • E9-10 (Algo) Calculating Variable Overhead Variances [LO 9-5] Parker Plastic, Inc., manufactures plastic mats to use...

    E9-10 (Algo) Calculating Variable Overhead Variances [LO 9-5] Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 15 sq ft. $ 0.90 per sq. ft. $ 13.50 Direct labor 0.25 hr. $ 12.60 per hr. 3.15 Variable manufacturing overhead (based on direct labor hours) 0.25 hr. $ 1.80 per hr. 0.45 Fixed manufacturing overhead ($539,400 ÷ 930,000 units)...

  • Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct...

    Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct material: 8 pounds at $10.00 per pound $80.00 Direct labor: 5 hours at $13 per hour 65.00 Variable overhead: 5 hours at $8 per hour 40.00 Total standard variable cost per unit $ 185.00 The company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost...

  • Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct...

    Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour-hours, and its standard costs per unit are as follows:   Direct materials: 5 kg at $10.00 per kg $ 50.00     Direct labour: 3 hours at $14 per hour 42.00     Variable overhead: 3 hours at $4 per hour 12.00     Total standard cost per unit $ 104.00   The company planned to produce and sell 29,000 units in March. However, during March the company actually produced and...

  • Friday November 8 Preble Company manufacturos one product. Its variable manufacturing overhead is applied to production...

    Friday November 8 Preble Company manufacturos one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct material: 5 pounds at $7.00 per pound Direct labor: 3 hours at $16 per hour Variable overhead: 3 hours at $4 per hour Total standard variable cost per unit 35.00 $ 48.00 12.00 $95.00 The company also ostablished the following cost formulas for its selling expenses: Fixed Cost per...

  • Check my Work Preble Company manufactures one product. Its variable manufacturing overhead is applied to production...

    Check my Work Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: $ 45 Direct materials: 5 pounds at $9 per pound Direct labor: 3 hours at $14 per hour Variable overhead: 3 hours at $9 per hour Total standard cost per unit 2 $ 114 The planning budget for March was based on producing and selling 20,000 units. However, during March...

  • Exercise 21-21 Overhead controllable and volume variances; overhead variance report LO P4 James Corp. applies overhead...

    Exercise 21-21 Overhead controllable and volume variances; overhead variance report LO P4 James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget: Operating Levels 80% 10,000 25,000 Overhead Budget Production in units Standard direct labor hours Budgeted overhead Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable costs Fixed overhead costs...

  • Crystal Glassware Company has the following standards and flexible-budget data. Standard variable-overhead rate Standard quantity of...

    Crystal Glassware Company has the following standards and flexible-budget data. Standard variable-overhead rate Standard quantity of direct labor Budgeted fixed overhead Budgeted output $ 6.00 per direct-labor hour 2 hours per unit of output $144,000 24,000 units Actual results for April are as follows: 1 + Actual output Actual variable overhead Actual fixed overhead Actual direct labor 17,000 units $306,000 $141,000 50,000 hours Required: Use the variance formulas to compute the following variances. (Indicate the effect of each variance by...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT