Core Technology Company's operational management team is assessing a productionminusvolume variance. Budgeted fixed overhead cost is...
Core Technology Company's operational management team is assessing a productionminusvolume variance. Budgeted fixed overhead cost is $390,000. Using past data, one unit of output is budgeted to take 2.0 machine hours and fixed overhead is allocated to actual output at the rate of $20 per machine hour. The actual output is 10,000 units. Required Compute the productionminusvolume variance for this period and indicate whether the value indicates a favorable, F, or an unfavorable, U, variance.
Homework Answers
Answer
- Correct Answer:
production Volume Variance = $ 10,000 favourable
Working—
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Fixed Overhead Production Volume Variance |
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( |
Standard Fixed Overhead or Fixed Overhead absorbed = 10000 units x 2 hrs x $ 20 |
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Budgeted Fixed Overhead |
) |
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( |
$ 400,000.00 |
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$ 390,000.00 |
) |
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10000 |
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Variance |
10000 |
Favourable-F |
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Core Technology Company's operational management team is
assessing a productionminusvolume variance. Budgeted fixed overhead
cost is...
The following information relating to a company's overhead costs is available. Budgeted fixed overhead rate per...
The following information relating to a company's overhead costs is available. Budgeted fixed overhead rate per machine hour Actual variable overhead Budgeted variable overhead rate per machine hour Actual fixed overhead Budgeted hours allowed for actual output achieved $ 2.00 $95,000 $ 2.00 $20,000 41,000 Based on this information, the total overhead variance is: Multiple Choice $13,000 favorable. o $49,000 favorable. o $36,000 unfavorable. o O $49,000 $49,000 unfavorable. o
Cholla Company's standard fixed overhead rate is based on budgeted fixed manufacturing overhead of $10,600 and...
Cholla Company's standard fixed overhead rate is based on budgeted fixed manufacturing overhead of $10,600 and budgeted production of 34,000 units. Actual results for the month of October reveal that Cholla produced 30,000 units and spent $11,1000 on fixed manufacturing overhead costs. Calculate Cholla's fixed overhead spending variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) Fixed Overhead Spending Variance
Under a two-variance breakdown (decomposition) of the total factory overhead variance, the fixed overhead production volume...
Under a two-variance breakdown (decomposition) of the total
factory overhead variance, the fixed overhead production volume
variance, to the nearest whole dollar, is:
Multiple Choice
$400 favorable.
$600 unfavorable.
$1,400 favorable.
$1,400 unfavorable.
$2,000 favorable.
b.
Under a two-variance breakdown (decomposition) of the total
factory overhead variance, the total flexible-budget variance, to
the nearest whole dollar, is:
Multiple Choice
$400 favorable.
$600 unfavorable.
$1,400 favorable.
$1,400 unfavorable.
$2,000 favorable.
The following information for the past year is available from Thinnews...
Norwall Company's budgeted variable manufacturing overhead cost is $1.25 per machine-hour and its budgeted fixed manufacturing...
Norwall Company's budgeted variable manufacturing overhead cost is $1.25 per machine-hour and its budgeted fixed manufacturing overhead is $93,312 per month The following information is available for a recent month: a. The denominator activity of 25,920 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 25,920 machine-hours, the company should produce 9,600 units of product. c. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual...
Norwall Company's budgeted variable manufacturing overhead cost is $1.40 per machine-hour and its budgeted fixed manufacturing...
Norwall Company's budgeted variable manufacturing overhead cost is $1.40 per machine-hour and its budgeted fixed manufacturing overhead is $77,350 per month. The following information is available for a recent month: a. The denominator activity of 22,750 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 22,750 machine-hours, the company should produce 9,100 units of product. c. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual...
Norwall Company's budgeted variable manufacturing overhead cost is $1.30 per machine-hour and its budgeted fixed manufacturing...
Norwall Company's budgeted variable manufacturing overhead cost is $1.30 per machine-hour and its budgeted fixed manufacturing overhead is $30,624 per month. The following information is available for a recent month: a. The denominator activity of 9,570 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 9,570 machine-hours, the company should produce 3,300 units of product. c. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual...
Norwall Company's budgeted variable manufacturing overhead cost is $1.90 per machine-hour and its budgeted fixed manufacturing...
Norwall Company's budgeted variable manufacturing overhead cost is $1.90 per machine-hour and its budgeted fixed manufacturing overhead is $87,000 per month. The following information is available for a recent month: a. The denominator activity of 34,800 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 34,800 machine-hours, the company should produce 12,000 units of product. c. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual...
Norwall Company's budgeted variable manufacturing overhead cost is $1.20 per machine-hour and its budgeted fixed manufacturing...
Norwall Company's budgeted variable manufacturing overhead cost is $1.20 per machine-hour and its budgeted fixed manufacturing overhead is $105,966 per month. The following information is available for a recent month: a. The denominator activity of 33,640 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 33,640 machine-hours, the company should produce 11,600 units of product. c. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual...
Norwall Company's budgeted variable manufacturing overhead cost is $1.80 per machine-hour and its budgeted fixed manufacturing...
Norwall Company's budgeted variable manufacturing overhead cost is $1.80 per machine-hour and its budgeted fixed manufacturing overhead is $54,868 per month. The following information is available for a recent month: a. The denominator activity of 25,520 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 25,520 machine-hours, the company should produce 11,600 units of product. c. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual...
Norwall Company's budgeted variable manufacturing overhead cost is $1.90 per machine-hour and its budgeted fixed manufacturing...
Norwall Company's budgeted variable manufacturing overhead cost is $1.90 per machine-hour and its budgeted fixed manufacturing overhead is $87,000 per month. The following information is available for a recent month: a. The denominator activity of 34,800 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 34,800 machine-hours, the company should produce 12,000 units of product. c. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual...
The following information relating to a company's overhead costs is available. Budgeted fixed overhead rate per machine hour Actual variable overhead Budgeted variable overhead rate per machine hour Actual fixed overhead Budgeted hours allowed for actual output achieved $ 2.00 $95,000 $ 2.00 $20,000 41,000 Based on this information, the total overhead variance is: Multiple Choice $13,000 favorable. o $49,000 favorable. o $36,000 unfavorable. o O $49,000 $49,000 unfavorable. o
Cholla Company's standard fixed overhead rate is based on budgeted fixed manufacturing overhead of $10,600 and budgeted production of 34,000 units. Actual results for the month of October reveal that Cholla produced 30,000 units and spent $11,1000 on fixed manufacturing overhead costs. Calculate Cholla's fixed overhead spending variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) Fixed Overhead Spending Variance
Under a two-variance breakdown (decomposition) of the total
factory overhead variance, the fixed overhead production volume
variance, to the nearest whole dollar, is:
Multiple Choice
$400 favorable.
$600 unfavorable.
$1,400 favorable.
$1,400 unfavorable.
$2,000 favorable.
b.
Under a two-variance breakdown (decomposition) of the total
factory overhead variance, the total flexible-budget variance, to
the nearest whole dollar, is:
Multiple Choice
$400 favorable.
$600 unfavorable.
$1,400 favorable.
$1,400 unfavorable.
$2,000 favorable.
The following information for the past year is available from Thinnews...
Norwall Company's budgeted variable manufacturing overhead cost is $1.25 per machine-hour and its budgeted fixed manufacturing overhead is $93,312 per month The following information is available for a recent month: a. The denominator activity of 25,920 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 25,920 machine-hours, the company should produce 9,600 units of product. c. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual...
Norwall Company's budgeted variable manufacturing overhead cost is $1.40 per machine-hour and its budgeted fixed manufacturing overhead is $77,350 per month. The following information is available for a recent month: a. The denominator activity of 22,750 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 22,750 machine-hours, the company should produce 9,100 units of product. c. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual...
Norwall Company's budgeted variable manufacturing overhead cost is $1.30 per machine-hour and its budgeted fixed manufacturing overhead is $30,624 per month. The following information is available for a recent month: a. The denominator activity of 9,570 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 9,570 machine-hours, the company should produce 3,300 units of product. c. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual...
Norwall Company's budgeted variable manufacturing overhead cost is $1.90 per machine-hour and its budgeted fixed manufacturing overhead is $87,000 per month. The following information is available for a recent month: a. The denominator activity of 34,800 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 34,800 machine-hours, the company should produce 12,000 units of product. c. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual...
Norwall Company's budgeted variable manufacturing overhead cost is $1.20 per machine-hour and its budgeted fixed manufacturing overhead is $105,966 per month. The following information is available for a recent month: a. The denominator activity of 33,640 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 33,640 machine-hours, the company should produce 11,600 units of product. c. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual...
Norwall Company's budgeted variable manufacturing overhead cost is $1.80 per machine-hour and its budgeted fixed manufacturing overhead is $54,868 per month. The following information is available for a recent month: a. The denominator activity of 25,520 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 25,520 machine-hours, the company should produce 11,600 units of product. c. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual...
Norwall Company's budgeted variable manufacturing overhead cost is $1.90 per machine-hour and its budgeted fixed manufacturing overhead is $87,000 per month. The following information is available for a recent month: a. The denominator activity of 34,800 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 34,800 machine-hours, the company should produce 12,000 units of product. c. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual...
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