In a recent accounting period, Ismail Company experienced a SAR30,000 unfavorable variance for variable production costs....
In a recent accounting period, Ismail Company experienced a SAR30,000 unfavorable variance for variable production costs. Explain the meaning of an unfavorable variance.
Suggest two possible
Homework Answers
Meaning of unfavourable variance: If actual variable production cost is greater than standard variable production cost then the difference is unfavourable.
Possible Reason :
- Rate of the actual variable overhead increased due to increased prices of indirect materials.
- Excess indirect material used. Wastage of indirect materials.
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In a recent accounting period, Ismail Company experienced a
SAR30,000 unfavorable variance for variable production costs....
What is the variable overhead (VOH) spending variance for Terry Company for the period, to the nearest whole dollar? Mu...
What is the variable overhead (VOH) spending variance
for Terry Company for the period, to the nearest whole dollar?
Multiple Choice
$600 favorable.
$800 unfavorable.
$1,000 unfavorable.
$1,400 favorable.
$1,400 unfavorable.
The following information is available from the Terry Company: Actual total factory overhead cost incurred Actual fixed overhead cost incurred Budgeted fixed overhead expenses Actual direct labor hours (DLH) worked Standard DLHs for this period's production (output) Standard variable overhead rate per DLH Standard fixed overhead rate per DLH...
McDormand, Inc., reported a $3,400 unfavorable price variance for variable overhead and a $34,000 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 $2,400 unfavorable price variance for variable overhead and a $24,000 unfavorable price...
McDormand, Inc., reported a $2,400 unfavorable price variance for variable overhead and a $24,000 unfavorable price variance for fixed overhead. The flexible budget had $1,039,200 variable overhead based on 34,640 direct labor-hours; only 34,000 hours were worked. Total actual overhead was $1,790,400. The number of estimated hours for computing the fixed overhead application rate totaled 37,200 hours. Required: a. Prepare a variable overhead analysis. b. Prepare a fixed overhead analysis. Answer is not complete. Complete this question by entering your...
Given for Umbrella Corporation's variable manufacturing overhead costs: $2,500 favorable flexible-budget variance; $2,500 unfavorable efficiency variance....
Given for Umbrella Corporation's variable manufacturing overhead costs: $2,500 favorable flexible-budget variance; $2,500 unfavorable efficiency variance. The spending variance is closest to: a. $0 b. $5,000 F c. $5,000 U d. Indeterminate
Cavern Company's output for the current period results in a $5,250 unfavorable direct material price variance....
Cavern Company's output for the current period results in a $5,250 unfavorable direct material price variance. The actual price per pound is $56 50 and the standard price per pound is $55.00 How many pounds of material are used in the current period? 5,393 5,110 3,500 3,750 4,000. Levelor Company's flexible budget shows $10,710 of overhead at 75% of capacity, which was the operating level achieved during May However, the company applied overhead to production during May at a rate...
Required 2 Required 1 Required 3 Compute the overhead volume variance. Classify as favorable or unfavorable....
Required 2 Required 1 Required 3 Compute the overhead volume variance. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations.) Volume Variance Volume variance Required 1 Required 3 Required 1 Required 2 Required 3 Prepare an overhead variance report at the actual activity level of 9,000 units. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no...
A company's flexible budget for 40,000 units of production showed variable overhead costs of $44,000 and...
A company's flexible budget for 40,000 units of production showed variable overhead costs of $44,000 and fixed overhead costs of $56,000. The company incurred overhead costs of $90,080 while operating at a volume of 32,000 units. The total controllable cost variance is: Multiple Choice $1,120 favorable. $1,120 unfavorable. $9,920 favorable. $9,920 unfavorable. $11,920 favorable.
The Mansfield Company manufactures and sells two lines of fishing rods. During the most recent accounting period, the Pro lin and the Novice line sold 15,000 and 2,000 units, respectively. The...
The Mansfield Company manufactures and sells two lines of fishing rods. During the most recent accounting period, the Pro lin and the Novice line sold 15,000 and 2,000 units, respectively. The company's most recent financial statements are shown below Sales Less cost of goods sold S 900.000 S 240,000 Uni-level production cost Depreciation. production equipment 600,000 135000 50.000 125,000 Gross margin Less operating expenses: $ 175000 S 55000 Unit-level selling and admin Costs Corporate-evel facility expenses (fixed) 65.000 36,000 S...
Reelmates manufactures fishing poles. In a recent month, the company budgeted production of 2,000 poles. Actual...
Reelmates manufactures fishing poles. In a recent month, the company budgeted production of 2,000 poles. Actual production was 2,200. According to the standard cost card, each pole requires 3 feet of fiberglass rod at a cost of $9 per foot. Reelmates used 6,500 feet of rod at a net cost of $65,000 for the period. The total material variance was: Multiple Choice $5,600 unfavorable. $6,500 favorable. $900 unfavorable. $900 favorable.
The master budget at Western Company last period called for sales of 225,000 units at $9 each. The costs were estim...
The master budget at Western Company last period called for sales of 225,000 units at $9 each. The costs were estimated to be $3.75 variable per unit and $225,000 fixed. During the period, actual production and actual sales were 230.000 units. The selling price was $9.10 per unit. Variable costs were $4.50 per unit. Actual fixed costs were $225.000. Required: Prepare a sales activity variance analysis. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for...
What is the variable overhead (VOH) spending variance
for Terry Company for the period, to the nearest whole dollar?
Multiple Choice
$600 favorable.
$800 unfavorable.
$1,000 unfavorable.
$1,400 favorable.
$1,400 unfavorable.
The following information is available from the Terry Company: Actual total factory overhead cost incurred Actual fixed overhead cost incurred Budgeted fixed overhead expenses Actual direct labor hours (DLH) worked Standard DLHs for this period's production (output) Standard variable overhead rate per DLH Standard fixed overhead rate per DLH...
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 $2,400 unfavorable price variance for variable overhead and a $24,000 unfavorable price variance for fixed overhead. The flexible budget had $1,039,200 variable overhead based on 34,640 direct labor-hours; only 34,000 hours were worked. Total actual overhead was $1,790,400. The number of estimated hours for computing the fixed overhead application rate totaled 37,200 hours. Required: a. Prepare a variable overhead analysis. b. Prepare a fixed overhead analysis. Answer is not complete. Complete this question by entering your...
Cavern Company's output for the current period results in a $5,250 unfavorable direct material price variance. The actual price per pound is $56 50 and the standard price per pound is $55.00 How many pounds of material are used in the current period? 5,393 5,110 3,500 3,750 4,000. Levelor Company's flexible budget shows $10,710 of overhead at 75% of capacity, which was the operating level achieved during May However, the company applied overhead to production during May at a rate...
Required 2 Required 1 Required 3 Compute the overhead volume variance. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations.) Volume Variance Volume variance Required 1 Required 3 Required 1 Required 2 Required 3 Prepare an overhead variance report at the actual activity level of 9,000 units. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no...
The Mansfield Company manufactures and sells two lines of fishing rods. During the most recent accounting period, the Pro lin and the Novice line sold 15,000 and 2,000 units, respectively. The company's most recent financial statements are shown below Sales Less cost of goods sold S 900.000 S 240,000 Uni-level production cost Depreciation. production equipment 600,000 135000 50.000 125,000 Gross margin Less operating expenses: $ 175000 S 55000 Unit-level selling and admin Costs Corporate-evel facility expenses (fixed) 65.000 36,000 S...
The master budget at Western Company last period called for sales of 225,000 units at $9 each. The costs were estimated to be $3.75 variable per unit and $225,000 fixed. During the period, actual production and actual sales were 230.000 units. The selling price was $9.10 per unit. Variable costs were $4.50 per unit. Actual fixed costs were $225.000. Required: Prepare a sales activity variance analysis. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for...
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