Question

Palatino Lim, Aa A 2! Ratib d ibebate abCCDE ABOOD AaBbí obce No Spacing Heading 1 Heading 2 Suatie 106 die Eros CD A Enghave ve Acte 14 stro n g styes Sentity 2) Different management levels in Bates, Inc., require varying degrees of managerial accounting information. Because of the need to comply with the managers' requests, four different variances for manufacturing overhead are computed each month. The information for the September overhead expenditures is as follows: Budgeted output units 6,400 units Budgeted fixed manufacturing overhead $25,600 Budgeted variable manufacturing overhead $3 per direct labor hour Budgeted direct manufacturing labor hours 2 hours per unit Fixed manufacturing costs incurred $27,000 Direct manufacturing labor hours used 12,000 Variable manufacturing costs incurred $35,600 Actual units manufactured 6,500 Allocated: Budgeted Input Qty. Allowed for Actual Output Budgeted Rate Production Variance Required: Compute a 4-variance analysis for the plant controller. Actual Input Qty. Flexible Budget Budgeted Input Qty. |Actual Spending Budgeted Efficiency for Allowed Output Results Variance Rate Variance Budgeted Rate Units Actual or Budgeted Input Qty. Variable Overhead Never a Fixed Variance Overhead Never a Variance

Answer 1

Variance analysis for plant controller

	Actual results	spending variance	actual input qty × budgeted rate	efficiency variance	flexible budget flexible budgeted input qty for actual output × budgeted rate	production variance	allocated: budget input qty allowed for actual output ×budgeted rate
Units	6500	0	6500	0	6500	100F	6400
Actual or budgeted input quantity	12000	0	12000	1000F	13000	200U	12800
Variable overhead	35600	400F	36000	3000F	39000		38400
Fixed overhead	27000	3000U	24000		24000	1600F	25600