Homework Answers
Solution:
Standard Variable Overhead Rate per hour = Total Budget Variable Overhead $60,000 / Budgeted Direct labor hours 2000
= $30 per DLH
Variable Overhead Spending Variance = Actual Hours x Actual Variable Overhead Rate – Actual Hours x Std variable overhead rate
= $30,000 – (2,000 Hours * $30 per hour)
= $30,000 - $60,000
= $30,000 Favorable
Add Answer to:
QUESTION 8 Druid Company makes a single product and uses a standard costing system that applies...
Druid Company makes a single product and uses a standard costing system that applies overhead on...
Druid Company makes a single product and uses a standard costing system that applies overhead on the basis of direct labor hours. They recently used 2,000 labor hours to produce 400 units. Their static budget indicated expectations of 500 units, 2,000 DLH and $60,000 in variable overhead. Actual VOH totaled $40,000. What was the variable overhead efficiency variance? Please indicate favorable variances with an "f" and unfavorable variances with a "u" (Round to the nearest dollar at the end of...
QUESTION 3 Note the change in numbers from the previous problem. Druid Company makes a single...
QUESTION 3 Note the change in numbers from the previous problem. Druid Company makes a single product and uses a standard costing system that applies overhead on the basis of direct labor hours. They recently used 2,000 labor hours to produce 300 units. Their static budget indicated expectations of 500 units, 3,000 DLH and $60,000 in variable overhead. Actual VOH totaled $30,000. What was the variable overhead efficiency variance? Please indicate favorable variances with an "T and unfavorable variances with...
Li Pong company uses a standard costing system. Last year they incurred $100,000 of Variable Overhead...
Li Pong company uses a standard costing system. Last year they incurred $100,000 of Variable Overhead and $317,000 of Fixed Overhead and had the following variances before closing entries. FOH Budget Variance $2,000 F FOH Volume Variance $2,000 U VOH Spending Variance $9,000 F VOH Efficiency Variance - $3,000 U How much overhead was applied to inventory over the course of the year? (Answer in dollars) Druid Company makes a single product and uses a standard costing system that applies...
QUESTION 1 Jordan Company produces basketballs and uses a standard costing system. Budgeted fixed overhead was...
QUESTION 1 Jordan Company produces basketballs and uses a standard costing system. Budgeted fixed overhead was $300,000. Rent changed during the year, causing actual fixed overhead to be $269,000. Jordan Company applies overhead on the basis of DLH. They projected 1,000,000 basketballs would be produced during the year. They actually produced 1,267,000 basketballs. The standard is 1 DLH/basketball. They actually used 1 DLH/basketball. What is the fixed overhead volume variance? (Please indicate overapplied fixed overhead with the letter "o" and...
QUESTION 4 ABC Company uses a standard absorption costing system that allocates overhead on the basis...
QUESTION 4 ABC Company uses a standard absorption costing system that allocates overhead on the basis of direct labor hours. Here is their Statement of Gross Margin: Statement of Gross Margin Standard Revenue 1,000,000 Sales price variance (30,000) Sales volume variance 60,000 Net revenue 1,030,000 CGS @ Standard 700,000 Total direct labor variance 30,000 Direct materials price variance (50,000) Direct materials quantity variance 40,000 Fixed overhead budget variance 50,000 Fixed overhead volume variance (100,000) Variable overhead spending variance 20,000 Variable...
QUESTION 2 Alpha company makes a single product and uses a standard costing system that applies...
QUESTION 2 Alpha company makes a single product and uses a standard costing system that applies overhead on the basis of direct labor hours. For the most recent period, the VOH spending variance was $80,000 F, and the VOH Efficiency Variance was $100,000 U. The company budgeted making 4,800 units at 3.5 hours each with $924,000 of VOH. The company actually produced 4,000 units. How many direct labor hours were used? (Please round to nearest whole direct labor hour at...
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates...
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 125,000 units requiring 500,000 direct labor hours. (Practical capacity is 520,000 hours.) Annual budgeted overhead costs total $840,000, of which $595,000 is fixed overhead. A total of 119,300 units using 498,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $262,000, and...
QUESTION 7 Likert company manufactures extremely accurate scales. They use a standard costing system. Last year...
QUESTION 7 Likert company manufactures extremely accurate scales. They use a standard costing system. Last year the company projected that 290,000 scales would be produced. When Likert company closed out manufacturing overhead, they recorded a $116,000 debit to the FOH Budget Variance and a $135,000 credit to the FOH Volume Variance. Likert company budgeted $2,409,000 of fixed overhead. What was the actual amount of fixed overhead? QUESTION 8 If a firm uses direct labor hours as its overhead driver, a...
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates...
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 124,000 units requiring 496,000 direct labor hours. (Practical capacity is 516,000 hours.) Annual budgeted overhead costs total $828,320, of which $590,240 is fixed overhead. A total of 119,200 units using 494,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $261,300, and...
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates...
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 126,000 units requiring 504,000 direct labor hours. (Practical capacity is 524,000 hours.) Annual budgeted overhead costs total $811,440, of which $584,640 is fixed overhead. A total of 119,000 units using 502,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $261,500, and...
Druid Company makes a single product and uses a standard costing system that applies overhead on the basis of direct labor hours. They recently used 2,000 labor hours to produce 400 units. Their static budget indicated expectations of 500 units, 2,000 DLH and $60,000 in variable overhead. Actual VOH totaled $40,000. What was the variable overhead efficiency variance? Please indicate favorable variances with an "f" and unfavorable variances with a "u" (Round to the nearest dollar at the end of...
QUESTION 3 Note the change in numbers from the previous problem. Druid Company makes a single product and uses a standard costing system that applies overhead on the basis of direct labor hours. They recently used 2,000 labor hours to produce 300 units. Their static budget indicated expectations of 500 units, 3,000 DLH and $60,000 in variable overhead. Actual VOH totaled $30,000. What was the variable overhead efficiency variance? Please indicate favorable variances with an "T and unfavorable variances with...
Li Pong company uses a standard costing system. Last year they incurred $100,000 of Variable Overhead and $317,000 of Fixed Overhead and had the following variances before closing entries. FOH Budget Variance $2,000 F FOH Volume Variance $2,000 U VOH Spending Variance $9,000 F VOH Efficiency Variance - $3,000 U How much overhead was applied to inventory over the course of the year? (Answer in dollars) Druid Company makes a single product and uses a standard costing system that applies...
QUESTION 2 Alpha company makes a single product and uses a standard costing system that applies overhead on the basis of direct labor hours. For the most recent period, the VOH spending variance was $80,000 F, and the VOH Efficiency Variance was $100,000 U. The company budgeted making 4,800 units at 3.5 hours each with $924,000 of VOH. The company actually produced 4,000 units. How many direct labor hours were used? (Please round to nearest whole direct labor hour at...
Most questions answered within 3 hours.
-
Define Diet counceling? What are the
responsibilities of a counselor?
asked 1 hour ago -
Hey im just confused about how to put the ' A angle n' and ' S...
asked 1 hour ago -
A short essay about the WSJ article on Oreo versus Hydrox.
asked 1 hour ago -
##8. A program contains the following function definition:
##def cube(num):
##return num * num * num...
asked 1 hour ago -
find the value z of a standard Normal variable that satisfies
each of the given conditions....
asked 1 hour ago -
"banana".find('z')
Out[22]: -1
why is this -1
python 3.7
asked 1 hour ago -
Ilegal Consideration Marna Balin was involved in two automobile
accidents in which she suffered severe injures.She...
asked 1 hour ago -
Walk through the operation of QuickSort when n = 7 and the input
array is A...
asked 1 hour ago -
Answer with True or False. Argue the answers
7) The circulation of field B on any...
asked 1 hour ago -
Chase Co. uses the perpetual inventory method. The inventory
records for Chase reflected the following
Jan...
asked 1 hour ago -
what are is the correct compression for these two ipv6 ips.. i
keep getting them wrong...
asked 1 hour ago -
How does the amount of silica gel used change separation?
asked 1 hour ago