The following data for November have been provided by Hunn Corporation, a producer of precision drills for oil exploration: Budgeted production Standard machine-hours per drill Standard indirect labor Standard power Actual production Actual machine-hours Actual indirect labor Actual power Indirect labor Power 4,100 drills Variable Overhead Rate Variance 9.4 machine-hours $ 9.20 per machine-hour $ 2.80 per machine-hour 4,300 drills 35,750 machine-hours Required: Compute the variable overhead rate variances for indirect labor and for power for November. Indicate whether each of the variances is favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) $ 333,520 $ 96,788

The following data for November have been provided by Hunn Corporation, a producer of precision drills for oil exploration: Budgeted production Standard machine-hours per drill Standard indirect labor Standard power Actual production Actual machine-hours Actual indirect labor Actual power Indirect labor Power 4,100 drills Variable Overhead Rate Variance 9.4 machine-hours $ 9.20 per machine-hour $ 2.80 per machine-hour 4,300 drills 35,750 machine-hours Required: Compute the variable overhead rate variances for indirect labor and for power for November. Indicate whether each of the variances is favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) $ 333,520 $ 96,788

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Description: Please do not give solution in image format thanku The following data for November have been provided by Hunn Corporation, a producer of precision drills for oil exploration:Budgeted production4,100 drillsStandard machine-hours per drillStandard indi

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 3CE: Refer to Cornerstone Exercise 9.1. Guillermos Oil and Lube Company provided the following...

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Lochner Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for June. Fixed Element per Month Variable Element per Well Serviced Actual Total for June Revenue $ 5,600 $ 148,000 Employee salaries and wages $ 40,600 $ 1,200 $ 73,700 Servicing materials $ 500 $ 13,600 Other expenses $ 42,800 $ 43,300 When the company prepared its planning budget at the beginning of June, it assumed that 24 wells would have been serviced. However, 26 wells were actually serviced during June. The activity variance for revenue for June would have been closest to: $13,600 U $11,200 U $13,600 F $11,200 F
Lochner Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for June. Fixed Element per Month Variable Element per Well Serviced Actual Total for June Revenue $ 5,600 $ 148,000 Employee salaries and wages $ 40,600 $ 1,200 $ 73,700 Servicing materials $ 500 $ 13,600 Other expenses $ 42,800 $ 43,300 When the company prepared its planning budget at the beginning of June, it assumed that 24 wells would have been serviced. However, 26 wells were actually serviced during June. The revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for June would have been closest to: Multiple Choice $2,400 U $13,600 U $2,400 F $13,600 F
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Refer to Cornerstone Exercise 9.1. Guillermos Oil and Lube Company provided the following information for the production of oil changes during the month of June: Actual number of oil changes performed: 980 Actual number of direct labor hours worked: 386 hours Actual rate paid per direct labor hour: 14.50 Standard rate per direct labor hour: 14.00 Required: 1. Calculate the direct labor rate variance (LRV) and the direct labor efficiency variance (LEV) for June using the formula approach. 2. Calculate the direct labor rate variance (LRV) and the direct labor efficiency variance (LEV) for June using the graphical approach. 3. Calculate the total direct labor variance for oil changes for June. 4. What if the actual wage rate paid in June was 12.40? What impact would that have had on the direct labor rate variance (LRV)? On the direct labor efficiency variance (LEV)?
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