FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

Question

Hello,

I need help understanding how to solve this problem (attached). Can you please explain it to me?

Thank you,

Anita

4. JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT
estimated variable factory overhead of $600,000 and fixed factory overhead of $400,000. JoyT
uses a standard costing system, and factory overhead is allocated to units produced using
standard direct labor hours. The level of activity budgeted for this year was 10,000 direct labor
hours, and JoyT used 10,300 actual direct labor hours.
Based on the output accomplished during this year, 9,900 standard direct labor hours should
have been used. Actual variable factory overhead was $596,000, and actual fixed factory over-
head was $410,000 for the year. Based on this information, the variable factory overhead
controllable variance for JoyT for this year was:
a. $24,000 unfavorable.
b. $2,000 unfavorable.
c. $4,000 favorable.
d. $22,000 favorable.
expand button
Transcribed Image Text:4. JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT estimated variable factory overhead of $600,000 and fixed factory overhead of $400,000. JoyT uses a standard costing system, and factory overhead is allocated to units produced using standard direct labor hours. The level of activity budgeted for this year was 10,000 direct labor hours, and JoyT used 10,300 actual direct labor hours. Based on the output accomplished during this year, 9,900 standard direct labor hours should have been used. Actual variable factory overhead was $596,000, and actual fixed factory over- head was $410,000 for the year. Based on this information, the variable factory overhead controllable variance for JoyT for this year was: a. $24,000 unfavorable. b. $2,000 unfavorable. c. $4,000 favorable. d. $22,000 favorable.
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education