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Best, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Best allocates manufacturing overhead to production based on standard direct labor hours. Best reported the following actual results for 2024: actual number of units produced, 1,000; actual variable overhead, $3,800; actual fixed overhead, $3,500; actual direct labor hours, 1,400. Read the requirements. Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and favorable (F) or unfavorable (U). (Abbreviations used: AC actual cost; AQ = actual quantity: FOH = fixed overhead; SC standard co = = VOH cost variance VOH efficiency variance Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volun favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity: FOH = fixed overhead; SC = standard co Formula FOH cost variance FOH volume variance B Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is Formula The variable overhead efficiency variance is The fixed overhead cost variance is == = Variance = Variance CITO because the actual cost per direct labor hour was because management used because the total fixed overhead cost was Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours than the standard cost per direct labor hour. Print 4 $2,300 $3,450 1,150 hours. 575 units 2 hours per u Done direct labor hours than standard and variable overhead is applied (incurred) based on direct labor. than the amount budgeted for total fixed overhead.

Best, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Best allocates manufacturing overhead to production based on standard direct labor hours. Best reported the following actual results for 2024: actual number of units produced, 1,000; actual variable overhead, $3,800; actual fixed overhead, $3,500; actual direct labor hours, 1,400. Read the requirements. Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and favorable (F) or unfavorable (U). (Abbreviations used: AC actual cost; AQ = actual quantity: FOH = fixed overhead; SC standard co = = VOH cost variance VOH efficiency variance Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volun favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity: FOH = fixed overhead; SC = standard co Formula FOH cost variance FOH volume variance B Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is Formula The variable overhead efficiency variance is The fixed overhead cost variance is == = Variance = Variance CITO because the actual cost per direct labor hour was because management used because the total fixed overhead cost was Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours than the standard cost per direct labor hour. Print 4 $2,300 $3,450 1,150 hours. 575 units 2 hours per u Done direct labor hours than standard and variable overhead is applied (incurred) based on direct labor. than the amount budgeted for total fixed overhead.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 39BEB: Variable Overhead Spending and Efficiency Variances, Columnar and Formula Approaches Aretha Company...
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个 Best, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Best allocates manufacturing overhead to production based on standard direct labor hours. Best reported the following actual results for 2024: actual number of units produced, 1,000; actual variable overhead, $3,800; actual fixed overhead, $3,500; actual direct labor hours, 1,400. Read the requirements. Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard co VOH cost variance VOH efficiency variance = FOH cost variance FOH volume variance = Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is Formula Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volun favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard co Formula The variable overhead efficiency variance is ▼ The fixed overhead cost variance is = Variance = Variance ... because the actual cost per direct labor hour was because management used because the total fixed overhead cost was Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours than the standard cost per direct labor hour. Print than the amount budgeted for total fixed overhead. $2,300 $3,450 1,150 hours 575 units 2 hours per u Done direct labor hours than standard and variable overhead is applied (incurred) based on direct labor.
Transcribed Image Text:个 Best, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Best allocates manufacturing overhead to production based on standard direct labor hours. Best reported the following actual results for 2024: actual number of units produced, 1,000; actual variable overhead, $3,800; actual fixed overhead, $3,500; actual direct labor hours, 1,400. Read the requirements. Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard co VOH cost variance VOH efficiency variance = FOH cost variance FOH volume variance = Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is Formula Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volun favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard co Formula The variable overhead efficiency variance is ▼ The fixed overhead cost variance is = Variance = Variance ... because the actual cost per direct labor hour was because management used because the total fixed overhead cost was Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours than the standard cost per direct labor hour. Print than the amount budgeted for total fixed overhead. $2,300 $3,450 1,150 hours 575 units 2 hours per u Done direct labor hours than standard and variable overhead is applied (incurred) based on direct labor.
Best, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) variable overhead, $3,800; actual fixed overhead, $3, 500; actual direct labor hours, 1,400. Read the requirements. Data table Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standardco \table [[,, Formula,Variance], [VOH cost variance, = , 1 = , ], [VOH efficiency variance, =,1 =, 0
Transcribed Image Text:Best, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) variable overhead, $3,800; actual fixed overhead, $3, 500; actual direct labor hours, 1,400. Read the requirements. Data table Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standardco \table [[,, Formula,Variance], [VOH cost variance, = , 1 = , ], [VOH efficiency variance, =,1 =, 0
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