Crash Bang, Co. uses a standard cost system and provides the following information:Standards:Static budget variable overhead $5,590.00.Static budget fixed overhead $22,180.00.Static budget direct labor hours 565 hours.Static budget number of units 20,200 units.Static budget direct labor hours 0.016 hours per unit. Crash Bang, Co. allocates manufacturing overhead to production based on standard direct labor hours. Crash Bang, Co. reported the following actual results for 2020:Actual:Number of units produced 21,000.Actual variable overhead $5,220.00Actual fixed overhead $24,370.00.Actual direct labor hours 482. (Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Compute the variable overhead allocation rates.Budgeted VOH?Budgeted allocation base=Standard VOH allocation rate = 2. Calculate the variable overhead cost and efficiency variances.(AC?SC)?AQ=Variable OH Cost VarianceFavorable or Unfavorable = (AQ?SQ)?SC=Variable Overhead Efficiency VarianceFavorable or Unfavorable =

Name: Crash Bang, Co. uses a standard cost system and provides the following
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Description: Crash Bang, Co. uses a standard cost system and provides the following information:Standards:Static budget variable overhead $5,590.00.Static budget fixed overhead $22,180.00.Static budget direct labor hours 565 hours.Static budget number of units 20

Variable overhead allocation rate.Variable overhead allocation rate is the base at which the costs…

Answered: Crash Bang, Co. uses a standard cost…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 17P: Shinto Corp. uses a standard cost system and manufactures one product. The variable costs per...

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Crash Bang, Co. uses a standard cost system and provides the following information:

Standards:

Static budget variable overhead $5,590.00.
Static budget fixed overhead $22,180.00.
Static budget direct labor hours 565 hours.
Static budget number of units 20,200 units.
Static budget direct labor hours 0.016 hours per unit.

Crash Bang, Co. allocates manufacturing overhead to production based on standard direct labor hours. Crash Bang, Co. reported the following actual results for 2020:

Actual:

Number of units produced 21,000.
Actual variable overhead $5,220.00
Actual fixed overhead $24,370.00.
Actual direct labor hours 482.

(Round your answers to two decimal places when needed and use rounded answers for all future calculations).

1. Compute the variable overhead allocation rates.

Budgeted VOH	?	Budgeted allocation base	=	Standard VOH allocation rate
			=

2. Calculate the variable overhead cost and efficiency variances.

(AC	?	SC)	?	AQ	=	Variable OH Cost Variance	Favorable or Unfavorable
					=

(AQ	?	SQ)	?	SC	=	Variable Overhead Efficiency Variance	Favorable or Unfavorable
					=

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