Overhead information for Wilts Company is presented.•Actual fixed overhead, $11,550Actual variable overhead, $6,040Budgeted fixed overhead, $11,725.Variable overhead rate, $0.90.Fixed overhead rate, $1.75•Normal capacity hours, 6,700Standard hours allowed, 6.600Determine the overhead controllable and the overhead volume variances. Indicate whether they are favorable or unfavorable.Overhead controllable varianceOverhead volume variance

Name: Overhead information for Wilts Company is presented.•Actual fixed ove
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Description: Overhead information for Wilts Company is presented.•Actual fixed overhead, $11,550Actual variable overhead, $6,040Budgeted fixed overhead, $11,725.Variable overhead rate, $0.90.Fixed overhead rate, $1.75•Normal capacity hours, 6,700Standard hours a

Variance analysis is a management tool used to evaluate and measure the difference between planned…

Answered: Determine the overhead controllable and…

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Determine the overhead controllable and the overhead volume variances. Indicate whether they are favorable or unfavorable. Overhead controllable variance $ Overhead volume variance

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 27BEA: Rath Company showed the following information for the year: Required: 1. Calculate the standard...

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Following information has been obtained from the records of a manufacturing organisation using the standard costing system. Standard Actual Production (units) Working days Fixed overheads ($) Variable overheads ($) 4,000 3,800 20 21 40,000 39,000 12,000 12,000 You are required to calculate the following overhead variances : (1) (1I) Fixed overhead variances : (a) Expenditure variances; (b) Volume Variances; (c) Efficiency variances; (d) Calendar variances. Variable overheads variance;
Required information (The following information applies to the questions displayed below.] Mosaic Company applies overhead using machine hours and shows the following information. Actual hours of machine use Standard hours of machine use (for actual production) Actual variable overhead rate per machine hour Standard variable overhead rate per machine hour 5,500 hours 6,000 hours $5.10 Compute the variable overhead variance and identify it as favorable or unfavorable. Actual Cost Standard Cost
Requirement 1. Record Brookman's direct labor journal entry (use Wages Payable). Journalize the incurrence and assignment of direct labor costs, including the related variances. (Prepare a single compound journal entry. Record debits first, then credits. Select the explanations on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit - X Data Table AC x AQ SC x AQ SC x SQ $13.00 per DLHr $16.00 per DLHR $16.00 per DLHr 1,650 DLHF 1,650 DLHR 1.200 DLHr $21,450 $26.400 $19,200 Requirements 1. Record Brookman's direct labor journal entry (use Wages Payable). 2. Explain what management will do with this variance information. Cost Efficiency Variance Variance $4.950 F S7,200 U Print Done Print Done
At the end of the period, the factory overhead account has a credit balance of 10,000. (a) Is the total factory cost variance favorable or unfavorable? (b) Are the controllable and volume variances favorable or unfavorable?
Rath Company showed the following information for the year: Required: 1. Calculate the standard direct labor hours for actual production. 2. Calculate the applied variable overhead. 3. Calculate the total variable overhead variance.
Mosaic Company applies overhead using machine hours and reports the following information. Compute the total variable overhead cost variance and classify it as favorable or unfavorable. Actual machine hours used . 4,700 hours Standard machine hours (for actual production) 5,000 hours Actual variable overhead rate per hour $4.15 Standard variable overhead rate per hour . $4.00
Fixed Overhead Spending and Volume Variances, Columnar and Formula Approaches Branch Company provided the following information: Standard fixed overhead rate (SFOR) per direct labor hour $5.00 Actual fixed overhead $305,000 BFOH $300,000 Actual production in units 16,000 Standard hours allowed for actual units produced (SH) 64,000 Required Enter amounts as positive numbers and select Favorable (F) or Unfavorable(U). 1. Using the columnar approach, calculate the fixed overhead spending and volume variances. (1) (2) (3) fill in the blank 4 fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 9 Spending Volume 2. Using the formula approach, calculate the fixed overhead spending variance. $fill in the blank 11 3. Using the formula approach, calculate the fixed overhead volume variance. $fill in the blank 13 4. Calculate the total fixed overhead variance. $fill in the blank…
Manufacturing overhead data for the production of Product H by Shakira Company, assuming the company uses a standard cost system, are as follows. Overhead incurred for 46,000 actual direct labor hours worked $373,200 Overhead rate (variable $7; fixed $1) at normal capacity of 50,700 direct labor hours $8 Standard hours allowed for work done 46,750 Compute the total overhead variance. Total overhead variance $enter the total overhead variance in dollars select an option Neither favorable nor unfavorableFavorableUnfavorable
Question 2a) Refer to the information in Question 1 for data. Now, assume that Juju has decided to use a plantwide overhead rate based on the direct labor hours.Required:i) Calculate the predetermined plantwide overhead rate. (Note: Round to the nearest cent.)ii) Calculate the overhead applied to production for the month of Jun.iii) Calculate the overhead variance for the month of Jun
Manufacturing overhead data for the production of Product H by Concord Company, assuming the company uses a standard cost system, are as follows. Overhead incurred for 66,560 actual direct labor hours worked $336,640 Overhead rate (variable $3; fixed $2) at normal capacity of 69.120 direct labor hours $5 Standard hours allowed for work done 66,560 Compute the total overhead variance. Total overhead variance
The records of Heritage Home Supplies show the following for July. Standard direct labor-hours allowed per unit of output Standard variable overhead rate per standard direct labor-hour Good unita produced Actual direct labor-hours worked Actual total direct labor cost 632 3,560 13,775 $ 504,000 Direct labor efficiency variance Actual variable overhead $ 17.2987 $ 440,800 Required: Compute the direct labor and variable overhead price and efficiency varlances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" fo unfavorable. If there is no effect, do not select either option. Direct labor: Price variance Efficiency variance Variable overhead: Price variance Efficiency variance
Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following information for its most recent year: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours Actual direct labor-hours Standard direct labor-hours allowed for the actual output What is the fixed overhead volume variance? Multiple Choice O $20,000 U $20,000 F $9,000 U $9,000 F $ 300,000 $ 276,000 60,000 56,000 58, 200