Example: Forster Company gathered the following information on overhead costs for seven months: Actual Month Overhead Variance June $87,500 July 90,200 August 100,500 September 81,300 October 89,400 November 95,000 December 93,600 Standard cost of overhead in each month is $90,000. The allowable deviation from standard is 5%. Fill in the variance amounts for each mont in the above table.

Example: Forster Company gathered the following information on overhead costs for seven months: Actual Month Overhead Variance June $87,500 July 90,200 August 100,500 September 81,300 October 89,400 November 95,000 December 93,600 Standard cost of overhead in each month is $90,000. The allowable deviation from standard is 5%. Fill in the variance amounts for each mont in the above table.

Name: Example: Forster Company gathered the following information on overhe
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Description: Example: Forster Company gathered the following information on overhead costs for seven months:ActualMonthOverheadVarianceJune$87,500July90,200August100,500September81,300October89,400November95,000December93,600Standard cost of overhead in each mon

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Selena Company applies overhead based on direct labor hours and has the following available for November: Standard: Direct labor hours (DLH) per unit Variable overhead per DLH Fixed overhead per DLH (based on 8,900 DLH) Actual Units produced Direct labor hours Variable overhead Fixed overhead 1,800 8,900 $6,400 $17,500 5 $0.75 $1.90 2. Compute all appropriate variances using the four-variance approach. (with SOLUTION)
The following information pertains to Shalom Company's direct labor at the end of the month: Standard direct labor rate per hour 6.30 Favorable direct labor rate variance Actual direct labor-hours Standard direct labor-hours P8,400 20,000 21,000 Determine the variances based on the information above. Indicate as favorable or unfavorable. Format should be: 8,000 F or 8,000 UF No need to indicate if the amount is positive or negative. Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. What is the labor efficiency variance?
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Calculate VariancesThe following summary data relate to the operations of Randolph Company for July, during which 4,500 finished units were produced: Standard Units Costs Total Actual Costs Direct material Standard (0.6 lb. @ $13.00/lb.) $7.80 Actual (3,000 lb. @ $13.30/lb.) $39,900 Direct labor Standard (0.8 hr. @ $16.80/hr.) $13.44 Actual (3,800 hrs. @ $16.40/hr.) 62,320 Variable overhead Standard (0.8 hr. @ $11.50/hr.) $9.20 Actual - 46,100 Total $30.44 $148,320 Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials Variances Actual cost: Answer Split cost: Answer Standard cost: Answer Materials price Answer Answer Materials efficiency Answer Answer Labor Variances Actual cost: Answer Split cost:…
The following materials standards have been established for a particular product: Standard quantity per unit: 6.2 feet $ Stand price per foot: 13.60 The following data pertain to operations concerning the product for the last month: Actual materials purchased: 1,000 feet Actual cost of materials purchased: $ 13,300.00 Actual materials used in production: 400 feet Actual output: 60 units What is the materials price variance for the month? What is the materials quantity variance for the month?
Standish Company manufactures consumer products and provided the following informationfor the month of February: Units produced 131,000Standard direct labor hours per unit 0.20Standard variable overhead rate (per direct labor hour) $3.40Actual variable overhead costs $88,670Actual hours worked 26,350 Required:1. Calculate the total variable overhead variance.2. What if actual production had been 129,600 units? How would that affect the total variableoverhead variance?
Your Company's cost formula for its wages and salaries is $2,900 per month plus $475 per unit sold. For the month of May, the company planned for activity of 116 units, but the actual level of activity was 117 units. The actual wages and salaries for the month was $56,270. What is the spending variance for wages and salaries in May? O $1,730 F O $1,730 U O $2,205 F O $2,205 U
The following data relate to direct labor costs for the current period: 7,300 hours at $11.40 6,100 hours at $10.80 Standard costs Actual costs The direct labor time variance is Oa. $13,680 unfavorable Ob. $12,960 favorable Oc. $12,960 unfavorable Od. $13,680 favorable
The following labor standards have been established for a particular product: Standard labor hours per unit of output Standard labor rate The following data pertain to operations concerning the product for the last month: Actual hours worked Actual total labor cost Actual output 5,700 hours $ 98,610 4.9 hours $17.20 per hour 1,100 units Required: a. What is the labor rate variance for the month? b. What is the labor efficiency variance for the month? Note: 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.
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Total Labor VarianceRefer to the information for Tico Inc. on the previous page.Required:Calculate the total variance for production labor for the month of April. Tico Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.03hour. During the month of April, 900,000 bottles were produced using 25,200 labor hours@ $15.00. The standard wage rate is $13.50 per hour.