Four OH variances; journal entriesKemp Manufacturing set 42,000 direct labor hours as the annual capacity measure for computing its predetermined variable overhead rate. At that level, budgeted variable overhead costs are $189,000. Kemp will apply budgeted fixed overhead of $84,240 on the basis of 2,340 budgeted machine hours for the year. Both machine hours and fixed overhead costs are expected to be incurred evenly each month.During March, Kemp incurred 3,540 direct labor hours and 180 machine hours. Actual variable and fixed overhead were $15,795 and $6,840, respectively. The standard times allowed for March production were 3,588 direct labor hours and 174 machine hours.a. Using the four-variance approach, determine the overhead variances for March.Note: Do not use negative signs with your answers.VOH Spending VarianceActual VOH-Budgeted VOH=VOH Spending Variance Answer-Answer=AnswerAnswerFUNeither F or UVOH Efficiency VarianceBudgeted VOH-Applied VOH=VOH Efficiency Variance Answer-Answer=AnswerAnswerFUNeither F or UFOH Spending VarianceActual FOH-Budgeted FOH=FOH Spending Variance -Answer=AnswerAnswerFUNeither F or UFOH Volume VarianceBudgeted FOH-Applied FOH=FOH Volume Variance - = b . Prepare all journal entries related to overhead for Kemp Manufacturing for March.Note: Record any multiple debits or any multiple credits in alphabetical order by account name.AccountDebitCreditAnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory To record actual overhead cost for March AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory To apply overhead to work in process for March AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory To record variable overhead variances for March AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory To record fixed overhead variances for March

Name: Four OH variances; journal entriesKemp Manufacturing set 42,000 direct
Uploaded: 2024-03-20T06:33:06.000Z
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Description: Four OH variances; journal entriesKemp Manufacturing set 42,000 direct labor hours as the annual capacity measure for computing its predetermined variable overhead rate. At that level, budgeted variable overhead costs are $189,000. Kemp will apply bu

Question

Four OH variances; journal entriesKemp Manufacturing set 42,000 direct labor hours as the annual capacity measure for computing its predetermined variable overhead rate. At that level, budgeted variable overhead costs are $189,000. Kemp will apply budgeted fixed overhead of $84,240 on the basis of 2,340 budgeted machine hours for the year. Both machine hours and fixed overhead costs are expected to be incurred evenly each month.During March, Kemp incurred 3,540 direct labor hours and 180 machine hours. Actual variable and fixed overhead were $15,795 and $6,840, respectively. The standard times allowed for March production were 3,588 direct labor hours and 174 machine hours.a. Using the four-variance approach, determine the overhead variances for March.Note: Do not use negative signs with your answers.VOH Spending VarianceActual VOH-Budgeted VOH=VOH Spending Variance Answer-Answer=AnswerAnswerFUNeither F or UVOH Efficiency VarianceBudgeted VOH-Applied VOH=VOH Efficiency Variance Answer-Answer=AnswerAnswerFUNeither F or UFOH Spending VarianceActual FOH-Budgeted FOH=FOH Spending Variance  -Answer=AnswerAnswerFUNeither F or UFOH Volume VarianceBudgeted FOH-Applied FOH=FOH Volume Variance  - =   b . Prepare all journal entries related to overhead for Kemp Manufacturing for March.Note: Record any multiple debits or any multiple credits in alphabetical order by account name.AccountDebitCreditAnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork           in Process Inventory  AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork           in Process Inventory  AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork           in Process Inventory  To record actual overhead cost for March  AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork           in Process Inventory  AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork           in Process Inventory  AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork           in Process Inventory  To apply overhead to work in process for March  AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork           in Process Inventory  AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork           in Process Inventory  AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork           in Process Inventory  To record variable overhead variances for March  AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork           in Process Inventory  AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork           in Process Inventory  AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork           in Process Inventory  To record fixed overhead variances for March

Accepted Answer

Workings:
Budgeted VOH=$189,00042,000 DL×3,540 DL=$15,930
Applied VOH=$189,00042,000 DL×3,588…

VOH Spending Variance
Actual VOH	-	Budgeted VOH	=	VOH Spending Variance
Answer	-	Answer	=	Answer	AnswerFUNeither F or U

VOH Efficiency Variance
Budgeted VOH	-	Applied VOH	=	VOH Efficiency Variance
Answer	-	Answer	=	Answer	AnswerFUNeither F or U

FOH Spending Variance
Actual FOH	-	Budgeted FOH	=	FOH Spending Variance
	-	Answer	=	Answer	AnswerFUNeither F or U

Account	Debit	Credit
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory
To record actual overhead cost for March
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory
To apply overhead to work in process for March
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory
To record variable overhead variances for March
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory
AnswerCost of Good SoldFixed Manufacturing Overhead ControlFixed Manufacturing Overhead Spending VarianceVariable Manufacturing Overhead ControlVariable Overhead Efficiency VarianceVariable Overhead Spending VarianceVarious accountsVolume VarianceWork in Process Inventory
To record fixed overhead variances for March