Michelle Inc. uses a 4-variance analysis of its manufacturing overhead costs, and has the following results for April. A. Budgeted direct labour-hours per unit is used to allocate variable manufacturing overhead. Fixed overhead is allocated on a per unit basis. B. Budgeted amounts for April 2011 are: Direct labour-hours 0.30 /Unit Variable labour-hour overhead rate: $ 20.00 /DLH Fixed manufacturing overhead: $600,000 Budgeted output (denominator level output): 30,000 Units C. Actual amounts for April 2011 are: Variable manufacturing overhead: $340,000 Fixed manufacturing overhead: $590,000 Direct labour-hours: 16,000 hours Actual output: 40,000 Units What is the variable manufacturing overhead efficiency variance using 4-variance analysis? $101,200 favourable $80,000 unfavourable $101,200 unfavourable $80,000 favourable $181,200 favourable

Michelle Inc. uses a 4-variance analysis of its manufacturing overhead costs, and has the following results for April. A. Budgeted direct labour-hours per unit is used to allocate variable manufacturing overhead. Fixed overhead is allocated on a per unit basis. B. Budgeted amounts for April 2011 are: Direct labour-hours 0.30 /Unit Variable labour-hour overhead rate: $ 20.00 /DLH Fixed manufacturing overhead: $600,000 Budgeted output (denominator level output): 30,000 Units C. Actual amounts for April 2011 are: Variable manufacturing overhead: $340,000 Fixed manufacturing overhead: $590,000 Direct labour-hours: 16,000 hours Actual output: 40,000 Units What is the variable manufacturing overhead efficiency variance using 4-variance analysis? $101,200 favourable $80,000 unfavourable $101,200 unfavourable $80,000 favourable $181,200 favourable

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Description: Michelle Inc. uses a 4-variance analysis of its manufacturing overhead costs, and has the following results for April.A. Budgeted direct labour-hours per unit is used to allocate variable manufacturing overhead.Fixed overhead is allocated on a per u

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 11EB: Fitzgerald Company manufactures sewing machines, and they produced 2,500 this past month. The...

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At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing basis are as follows: During the year, the company had the following activity: Actual fixed overhead was 12,000 less than budgeted fixed overhead. Budgeted variable overhead was 5,000 less than the actual variable overhead. The company used an expected actual activity level of 12,000 direct labor hours to compute the predetermined overhead rates. Any overhead variances are closed to Cost of Goods Sold. Required: 1. Compute the unit cost using (a) absorption costing and (b) variable costing. 2. Prepare an absorption-costing income statement. 3. Prepare a variable-costing income statement. 4. Reconcile the difference between the two income statements.
Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450 hours per the standard cost card. Their employees were paid $15.75 per hour for the month of June. The standard cost card uses $15.50 as the standard hourly rate. A. Compute the direct labor rate and time variances for the month of June, and also calculate the total direct labor variance. B. If the standard rate per hour was $16.00, what would change?
Refer to Cornerstone Exercise 8.13. In March, Nashler Company produced 163,200 units and had the following actual costs: Required: 1. Prepare a performance report for Nashler Company comparing actual costs with the flexible budget for actual units produced. 2. What if Nashler Companys actual direct materials cost were 1,175,040? How would that affect the variance for direct materials? The total cost variance?
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A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
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