FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Mosaic Company applies overhead using machine hours and shows the following information.
5,500 hours
6,000 hours
$ 4.85
$ 4.80
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
Compute the variable overhead spending variance and the variable overhead efficiency variance and identify each as favorable or
unfavorable.
AH
5,500
Actual Cost
X
X
$ 26,675
AVR
$ 4.85
Variable overhead efficiency variance
Variable overhead spending variance
$
Flexible Budget
0
0
SH
6,000
Standard Cost
X
X
$ 28,800
$
SVR
4.80
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Transcribed Image Text:Mosaic Company applies overhead using machine hours and shows the following information. 5,500 hours 6,000 hours $ 4.85 $ 4.80 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 Compute the variable overhead spending variance and the variable overhead efficiency variance and identify each as favorable or unfavorable. AH 5,500 Actual Cost X X $ 26,675 AVR $ 4.85 Variable overhead efficiency variance Variable overhead spending variance $ Flexible Budget 0 0 SH 6,000 Standard Cost X X $ 28,800 $ SVR 4.80
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