Oriole Company is evaluating its performance at year-end within its variable costing system. The company uses standard costing and budgeted for $16,300 of fixed-MOH costs to support budgeted production of 2,800 units. The purchasing department couldn't get its hands on as many raw materials as it had hoped, so production was only 2,200 units this year. Variable manufacturing costs and variable operating costs were on-budget at $21 per unit and $2 per unit, respectively. Fortunately, the company sold all of this year's production plus its entire FG Inventory of 400 units from the prior year. This year's unit costs were the same as last year's. How much will Oriole report for its COGS this year? Will the company recognize a fixed-MOH volume variance this year? If there is a fixed-MOH volume variance, specify the amount and the sign. (Do not leave any answer field blank. Enter O for amounts.) COGS Fixed-MOH volume variance $ $
Oriole Company is evaluating its performance at year-end within its variable costing system. The company uses standard costing and budgeted for $16,300 of fixed-MOH costs to support budgeted production of 2,800 units. The purchasing department couldn't get its hands on as many raw materials as it had hoped, so production was only 2,200 units this year. Variable manufacturing costs and variable operating costs were on-budget at $21 per unit and $2 per unit, respectively. Fortunately, the company sold all of this year's production plus its entire FG Inventory of 400 units from the prior year. This year's unit costs were the same as last year's. How much will Oriole report for its COGS this year? Will the company recognize a fixed-MOH volume variance this year? If there is a fixed-MOH volume variance, specify the amount and the sign. (Do not leave any answer field blank. Enter O for amounts.) COGS Fixed-MOH volume variance $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
Do not give answer in image
Transcribed Image Text:Oriole Company is evaluating its performance at year-end within its variable costing system. The company uses standard costing and
budgeted for $16,300 of fixed-MOH costs to support budgeted production of 2,800 units. The purchasing department couldn't get its
hands on as many raw materials as it had hoped, so production was only 2,200 units this year. Variable manufacturing costs and
variable operating costs were on-budget at $21 per unit and $2 per unit, respectively.
Fortunately, the company sold all of this year's production plus its entire FG Inventory of 400 units from the prior year. This year's unit
costs were the same as last year's. How much will Oriole report for its COGS this year? Will the company recognize a fixed-MOH
volume variance this year? If there is a fixed-MOH volume variance, specify the amount and the sign. (Do not leave any answer field
blank. Enter O for amounts.)
COGS
Fixed-MOH volume variance
$
$
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education