Requirements 1. Compute the variable manufacturing overhead variances. What do each of these variances tell management? 2. Compute the fixed manufacturing overhead variances. What do each of these variances tell management? Requirement 1. Compute the variable manufacturing overhead variances. What do each of these variances tell management? (Enter the variances as positive numbers. Enter the currency amounts in the formulas to the nearest cent, then round the final variance amounts to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U).) Begin by computing the variable manufacturing overhead rate variance. First determine the formula for the rate variance, then compute the rate variance for variable manufacturing overhead. Variable overhead x ( rate variance x (

Requirements 1. Compute the variable manufacturing overhead variances. What do each of these variances tell management? 2. Compute the fixed manufacturing overhead variances. What do each of these variances tell management? Requirement 1. Compute the variable manufacturing overhead variances. What do each of these variances tell management? (Enter the variances as positive numbers. Enter the currency amounts in the formulas to the nearest cent, then round the final variance amounts to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U).) Begin by computing the variable manufacturing overhead rate variance. First determine the formula for the rate variance, then compute the rate variance for variable manufacturing overhead. Variable overhead x ( rate variance x (

Name: Direct materials (resin). . . . . . . . . . . . . . . . . . . . . . .
Uploaded: 2024-03-20T06:33:06.000Z
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Description: Direct materials (resin). . . . . . . . . . . . . . . . . . . . . . . . . .11 pounds per pot at a cost of $6.00 per poundDirect labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.0 hours at a cost of $20.00 per hourStandard variabl

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter24: Material And Labor Variances (primevar)

Section: Chapter Questions

Problem 4R: The worksheet you have developed will handle most simple variance analysis problems. Try the problem...

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Direct materials (resin). . . . . . . . . . . . . . . . . . . . . . . . . .	11 pounds per pot at a cost of $6.00 per pound
Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	2.0 hours at a cost of $20.00 per hour
Standard variable manufacturing overhead rate. . . . .	$5.00 per direct labor hour
Budgeted fixed manufacturing overhead. . . . . . . . .	$24,000
Standard fixed MOH rate. . . . . . . . . . . . . . . . . . . . . . . . .	$7.00 per direct labor hour (DLH)

Similar questions

The worksheet you have developed will handle most simple variance analysis problems. Try the problem below for Pscheidl, Inc.: Actual production for October was 11,500 units. Compute the direct materials and direct labor variances for Pscheidl, Inc. Be careful when entering your input because this problem presents the information in a different format from the McGrade Industries data. Save the file as PRIMEVAR4. Print the worksheet when done.
Samsung monitors its overhead. In an analysis of overhead cost variances, what is the controllable variance and what causes it?
Best, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) variable overhead, $3,800; actual fixed overhead, $3, 500; actual direct labor hours, 1,400. Read the requirements. Data table Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standardco \table [[,, Formula,Variance], [VOH cost variance, = , 1 = , ], [VOH efficiency variance, =,1 =, 0
Requirement 2. Compute the cost variance and the efficiency variance for direct materials and for direct labor. For manufacturing overhead, compute the variable overhead cost, variable overhead efficiency, fixed overhead cost, and fixed overhead volume variances. Round to the nearest dollar. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar. Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance Direct materials cost variance Direct labor cost variance Next compute the efficiency variances. Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole…
a. Analyze the factory overhead variance of Golden Manufacturers Inc., based on the given data.
A company applies overhead using machine hours. Additional information follows. Standard variable overhead rate Actual variable overhead rate Standard hours of machine use (for actual production) Actual hours of machine use AH = Actual Hours AVR = Actual Variable Rate SH = Standard Hours SVR = Standard Variable Rate Compute the variable overhead spending, efficiency variances and the total variable overhead variance. Identify each variance as favorable or unfavorable. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Actual Variable Overhead $4.40 per machine hour $ 4.60 per machine hour 5,400 hours 5,550 hours Flexible Budget Variable OH Standard Applied Variable OH
Tailored Clothing is a manufacturer of designer suits. The cost of each suit is the sum of three variable costs (direct material costs, direct manufacturing labor costs, and manufacturing overhead costs) and one fixed-cost category (manufacturing overhead costs). A (Click the icon to view additional information.) Read the requirements Requirement 1. Compute the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead. Begin by computing the following amounts for the variable manufacturing overhead. Actual Input Qty. - X More info Actual Costs Allocated Incurred Budgeted Rate Flexible Budget Overhead Variable manufacturing overhead cost is allocated to each suit on the basis of budgeted direct manufacturing labor-hours per suit. For June 2017, each suit is budgeted to take 3 labor-hours. Budgeted variable manufacturing overhead cost per labor-hour is $11. The budgeted number of suits to be manufactured in June 2017 is 1,020. - X…
Lynx Corp. manufactures windows and doors. Lynx has been using a standard cost system that bases cost and efficiency standards on Lynx’s historical long-run average performance. Suppose Lynx’s controller has engaged your team of management consultants to advise him or her whether Lynx should use some basis other than historical performance for setting standards. Requirements List the types of variances you recommend that Lynx compute (for example, direct materials cost variance for glass). For each variance, what specific standards would Lynx need to develop? In addition to cost standards, do you recommend that Lynx develop any nonfinancial standards? There are many approaches to setting standards other than simply using long-run average historical costs and quantities. a. List three alternative approaches that Lynx could use to set standards, and explain how Lynx could implement each alternative. b. Evaluate each alternative method of setting standards, including the pros and cons…
KINDLY ANSWER ALL 5 QUESTIONS In determining the standard factory overhead rate, which level of capacity is used? Select one: Maximum capacity Expected actual capacity Practical capacity Normal capacity One way of analyzing the fixed factory overhead variance is breaking it down into Select one: Efficiency and capacity variances Spending and volume variance Efficiency and volume variance Spending and budget variance Setting standards Select one: Should be done to make them as tight as possible Is largely a matter of calculating rates and quantities Has important behavioral implications Is done only for manufacturing activities A major drawback to setting standards based on historical results is that such standards Select one: Are usually not well received by workers Are harder to compute than are engineered standards Are usually too hard to meet because of inflation Can perpetuate inefficiencies Prior department costs when using process costing method are most similar to:…
Pickul Awning manufactures awnings and uses a standard cost system. The company allocates overhead based on the number of direct labor hours. The following are the company's cost and standards data: (Click the icon to view the standards.) Requirement 1. Calculate the standard cost of one awning. Standard cost Direct materials Direct labor Variable MOH Fixed MOH Total standard cost Standard cost per unit Requirement 2a. Calculate the direct material variances. (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dollar. Label the variance as fa First determine the formula for the price variance, then compute the price variance for direct materials. Determine the formula for the quantity variance, then compute the quantity variance for direct materials. = DM price variance ) = First determine the formula for the efficiency variance, then compute the efficiency variance for direct labor. x( x( x ( x( = DM quantity…
Lynx Corp. manufactures windows and doors. Lynx has been using a standard cost system that bases cost and efficiency standards on Lynx’s historical long-run average performance. Suppose Lynx’s controller has engaged your team of management consultants to advise him or her whether Lynx should use some basis other than historical performance for setting standards. Requirements List the types of variances you recommend that Lynx compute (for example, direct materials cost variance for glass). For each variance, what specific standards would Lynx need to develop? In addition to cost standards, do you recommend that Lynx develop any nonfinancial standards? There are many approaches to setting standards other than simply using long-run average historical costs and quantities. List three alternative approaches that Lynx could use to set standards, and explain how Lynx could implement each alternative. Evaluate each alternative method of setting standards, including the pros and cons of…
1: Calculate the fixed factory overhead volume variance and state why it is favorable or unfavorable. 2: Calculate the variable factory overhead controllable variance and state why it is favorable or unfavorable. 3: Calculate the total factory overhead variance.