Static-Budget Amounts Actual Results Pairs of shoes shipped 225,000 180,000 Average number of pairs of shoes per crate Packing hours per crate Variable direct cost per hour Fixed overhead cost 15 10 0.9 hours 1.1 hour $18 $16 $54,000 $56,500 1. What is the static budget number of crates for 2017? 2. What is the flexible budget number of crates for 2017? 3. What is the actual number of crates shipped in 2017? 4. Assuming fixed overhead is allocated using crate-packing hours, what is the predetermined fixed over- head allocation rate? Required 5. For variable direct batch-level costs, compute the price and efficiency variances. 6. For fixed overhead costs, compute the spending and the production-volume variances.

Dazzle Party is a small business that produces decorative balloons for events. Dazzle Party uses normal costing and assigns manufacturing overhead (MOH) costs using labour hours as the allocation base. Budgeted and actual production data for the year 2023 is provided below. Budget $60,000 120,000 Actual $52,000 MOH costs Labour-hours 110,000 Required: Calculate the difference between the allocated MOH cost and the actual MOH cost incurred in 2023. Clearly state whether this difference represents a case of under-allocation or over-allocation of MOH.

Hardev

● W S Required Information [The following information applies to the questions displayed below.] The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials, direct labor, and manufacturing (factory) overhead. The firm traces all direct costs to products, and it assigns overhead cost to products based on direct labor hours. Required: 1. Compute the factory overhead flexible-budget variance, the factory overhead spending variance, and the efficiency variance for variable factory overhead for March and state whether each variance is favorable (F) or unfavorable (U). 2. Provide the appropriate journal entry to record the variable overhead spending variance and a second entry to record the variable overhead efficiency variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs. The company budgeted $11,925 variable factory overhead cost, $96,750 for fixed factory overhead cost and…