![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
![The Big Company's expected production
volume was 36,000 units at 9,000 hours of
labor. The fixed overhead rate is KD 3 per
hour at 36,000 units. Actual fixed overhead
was KD 26,000 for 32,000 units of production.
Which of the following is correct?
Select one:
a. Cost variance, KD 1,000 U; volume variance,
KD 3,000 U.
b. Cost variance, KD 1,000 U; volume
variance, KD 3,000 F.
c. Cost variance, KD 3,000 F; volume variance,
KD 2,000 U.
d. Cost variance, KD 1,000 F; volume variance,
KD 3,000 U.](https://content.bartleby.com/qna-images/question/01f19b15-9ebf-4d4d-926c-3dbc9d95c9c0/6629fe22-0c50-44a8-824e-f302bd4ac2df/t36lj82_thumbnail.jpeg)
Transcribed Image Text:The Big Company's expected production
volume was 36,000 units at 9,000 hours of
labor. The fixed overhead rate is KD 3 per
hour at 36,000 units. Actual fixed overhead
was KD 26,000 for 32,000 units of production.
Which of the following is correct?
Select one:
a. Cost variance, KD 1,000 U; volume variance,
KD 3,000 U.
b. Cost variance, KD 1,000 U; volume
variance, KD 3,000 F.
c. Cost variance, KD 3,000 F; volume variance,
KD 2,000 U.
d. Cost variance, KD 1,000 F; volume variance,
KD 3,000 U.
Expert Solution
![Check Mark](/static/check-mark.png)
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 nowThis is a popular solution!
Step by stepSolved in 3 steps
![Blurred answer](/static/blurred-answer.jpg)
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.Similar questions
- The following data relate to the direct materials cost for the production of 1,800 automobile tires: Actual: 60,900 lb. at $1.70 Standard: 59,100 lb. at $1.75 a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Price variance $fill in the blank 1 Quantity variance $fill in the blank 3 Total direct materials cost variance $fill in the blank 5arrow_forwardPerez Company established a predetermined fixed overhead cost rate of $37 per unit of product. The company planned to make 6,100 units of product but actually produced only 5,300 units. Actual fixed overhead costs were $233,200. Required a. Determine the fixed cost spending variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the fixed cost volume variance and indicate whether it is favorable (F) or unfavorable (U). Note: For all requirements, Select "None" if there is no effect (i.e., zero variance). a. Total spending variance b. Total volume variancearrow_forward23. Consider the following information: Actual direct labor hours Standard direct labor hours Total actual direct labor cost Direct-labor efficiency variance The direct-labor rate variance is: 34,000 34,600 $159,800 $2,460Farrow_forward
- Please fill in these chartsarrow_forward5) The following data relate to product no. 89 of Mansion Corporation. Direct material standard: 3 square feet at $2.50 per square foot Direct material purchased 30,000 square feet at $2.60 per square foot Direct material consumed: 29,200 square feet Manufacturing activity: 9,600 units completed Assume that the company computes variances at the earliest point in time. The direct-material quantity variance is: A) S1,040F B) S1,000U. C) S2,000F D) $1,000F. E) S1,040U.arrow_forwardNeed help with the following question,arrow_forward
- You Did It! (YDI) has the following standards for direct labor: o Estimated quantity 8,900 direct labor hours o Estimated unit variable $48 per hour o Estimated fixed costs $18,000 YDI actually used 8,300 direct labor hours during production at an average hourly wage rate of $49.20, and actually incurred total fixed costs of $17,600. Using this information, answer the following questions. Please circle to identify the variance as favorable or unfavorable. What is the direct labor volume variance? Favorable or unfavorable?arrow_forwardA manager prepared the following table by which to analyze labor costs for the month: Actual hours at Actual rate is P10,000; Actual hours at Standard rate is P9,800 and Standard hours at Standard rate, P 8,820. What variance is P1,180? * idle labor variance labor efficiency variance labor spending variance total labor variancearrow_forward2. Acme Inc. has the following information available: Actual price paid for material Standard price for material Actual quantity purchased and used in production Standard quantity for units produced Actual labor rate per hour Standard labor rate per hour Actual hours Standard hours for units produced A. Compute the material price and quantity, and the labor rate and B. C. D. E. unfavorable variances. $1.00 $0.90 100 90 15 $ $ 16 200 220 efficiency variances. Describe the possible causes for this combination of favorable andarrow_forward
- Starts Inc. produces a product that require 3.50 standard hours per unit at a standard hourly rate of $17.00 per hour. Production of 7,500 units required 27,550 hours at an hourly rate of $16.00 per hour. What is the direct labor (a) rate variance, (b) time variance, and (c) total cost variance? (d) Perform the journal entries related to the variances.arrow_forwardUse the following information of Alfred Industries. Standard manufacturing overhead based on normal monthly volume: Fixed ($304,800 20,000 units) Variable ($100,000 20,000 units) Units actually produced in current month Actual overhead costs incurred (including $300,000 fixed) $ 15.24 Overhead spending variance Overhead volume variance 5.00 $ 20.24 18,000 units $ 383,800 Compute the overhead spending variance and the volume variance. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)arrow_forward52) Standard and actual costs for direct labor for the manufacture of 1,000 units of product were as follows: Actual costs 960 hours @ $36.00 Standard costs 970 hours @ $35.50 Determine the (a) time variance, (b) rate variance, and (c) total direct labor cost variance. For each variance, indicate if the variance is favorable or unfavorable. (a) (b) (c)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
![Text book image](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
![Text book image](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education