The following data are the actual results for Marvelous Marshmallow Company for October. Actual output Actual variable overhead Actual fixed overhead Actual machine time Standard variable-overhead rate Standard quantity of machine hours Budgeted fixed overhead Budgeted output 11,000 cases $ 400,000 $ 132,000 Standard cost and budget information for Marvelous Marshmallow Company follows: a. Variable-overhead spending variance b. Variable-overhead efficiency variance c Fixed-overhead budget variance d. Fixed-overhead volume variance 46,800 machine hours $8.00 per machine hour 4 hours per case of marshmallows $ 128,000 per month 16,000 cases per month Required: Use any of the methods explained in the chapter to compute the following variances. Note: Indicate the effect of the first three variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Select "Positive" or "Negative" for the Fixed-overhead Volume variance. bok H Fint rences ABERLEON The following data are the actual results for Marvelous Marshmallow Company for October. Actual output Actual variable overhead 11.000 cases 3 $,400,000 $ 132,000 a. Variable-overhead spending variance b. Variable-overhead efficiency variance c Fixed-overhead budget variance d Fixed-overhead volume variance Actual fixed overhead Actual machine time Standard cost and budget information for Marvelous Marshmallow Company follows: Standard variable-overhead rate. Standard quantity of machine hours. Budgeted fixed overhead Budgeted output 46,800 machine hours $ 8.00 per machine hour 4 hours per case of marshmallows $ 128,000 per month 16,000 cases per month Required: Use any of the methods explained in the chapter to compute the following variances. Note: Indicate the effect of the first three variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Select "Positive" or "Negative" for the Fixed-overhead Volume variance. Activate Windows
The following data are the actual results for Marvelous Marshmallow Company for October. Actual output Actual variable overhead Actual fixed overhead Actual machine time Standard variable-overhead rate Standard quantity of machine hours Budgeted fixed overhead Budgeted output 11,000 cases $ 400,000 $ 132,000 Standard cost and budget information for Marvelous Marshmallow Company follows: a. Variable-overhead spending variance b. Variable-overhead efficiency variance c Fixed-overhead budget variance d. Fixed-overhead volume variance 46,800 machine hours $8.00 per machine hour 4 hours per case of marshmallows $ 128,000 per month 16,000 cases per month Required: Use any of the methods explained in the chapter to compute the following variances. Note: Indicate the effect of the first three variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Select "Positive" or "Negative" for the Fixed-overhead Volume variance. bok H Fint rences ABERLEON The following data are the actual results for Marvelous Marshmallow Company for October. Actual output Actual variable overhead 11.000 cases 3 $,400,000 $ 132,000 a. Variable-overhead spending variance b. Variable-overhead efficiency variance c Fixed-overhead budget variance d Fixed-overhead volume variance Actual fixed overhead Actual machine time Standard cost and budget information for Marvelous Marshmallow Company follows: Standard variable-overhead rate. Standard quantity of machine hours. Budgeted fixed overhead Budgeted output 46,800 machine hours $ 8.00 per machine hour 4 hours per case of marshmallows $ 128,000 per month 16,000 cases per month Required: Use any of the methods explained in the chapter to compute the following variances. Note: Indicate the effect of the first three variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Select "Positive" or "Negative" for the Fixed-overhead Volume variance. Activate Windows
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 15E: Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing...
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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.
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