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The following information relates to Brook, Inc.'s overhead costs for the month: (Click the icon to view the information.) Requirements 1. 2. Compute the overhead variances for the month variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance Explain why the variances are favorable or unfavorable Requirement 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Fount Begin by selecting the formulas needed to compute the variable overhead (VOH) and fixed overhead (FOH) variances, and then compute each variance = Calculator VOH cost variance VOH efficiency variance FOH cost variance =FOH volume variance Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units $ 8,000 $ 3,000 1,000 hours 5,000 units Brook allocates manufacturing overhead to production based on standard direct labor hours. Last month, Brook reported the following actual results: actual variable overhead, $10,700; actual fixed overhead, $2,840; actual production of 7,100 units at 0.30 direct labor hours per unit. The standard direct labor time is 0.2 direct labor hours per unit (1,000 static direct labor hours / 5,000 static units) Print Done - X Clea

The following information relates to Brook, Inc.'s overhead costs for the month: (Click the icon to view the information.) Requirements 1. 2. Compute the overhead variances for the month variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance Explain why the variances are favorable or unfavorable Requirement 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Fount Begin by selecting the formulas needed to compute the variable overhead (VOH) and fixed overhead (FOH) variances, and then compute each variance = Calculator VOH cost variance VOH efficiency variance FOH cost variance =FOH volume variance Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units $ 8,000 $ 3,000 1,000 hours 5,000 units Brook allocates manufacturing overhead to production based on standard direct labor hours. Last month, Brook reported the following actual results: actual variable overhead, $10,700; actual fixed overhead, $2,840; actual production of 7,100 units at 0.30 direct labor hours per unit. The standard direct labor time is 0.2 direct labor hours per unit (1,000 static direct labor hours / 5,000 static units) Print Done - X Clea

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 39BEB: Variable Overhead Spending and Efficiency Variances, Columnar and Formula Approaches Aretha Company...
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The following information relates to Brook, Inc.'s overhead costs for the month: (Click the icon to view the information.) Requirements 1. 2. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance Explain why the variances are favorable or unfavorable. Requirement 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Begin by selecting the formulas needed to compute the variable overhead (VOH) and fixed overhead (FOH) variances, and then compute each variance amount. VOH cost variance VOH efficiency variance = FOH cost variance FOH volume variance Data table - X Calculator Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units $ 8,000 $ 3,000 1,000 hours 5,000 units Brook allocates manufacturing overhead to production based on standard direct labor hours. Last month, Brook reported the following actual results: actual variable overhead, $10,700; actual fixed overhead, $2,840; actual production of 7,100 units at 0.30 direct labor hours per unit. The standard direct labor time is 0.2 direct labor hours per unit (1,000 static direct labor hours / 5,000 static units). Print Done Clea
Transcribed Image Text:The following information relates to Brook, Inc.'s overhead costs for the month: (Click the icon to view the information.) Requirements 1. 2. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance Explain why the variances are favorable or unfavorable. Requirement 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Begin by selecting the formulas needed to compute the variable overhead (VOH) and fixed overhead (FOH) variances, and then compute each variance amount. VOH cost variance VOH efficiency variance = FOH cost variance FOH volume variance Data table - X Calculator Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units $ 8,000 $ 3,000 1,000 hours 5,000 units Brook allocates manufacturing overhead to production based on standard direct labor hours. Last month, Brook reported the following actual results: actual variable overhead, $10,700; actual fixed overhead, $2,840; actual production of 7,100 units at 0.30 direct labor hours per unit. The standard direct labor time is 0.2 direct labor hours per unit (1,000 static direct labor hours / 5,000 static units). Print Done Clea
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