FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The following partial information is contained in the variance analysis received from the Western Plant of Eastlawn Company. All plants at Eastlawn apply overhead on the basis of direct labor-hours
Flexible budget for variable overhead based on 3,640 direct labor-hours
Actual total overhead incurred
Actual direct labor-hours worked
Direct labor-hours used to determined the fixed overhead application rate
Price variance for variable overhead Price variance for fixed overhead
Required:
a. Prepare a variable overhead analysis.
b. Prepare a fixed overhead analysis.
$ 101,920
510,300
3,772
3,390
$ 7,150 F
$ 11,814 U
Complete this question by entering your answers in the tabs below.
Required A
Required B
Prepare a fixed overhead analysis.
Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.
Price variance
11,814 บี
Production volume variance
F
Fixed overhead total variance
F
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Step 1: Defining Variable overhead Variance
VIEW Step 2: Solution to Requirement a:
VIEW Step 3: Continuation to requirement a :
VIEW Step 4: Solution to requirement b:
VIEW Step 5: Calculating Budgeted Fixed overhead and Fixed overhead application rate :
VIEW Step 6: Calculating Fixed overhead production volume variance and Fixed overhead total variance
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- I. Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The company's cost accountant has gathered the following information needed to perform a variance analysis at the end of the month: Standard Cost Information Direct materials.... Quantity allowed per unit . Direct labor rate..... Hours allowed per unit .. Fixed overhead budgeted . Normal level of production .. Variable overhead application rate . Fixed overhead application rate ($12,000 _ 1,200 units)... 10.00 per unit Total overhead application rate.. $5 per pound .100 pounds per unit $20.00 per hour 2 hours per unit $12,000 per month . 1,200 units $ 2.00 per unit $12.00 per unit Actual Cost Information Cost of materials purchased and used ... Pounds of materials purchased and used . Cost of direct labor .... $468,000 .104,000 pounds $46,480 2,240 hours Hours of direct labor.. arre$2,352 .$12,850 Cost of variable overhead . Cost of fixed overhead . Volume of production ..1,000 units…arrow_forwardDo not give image formatarrow_forwardInformation on Grixdale Partner's fixed overhead costs follows: Overhead applied Actual overhead Budgeted overhead $ 1,228,400 1,154,100 1,208,500 Required: What are the fixed overhead price and production volume variances? Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Fixed overhead price variance Fixed overhead production volume variancearrow_forward
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