Variable Overhead variances: Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred. To calculate: Variable Overhead rate, efficiency, and spending variances.

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Chapter 9, Problem 5.3GAP

To determine

Concept introduction:

Variable Overhead variances:

Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred.

To calculate:

Variable Overhead rate, efficiency, and spending variances.

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Pickul Awning manufactures awnings and uses a standard cost system. The company allocates overhead based on the number of direct labor hours. The following are the company's cost and standards data: (Click the icon to view the standards.) Requirement 1. Calculate the standard cost of one awning. Standard cost Direct materials Direct labor Variable MOH Fixed MOH Total standard cost Standard cost per unit Requirement 2a. Calculate the direct material variances. (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dollar. Label the variance as fa First determine the formula for the price variance, then compute the price variance for direct materials. Determine the formula for the quantity variance, then compute the quantity variance for direct materials. = DM price variance ) = First determine the formula for the efficiency variance, then compute the efficiency variance for direct labor. x( x( x ( x( = DM quantity…

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 varlance, the factory overhead spending varlance, 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. No The company budgeted $11,925 variable factory overhead cost, $96,750 for fixed factory overhead cost and…

● 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…

Answer 2

Question

Chapter 9, Problem 5.3GAP

To determine

Concept introduction:

Variable Overhead variances:

Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred.

To calculate:

Variable Overhead rate, efficiency, and spending variances.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 9, Problem 5.3GAP

To determine

Concept introduction:

Variable Overhead variances:

Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred.

To calculate:

Variable Overhead rate, efficiency, and spending variances.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 9, Problem 5.3GAP

To determine

Concept introduction:

Variable Overhead variances:

Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred.

To calculate:

Variable Overhead rate, efficiency, and spending variances.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 9, Problem 5.3GAP

To determine

Concept introduction:

Variable Overhead variances:

Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred.

To calculate:

Variable Overhead rate, efficiency, and spending variances.

Answer 6

Chapter 9, Problem 5.3GAP

To determine

Concept introduction:

Variable Overhead variances:

Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred.

To calculate:

Variable Overhead rate, efficiency, and spending variances.

Answer 7

Chapter 9, Problem 5.3GAP

To determine

Concept introduction:

Variable Overhead variances:

Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred.

To calculate:

Variable Overhead rate, efficiency, and spending variances.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

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Answer 11

Ch. 9 - Briefly describe the difference between budgetary...Ch. 9 - What are standard costs? When are they set?Ch. 9 - Prob. 3Q Ch. 9 - Prob. 4Q Ch. 9 - Prob. 5Q Ch. 9 - Prob. 6Q Ch. 9 - Prob. 7Q Ch. 9 - Prob. 8Q Ch. 9 - Prob. 9Q Ch. 9 - How do the master budget, flexible budget, and...

Variable Overhead variances: Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred. To calculate: Variable Overhead rate, efficiency, and spending variances.

Solution Summary: The author explains that Variable Overhead variances refer to the difference between the standard direct labor cost and actual direct labour cost incurred.

Concept explainers

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Concept introduction:

Variable Overhead variances:

Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred.

To calculate:

Variable Overhead rate, efficiency, and spending variances.

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Chapter 9 Solutions

Variable Overhead variances: Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred. To calculate: Variable Overhead rate, efficiency, and spending variances.

Solution Summary: The author explains that Variable Overhead variances refer to the difference between the standard direct labor cost and actual direct labour cost incurred.

Concept explainers

Videos

Concept introduction: Variable Overhead variances: Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred. To calculate: Variable Overhead rate, efficiency, and spending variances.

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Chapter 9 Solutions

Concept introduction:

Variable Overhead variances:

Direct labor variances refer to the difference between the standard direct labor cost and actual direct labor cost incurred.

To calculate:

Variable Overhead rate, efficiency, and spending variances.