Introduction To Managerial Accounting
8th Edition
ISBN: 9781259917066
Author: BREWER, Peter C., Garrison, Ray H., Noreen, Eric W.
Publisher: Mcgraw-hill Education,
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Chapter 9.A, Problem 7E
Relations Among Fixed
Selected information relating to Yost Companys operations for the most recent year is given below: 
Required:
1. What were the standard machine-hours allowed for the actual number of units produced?
2. What was the total budgeted fixed overhead cost for the period?
3. What vas the fixed portion of the predetennined overhead rate?
4. What was the fixed overhead volume variance?
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Relations Among Fixed Overhead Variances
Selected information relating to Yost Company’s operations for the most recent year is given below:
The company applies overhead cost to products on the basis of standard machine-hours.
Required:
1. What were the standard machine-hours allowed for the actual number of units produced?
2. What was the total budgeted fixed overhead cost for the period?
3. What was the fixed portion of the predetermined overhead rate.
4. What was the fixed overhead volume variance?
For the month of April, compute the variances, indicating whether it is favorable (F) or unfavorable (U):
Q. Variable manufacturing overhead spending variance ?
Fixed Overhead Variances
Selected operating information on three different companies for a recent year is given below:
Required:
For each company, state whether the company would have a favorable or unfavorable volume variance and why.
Chapter 9 Solutions
Introduction To Managerial Accounting
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- Mulliner Company showed the following information for the year: Required: 1. Calculate the standard direct labor hours for actual production. 2. Calculate the applied variable overhead. 3. Calculate the total variable overhead variance.arrow_forwardRath Company showed the following information for the year: Required: 1. Calculate the standard direct labor hours for actual production. 2. Calculate the applied variable overhead. 3. Calculate the total variable overhead variance.arrow_forwardIncome statement indicating standard cost variances The following data were taken from the records of Griggs Company for December: Prepare an income statement for presentation to management.arrow_forward
- Reddy Corporation has collected the following data for the month or June: What is the variable overhead efficiency variance?arrow_forwardWhich of the following is true concerning labor variances that are not material in amount? a. They are closed to Cost of Goods Sold. b. They are prorated among Work in Process, Finished Goods, and Cost of Goods Sold. c. They are prorated among Materials, Work in Process, Finished Goods, and Cost of Goods Sold. d. They are reported as part of Overall Variance on the balance sheet at the end of the year.arrow_forwardRibcos labor cost information for making its only product for March is as follows: A. What is the direct labor rate variance? B. What is the direct labor time variance? C. What is the total direct labor variance?arrow_forward
- Kamen Manufacturing Co. estimates the following labor and overhead costs for the period: Required: Use the four-variance method for overhead analysis. Calculate the variances for direct labor and overhead. Prove that the overhead variances equal over- or underapplied factory overhead for the period.arrow_forward(Appendix 10A) Which of the following is true concerning labor variances that are not material in amount? a. They are closed to Cost of Goods Sold. b. They are prorated among Work in Process, Finished Goods, and Cost of Goods Sold. c. They are prorated among Materials, Work in Process, Finished Goods, and Cost of Goods Sold. d. They are reported on the balance sheet at the end of the year. e. All of these.arrow_forwardFixed Overhead Variances Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Required: 1. Compute the fixed portion of the predetermined overhead rate for the year. 2. Compute the fixed overhead budget variance and volume variance.arrow_forward
- For the month of April, compute the variances, indicating whether it is favorable (F) or unfavorable (U): Q. Direct manufacturing labor efficiency variance ?arrow_forwardPrimara Corporation has a standard costing system in which it applies overhead to products on the basis of the standard direct labour- hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted standard direct labour-hours (denominator level of activity) Actual direct labour-hours Standard direct labour-hours allowed for the actual output $ 500,000 $ 508,000 50,000 54,000 52,000 Required: 1. Compute the fixed portion of the predetermined overhead rate for the year. Predetermined overhead rate per DLHarrow_forwardFor the month of April, compute the variances, indicating whether it is favorable (F) or unfavorable (U) Q.Variable manufacturing overhead efficiency variancearrow_forward
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What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY