1 Book [The following information applies to the questions displayed below.] The following data are the actual results for Marvelous Marshmallow Company for October. Actual output Actual variable overhead Actual fixed overhead Actual machine time. 9,000 cases $ 408,000 $ 123,000 a. Variable-overhead spending variance b. Variable-overhead efficiency variance c. Fixed-overhead budget variance d. Fixed-overhead volume variance P 44,100 machine hours Standard cost and budget information for Marvelous Marshmallow Company follows: Standard variable-overhead rate $ 8.00 per machine hour Standard quantity of machine hours Budgeted fixed overhead Budgeted output 4 hours per case of marshmallows $ 120,000 ped month 10,000 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" effect (i.e., zero variance). Select "Positive" or "Negative" for the Fixed-overhead Volume variance.
1 Book [The following information applies to the questions displayed below.] The following data are the actual results for Marvelous Marshmallow Company for October. Actual output Actual variable overhead Actual fixed overhead Actual machine time. 9,000 cases $ 408,000 $ 123,000 a. Variable-overhead spending variance b. Variable-overhead efficiency variance c. Fixed-overhead budget variance d. Fixed-overhead volume variance P 44,100 machine hours Standard cost and budget information for Marvelous Marshmallow Company follows: Standard variable-overhead rate $ 8.00 per machine hour Standard quantity of machine hours Budgeted fixed overhead Budgeted output 4 hours per case of marshmallows $ 120,000 ped month 10,000 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" effect (i.e., zero variance). Select "Positive" or "Negative" for the Fixed-overhead Volume variance.
Chapter1: Financial Statements And Business Decisions
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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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eBook
[The following information applies to the questions displayed below.]
The following data are the actual results for Marvelous Marshmallow Company for October.
Actual output
Actual variable overhead
Actual fixed overhead
Actual machine time
9,000 cases
$ 408,000
$ 123,000.
a. Variable-overhead spending variance
b. Variable-overhead efficiency variance
c. Fixed-overhead budget variance
d. Fixed-overhead volume variance
lommor
44,100 machine hours.
Standard cost and budget information for Marvelous Marshmallow Company follows:
Standard variable-overhead rate
8.00 per machine hour
4 hours per case of marshmallows
Standard quantity of machine hours
udgeted fixed overhead
Budgeted output
$ 120,000 ped month
10,000 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
effect (i.e., zero variance). Select "Positive" or "Negative" for the Fixed-overhead Volume variance.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe942c417-f34f-4ca6-a16c-a6a6aaed6a41%2Ff1cb0b01-6872-41bf-80f4-a14184e97a71%2Fb8ub62n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1
eBook
[The following information applies to the questions displayed below.]
The following data are the actual results for Marvelous Marshmallow Company for October.
Actual output
Actual variable overhead
Actual fixed overhead
Actual machine time
9,000 cases
$ 408,000
$ 123,000.
a. Variable-overhead spending variance
b. Variable-overhead efficiency variance
c. Fixed-overhead budget variance
d. Fixed-overhead volume variance
lommor
44,100 machine hours.
Standard cost and budget information for Marvelous Marshmallow Company follows:
Standard variable-overhead rate
8.00 per machine hour
4 hours per case of marshmallows
Standard quantity of machine hours
udgeted fixed overhead
Budgeted output
$ 120,000 ped month
10,000 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
effect (i.e., zero variance). Select "Positive" or "Negative" for the Fixed-overhead Volume variance.
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