1 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. The company budgeted $13,630 variable factory overhead cost, $89,300 for fixed factory overhead cost and 2,350 direct labor hours (its practical capacity) to manufacture 4,700 pairs of boots in March. The factory used 2,900 direct labor hours in March to manufacture 4,600 pairs of boots and spent $16,000 on variable overhead during the month. The actual fixed overhead cost incurred for the month was $91,500. Required: 1. Compute the fixed overhead budget (spending) variance and the fixed overhead volume variance for March and indicate whether each variance is favorable (F) or unfavorable (U). 2. Provide the appropriate journal entry to record the fixed overhead: (A) budget (spending) variance and (B) fixed overhead volume variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the fixed overhead spending (budget) variance and the fixed overhead volume variance for March and indicate whether each variance is favorable (F) or unfavorable (U). Fixed overhead spending (budget) variance Fixed overhead volume variance
1 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. The company budgeted $13,630 variable factory overhead cost, $89,300 for fixed factory overhead cost and 2,350 direct labor hours (its practical capacity) to manufacture 4,700 pairs of boots in March. The factory used 2,900 direct labor hours in March to manufacture 4,600 pairs of boots and spent $16,000 on variable overhead during the month. The actual fixed overhead cost incurred for the month was $91,500. Required: 1. Compute the fixed overhead budget (spending) variance and the fixed overhead volume variance for March and indicate whether each variance is favorable (F) or unfavorable (U). 2. Provide the appropriate journal entry to record the fixed overhead: (A) budget (spending) variance and (B) fixed overhead volume variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the fixed overhead spending (budget) variance and the fixed overhead volume variance for March and indicate whether each variance is favorable (F) or unfavorable (U). Fixed overhead spending (budget) variance Fixed overhead volume variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
The company budgeted $13,630 variable factory overhead cost, $89,300 for fixed factory overhead cost and 2,350
direct labor hours (its practical capacity) to manufacture 4,700 pairs of boots in March.
The factory used 2,900 direct labor hours in March to manufacture 4,600 pairs of boots and spent $16,000 on variable
overhead during the month. The actual fixed overhead cost incurred for the month was $91,500.
Required:
1. Compute the fixed overhead budget (spending) variance and the fixed overhead volume variance for March and indicate whether
each variance is favorable (F) or unfavorable (U).
2. Provide the appropriate journal entry to record the fixed overhead: (A) budget (spending) variance and (B) fixed overhead volume
variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute the fixed overhead spending (budget) variance and the fixed overhead volume variance for March and indicate
whether each variance is favorable (F) or unfavorable (U).
Fixed overhead spending
(budget) variance
Fixed overhead volume
variance
< Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F820caf8c-cb11-414d-a104-dce0d825596e%2F321a0a6f-b87f-4a12-8086-76458684105e%2Fredz5v_processed.png&w=3840&q=75)
Transcribed Image Text:!
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.
The company budgeted $13,630 variable factory overhead cost, $89,300 for fixed factory overhead cost and 2,350
direct labor hours (its practical capacity) to manufacture 4,700 pairs of boots in March.
The factory used 2,900 direct labor hours in March to manufacture 4,600 pairs of boots and spent $16,000 on variable
overhead during the month. The actual fixed overhead cost incurred for the month was $91,500.
Required:
1. Compute the fixed overhead budget (spending) variance and the fixed overhead volume variance for March and indicate whether
each variance is favorable (F) or unfavorable (U).
2. Provide the appropriate journal entry to record the fixed overhead: (A) budget (spending) variance and (B) fixed overhead volume
variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute the fixed overhead spending (budget) variance and the fixed overhead volume variance for March and indicate
whether each variance is favorable (F) or unfavorable (U).
Fixed overhead spending
(budget) variance
Fixed overhead volume
variance
< Required 1
Required 2 >
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