Eagle's Nest Corporation has the following costs data on July 20xx:Fagle's Nest Corporation has the following costs data on July 20xxi Standard overhead ratesFixed overhead rateP 6.00Variable overhead rate4.00P10.00Totalii. Actual overhead costsFixedP2,500,000.001.600,000.00P4,100,000.00VariableTotaliii. Standard hours390,000 hoursiv. Actual hours380,000 hoursv. Normal capacity135,000 unitsor(135,000 units x 3 hours)405,000 hoursRequired: Analyze the manufacturing overhead variances using the:1. 2-way analysis2. 3-way analysis3. 4-way analysis4. 5-way analysis

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Business

Accounting

1. 2-way analysis 2. 3-way analysis 3. 4-way analysis

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Eagle's Nest Corporation has the following costs data on July 20xx:
Fagle's Nest Corporation has the following costs data on July 20xx
i Standard overhead rates
Fixed overhead rate
P 6.00
Variable overhead rate
4.00
P10.00
Total
ii. Actual overhead costs
Fixed
P2,500,000.00
1.600,000.00
P4,100,000.00
Variable
Total
iii. Standard hours
390,000 hours
iv. Actual hours
380,000 hours
v. Normal capacity
135,000 units
or
(135,000 units x 3 hours)
405,000 hours
Required: Analyze the manufacturing overhead variances using the:
1. 2-way analysis
2. 3-way analysis
3. 4-way analysis
4. 5-way analysis

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