1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. 2. Explain why the variances are favorable or unfavorable.
1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. 2. Explain why the variances are favorable or unfavorable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please avoid solutions in image thank you
![ri
cy
Requirements
1. Compute the overhead variances for the year: variable overhead
cost variance, variable overhead efficiency variance, fixed overhead
cost variance, and fixed overhead volume variance.
2. Explain why the variances are favorable or unfavorable.
Print
Done
I](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96f1460f-c30c-40f6-b439-129c05adb630%2F2ded341b-3b31-4c53-8d11-13c50689b75c%2Fcjqwnqo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ri
cy
Requirements
1. Compute the overhead variances for the year: variable overhead
cost variance, variable overhead efficiency variance, fixed overhead
cost variance, and fixed overhead volume variance.
2. Explain why the variances are favorable or unfavorable.
Print
Done
I
![Mason Fender uses a standard cost system and provide the following information:
(Click the icon to view the information.)
Mason Fender allocates manufacturing overhead to production based on standard direct labor hours. Mason Fender reported the following actual results for 2024 actual number of
fenders produced, 20,000, actual variable overhead, $5,350; actual fixed overhead, $26,000, actual direct labor hours, 460
Read the requirements
Requirement 1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance and fixed
overhead volume variance.
Begin with the variable overhead cost and efficiency variances. Select the required formulas compute the variable overhead cost and efficiency variances and identify whether each
variance is favorable (F) or unfavorable (U) (You may need to simply the formula based on the data provided. Abbreviations used AC actual cost AQ-actual quantity, FOH =
Exed overhead, SC standard cost SQ standard quantity: VOH-variable overhead)
Formula
VOH cost variance
VOH efficiency variance
Variance
Static budget variable overhead
Static budget fixed overhead
Static budget direct labor hours
Static budget number of units
Standard direct labor hours
Print
$2,300
$23,000
575 hours
23,000 units
0.025 hours per fender
Done
my](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96f1460f-c30c-40f6-b439-129c05adb630%2F2ded341b-3b31-4c53-8d11-13c50689b75c%2F21stpgj_processed.png&w=3840&q=75)
Transcribed Image Text:Mason Fender uses a standard cost system and provide the following information:
(Click the icon to view the information.)
Mason Fender allocates manufacturing overhead to production based on standard direct labor hours. Mason Fender reported the following actual results for 2024 actual number of
fenders produced, 20,000, actual variable overhead, $5,350; actual fixed overhead, $26,000, actual direct labor hours, 460
Read the requirements
Requirement 1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance and fixed
overhead volume variance.
Begin with the variable overhead cost and efficiency variances. Select the required formulas compute the variable overhead cost and efficiency variances and identify whether each
variance is favorable (F) or unfavorable (U) (You may need to simply the formula based on the data provided. Abbreviations used AC actual cost AQ-actual quantity, FOH =
Exed overhead, SC standard cost SQ standard quantity: VOH-variable overhead)
Formula
VOH cost variance
VOH efficiency variance
Variance
Static budget variable overhead
Static budget fixed overhead
Static budget direct labor hours
Static budget number of units
Standard direct labor hours
Print
$2,300
$23,000
575 hours
23,000 units
0.025 hours per fender
Done
my
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education