2. Calculate all the variable overhead variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" forunfavourable, and "None" for no effect (i.e., zero variance).)Variable overhead rate varianceVariable overhead efficiency varianceTotal variable overhead variance3. Calculate all the fixed overhead variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" forunfavourable, and "None" for no effect (i.e., zero variance).)Budget varianceVolume variance Consider a manufacturer that makes a certain product. Variable manufacturing overhead and fixed manufacturing overhead areallocated to each unit made based on budgeted direct labour-hours. The following are the production data. (There were no beginningor ending inventories.)Budgeted variable overhead rate per DLHBudgeted DLHS per unitData for May are as follows:Budgeted production volumeActual direct labour-hoursActual variable overhead costsActual production volumeBudgeted fixed overhead costs.Actual fixed overhead costs)Direct labour-hourshours1051,350 units9,600 DLHS$91,2001,800 unitsRequired:1-a. Calculate the direct labour-hours management will have expected to incur in light of the production volume achieved.$ 81,000$ 94,5001-b. Which amount is relevant for determining labour efficiency variance?Relevant for determining labour efficiency variance

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Description: 2. Calculate all the variable overhead variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" forunfavourable, and "None" for no effect (i.e., zero variance).)Variable overhead rate varianceVariable overhead efficiency

1. VOH Spending Variance: Variable Overhead Spending Variance is the difference between what the…

Business

Accounting

2. Calculate all the variable overhead variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" fo unfavourable, and "None" for no effect (i.e., zero variance).) Variable overhead rate variance Variable overhead efficiency variance Total variable overhead variance 3. Calculate all the fixed overhead variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Budget variance Volume variance

2. Calculate all the variable overhead variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" fo unfavourable, and "None" for no effect (i.e., zero variance).) Variable overhead rate variance Variable overhead efficiency variance Total variable overhead variance 3. Calculate all the fixed overhead variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Budget variance Volume variance

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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Wetherbee Tech Services (WTS) is a chain of computer maintenance technicians for households and small businesses. The following data are available for last year's services: • WTS recorded 120,900 tech calls last year. It had budgeted 126,800 calls, averaging 90 minutes each. • Standard variable labor and support costs per tech call were as follows: Direct IT specialist services: 90 minutes at $54 per hour Variable support staff, supplies, and overhead: 30 minutes at $24 per hour Fixed overhead costs: Annual budget $4,141,800 • Fixed overhead is applied at the rate of $36.00 per call. . Actual tech service call costs: Direct IT specialist services: 120,900 calls averaging 84 minutes at $56.00 per hour Variable support staff, supplies, and overhead: averaging 40 minutes per call at $22.50 per hour x 120,900 calls Fixed overhead Required: a. Prepare a cost variance analysis for each variable cost for last year. b. Prepare a fixed overhead cost variance analysis. Complete this question by…
1.What is the labor rate variance ( indicate the effect of each variance by selecting "f" for favorable, U for unfavorable, and None for no effect and round your final answer to the nearest whole number) 2. What is the variable overhead efficiency variance ? ( indicate the effect of each variance by selecting "f" for favorable, U for unfavorable, and None for no effect and round your final answer to the nearest whole number) 3. what is the variable overhead rate variance?
Compute for variable overhead efficiency variance.
B. Given the possible causes of the variances, identify the variance for each number and whether Favorable or Unfavorable. Form 2 columns to write your answers. State whether variance is Favorable or Unfavorable Causes Give the Material Variance Name substandard material, quantity 1. discount, negotiated better price, quantity discount, or price drop higher-quality material, price 2. 2. increase, and negotiated poorly Give the Material Variance Name higher-quality material, better- qualified employees, or a change in manufacturing 3. 3. process lower-quality material, less- qualified employees, or a change in manufacturing 4. process Give the Labor Variance Name less-qualified employees or a change in quality level of employees due to a change in 5. 5. process more-qualified employees, a change in contract with employees, or a change in manufacturing process that changes the level of employees needed 6. Give the Labor Variance Name better material, higher-quality employees, or a change…
A diagram showing interrelationships between two or more variables is called a __________. Multiple Choice histogram variance analysis pivottable graph
What types of variances are found on cost center reports? Explain what each variance is measuring and why this information is important.
1 S 3. Compute the variable manufacturing overhead spending and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Book Variable overhead sponding variance S Variable overhead efficiency variance 1 U 1 F Print 4. Compute the fixed overhead budget and volume variances. (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (I.e., zero variance).) Fixed overhead budget variance $ Fixed overhead volumne variance $ 1U 0 Nono
At the beginning of the year, you estimated the following - Production - 75,000 units Raw Material - 270,000 pounds at a cost of $1,026,000 Direct Labor - 187,500 hours at a cost of $4,125,000 Variable Overhead - 135,000 machine hours at a cost of $567,000 Fixed Overhead - $900,000 At the end of year, the actual results were as follows - Production - 73,000 units Raw Material - 265,720 pounds purchased and used at a cost of $1,036,308 Direct Labor - 179,580 hours at a cost of $3,968,718 Variable Overhead - 133,590 machine hours at a cost of $558,406.20 Fixed Overhead - $891,000
List the variable overhead variances, and briefly describe each.
At the beginning of the year, you estimated the following - Production - 75,000 units Raw Material - 270,000 pounds at a cost of $1,026,000 Direct Labor - 187,500 hours at a cost of $4,125,000 Variable Overhead - 135,000 machine hours at a cost of $567,000 Fixed Overhead - $900,000 At the end of year, the actual results were as follows - Production - 73,000 units Raw Material - 265,720 pounds purchased and used at a cost of $1,036,308 Direct Labor - 179,580 hours at a cost of $3,968,718 Variable Overhead - 133,590 machine hours at a cost of $558,406.20 Fixed Overhead - $891,000
Which of the following variances cannot occur together during the same accounting period? Select one: a. Favorable labor rate variance and unfavorable total labor variance. b. Unfavorable labor rate variance and favorable labor efficiency variance. c. Favorable labor efficiency variance and favorable material quantity variance. d. None of the other answers are correct, because all of these variance combinations are possible. e. Unfavorable labor efficiency variance and favorable material quantity
Comment on the statement “A favourable variance is always better than an adverse variance” by considering one behavioural issue involved.