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(a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,725. If variance is zero, select "Not Applicable" and enter O for the amounts.) Variable overhead spending variance Variable overhead efficiency variance $ $ (b) Calculate the fixed overhead spending variance for May. (If variance is zero, select "Not Applicable" and enter O for the amounts.)

(a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,725. If variance is zero, select "Not Applicable" and enter O for the amounts.) Variable overhead spending variance Variable overhead efficiency variance $ $ (b) Calculate the fixed overhead spending variance for May. (If variance is zero, select "Not Applicable" and enter O for the amounts.)

FINANCIAL ACCOUNTING
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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Current Attempt in Progress Waterway Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The following data are taken from the budget prepared at the beginning of the year by Waterway's controller. The company applies overhead on the basis of machine hours. Variable manufacturing overhead Fixed manufacturing overhead Direct labor hours Machine hours Annual Budget $2,637,800 $1,203,960 Variable overhead spending variance 239,800 Variable overhead efficiency variance May Budget $235.400 $100,330 4.460 During the month of May, Waterway used 4,200 direct labor hours and 21,630 machine hours. The flexible budget for the month allowed 4,360 direct labor hours and 21,150 machine hours. Actual fixed manufacturing overhead incurred was $104,100; variable manufacturing overhead incurred was $235,230. 21,400 (a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,725. If variance is zero, select "Not Applicable" and enter O for the amounts.)
Transcribed Image Text:Current Attempt in Progress Waterway Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The following data are taken from the budget prepared at the beginning of the year by Waterway's controller. The company applies overhead on the basis of machine hours. Variable manufacturing overhead Fixed manufacturing overhead Direct labor hours Machine hours Annual Budget $2,637,800 $1,203,960 Variable overhead spending variance 239,800 Variable overhead efficiency variance May Budget $235.400 $100,330 4.460 During the month of May, Waterway used 4,200 direct labor hours and 21,630 machine hours. The flexible budget for the month allowed 4,360 direct labor hours and 21,150 machine hours. Actual fixed manufacturing overhead incurred was $104,100; variable manufacturing overhead incurred was $235,230. 21,400 (a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,725. If variance is zero, select "Not Applicable" and enter O for the amounts.)
During the month of May, Waterway used 4,200 direct labor hours and 21,630 machine hours. The flexible budget for the month allowed 4,360 direct labor hours and 21,150 machine hours. Actual fixed manufacturing overhead incurred was $104,100; variable manufacturing overhead incurred was $235,230. (a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,725. If variance is zero, select "Not Applicable and enter O for the amounts.) Variable overhead spending variance Variable overhead efficiency variance (b) Calculate the fixed overhead spending variance for May. (If variance is zero, select "Not Applicable" and enter O for the amounts.) Fixed overhead spending variance eTextbook and Media Save for Later $ $ Attempts: 0 of 3 used Submit Answer
Transcribed Image Text:During the month of May, Waterway used 4,200 direct labor hours and 21,630 machine hours. The flexible budget for the month allowed 4,360 direct labor hours and 21,150 machine hours. Actual fixed manufacturing overhead incurred was $104,100; variable manufacturing overhead incurred was $235,230. (a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,725. If variance is zero, select "Not Applicable and enter O for the amounts.) Variable overhead spending variance Variable overhead efficiency variance (b) Calculate the fixed overhead spending variance for May. (If variance is zero, select "Not Applicable" and enter O for the amounts.) Fixed overhead spending variance eTextbook and Media Save for Later $ $ Attempts: 0 of 3 used Submit Answer
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