Homework Help is Here – Start Your Trial Now!
Business
Accounting
actory Overnead variance Corrections he data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 40,000 units of product are as follows: Actual: Variable factory overhead $138,900 Fixed factory overhead 101,000 standard: 61,000 hrs. at $4.00 ($2.30 for variable factory overhead) 244,000 roductive capacity at 100% of normal was 59,900 hours, and the factory overhead cost budgeted at the level of 61,000 standard hours was $242,500. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred $138,900 Budgeted variable factory overhead for 61,000 hours 140,300 Variance-favorable $(1,400) ixed factory overhead volume variance: Normal productive capacity at 100% 59,900 hrs. Standard for amount produced 61,000 Productive capacity not used 1,100 hrs. Standard variable factory overhead rate x $4.00 Variance-unfavorable 4,400 Total factory overhead cost variance-unfavorable $3,000 ompute the following to assist you in identifying the errors in the factory overhead cost variance analysis. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interi omputations to the nearest cent, if required. Variance Amount Favorable/Unfavorable Variable Factory Overhead Controllable Variance -1,400 Favorable ixed Factory Overhead Volume Variance Favorable otal Factory Overhead Cost Variance 3,000 Favorable

actory Overnead variance Corrections he data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 40,000 units of product are as follows: Actual: Variable factory overhead $138,900 Fixed factory overhead 101,000 standard: 61,000 hrs. at $4.00 ($2.30 for variable factory overhead) 244,000 roductive capacity at 100% of normal was 59,900 hours, and the factory overhead cost budgeted at the level of 61,000 standard hours was $242,500. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred $138,900 Budgeted variable factory overhead for 61,000 hours 140,300 Variance-favorable $(1,400) ixed factory overhead volume variance: Normal productive capacity at 100% 59,900 hrs. Standard for amount produced 61,000 Productive capacity not used 1,100 hrs. Standard variable factory overhead rate x $4.00 Variance-unfavorable 4,400 Total factory overhead cost variance-unfavorable $3,000 ompute the following to assist you in identifying the errors in the factory overhead cost variance analysis. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interi omputations to the nearest cent, if required. Variance Amount Favorable/Unfavorable Variable Factory Overhead Controllable Variance -1,400 Favorable ixed Factory Overhead Volume Variance Favorable otal Factory Overhead Cost Variance 3,000 Favorable

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

.

Factory Overhead Variance Corrections The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 40,000 units of product are as follows: Actual: Variable factory overhead $138,900 Fixed factory overhead 101,000 Standard: 61,000 hrs. at $4.00 ($2.30 for variable factory overhead) 244,000 Productive capacity at 100% of normal was 59,900 hours, and the factory overhead cost budgeted at the level of 61,000 standard hours was $242,500. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred $138,900 Budgeted variable factory overhead for 61,000 hours 140,300 Variance-favorable $(1,400) Fixed factory overhead volume variance: Normal productive capacity at 100% 59,900 hrs. Standard for amount produced 61,000 Productive capacity not used 1,100 hrs. Standard variable factory overhead rate x $4.00 Variance-unfavorable 4,400 Total factory overhead cost variance-unfavorable $3,000 Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. Variance Amount Favorable/Unfavorable Variable Factory Overhead Controllable Variance -1,400 Favorable Fixed Factory Overhead Volume Variance Favorable Total Factory Overhead Cost Variance 3,000 Favorable
Transcribed Image Text:Factory Overhead Variance Corrections The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 40,000 units of product are as follows: Actual: Variable factory overhead $138,900 Fixed factory overhead 101,000 Standard: 61,000 hrs. at $4.00 ($2.30 for variable factory overhead) 244,000 Productive capacity at 100% of normal was 59,900 hours, and the factory overhead cost budgeted at the level of 61,000 standard hours was $242,500. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred $138,900 Budgeted variable factory overhead for 61,000 hours 140,300 Variance-favorable $(1,400) Fixed factory overhead volume variance: Normal productive capacity at 100% 59,900 hrs. Standard for amount produced 61,000 Productive capacity not used 1,100 hrs. Standard variable factory overhead rate x $4.00 Variance-unfavorable 4,400 Total factory overhead cost variance-unfavorable $3,000 Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. Variance Amount Favorable/Unfavorable Variable Factory Overhead Controllable Variance -1,400 Favorable Fixed Factory Overhead Volume Variance Favorable Total Factory Overhead Cost Variance 3,000 Favorable
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Loanable Funds Theory
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
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS