Actual Results Flexible Budget Manufacturing Overhead Allocated Amount $ 71,808 360,672 $ 80,640 $ 80,640 Variable Fixed 351,360 368,640 Budgeted number of output units: 915 Planned allocation rate: 2 machine-hours per unit Actual number of machine-hours used: 1,632 Static-budget variable manufacturing overhead costs: $76,860 Compute the following quantities (you should be able to do so in the prescribed order): Required 1. Budgeted number of machine-hours planned 2. Budgeted fixed manufacturing overhead costs per machine-hour 3. Budgeted variable manufacturing overhead costs per machine-hour 4. Budgeted number of machine-hours allowed for actual output produced 5. Actual number of output units 6. Actual number of machine-hours used per output unit

Actual Results Flexible Budget Manufacturing Overhead Allocated Amount $ 71,808 360,672 $ 80,640 $ 80,640 Variable Fixed 351,360 368,640 Budgeted number of output units: 915 Planned allocation rate: 2 machine-hours per unit Actual number of machine-hours used: 1,632 Static-budget variable manufacturing overhead costs: $76,860 Compute the following quantities (you should be able to do so in the prescribed order): Required 1. Budgeted number of machine-hours planned 2. Budgeted fixed manufacturing overhead costs per machine-hour 3. Budgeted variable manufacturing overhead costs per machine-hour 4. Budgeted number of machine-hours allowed for actual output produced 5. Actual number of output units 6. Actual number of machine-hours used per output unit

Name: Comprehensive variance analysis. Cooking Whiz manufactures premium foo
Uploaded: 2024-03-20T06:33:06.000Z
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Description: Comprehensive variance analysis. Cooking Whiz manufactures premium food processors. The following are some manufacturing overhead data for Cooking Whiz for the year ended December 31, 2017: Actual ResultsFlexible BudgetManufacturing OverheadAllocated

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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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Comprehensive variance analysis. Cooking Whiz manufactures premium food processors. The following are some manufacturing overhead data for Cooking Whiz for the year ended December 31, 2017:

Actual Results
Flexible Budget
Manufacturing Overhead
Allocated Amount
$ 71,808
360,672
$ 80,640
$ 80,640
Variable
Fixed
351,360
368,640
Budgeted number of output units: 915
Planned allocation rate: 2 machine-hours per unit
Actual number of machine-hours used: 1,632
Static-budget variable manufacturing overhead costs: $76,860
Compute the following quantities (you should be able to do so in the prescribed order):
Required
1. Budgeted number of machine-hours planned
2. Budgeted fixed manufacturing overhead costs per machine-hour
3. Budgeted variable manufacturing overhead costs per machine-hour
4. Budgeted number of machine-hours allowed for actual output produced
5. Actual number of output units
6. Actual number of machine-hours used per output unit

Definition Definition Analysis of a difference between planned and actual behavior. After analyzing differences, companies find the reasons for variance so that the necessary steps should be taken to correct that variance.

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