Please answer a,b Sunland Company manufactures deep-sea fishing rods, which it distributes internationally through a chain ofwholesalers. The following data are taken from the budget prepared at the beginning of the year by Sunland'scontroller. The company applies overhead on the basis of machine hours.Annual BudgetMay BudgetVariable manufacturing overhead$1,540,000$140,000Fixed manufacturing overhead$1,200,000$100,000Direct labor hours48,0004,000Machine hours220,00020,000During the month of May, Sunland used 4,200 direct labor hours and 21,600 machine hours. The flexible budget forthe month allowed 4,000 direct labor hours and 21,000 machine hours. Actual fixed manufacturing overheadincurred was $101,200; variable manufacturing overhead incurred was $150,200.(a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimalplaces, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,725. If variance is zero, select "NotApplicable" and enter 0 for the amounts.)2$FavorableVariable overhead spending varianceUnfavorableVariable overhead efficiency variance (b) Calculate the fixed overhead spending variance for May. (If variance is zero, select "Not Applicable" andenter 0 for the amounts.)Fixed overhead spending variance%24

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Answered: Sunland Company manufactures deep-sea…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Please answer a,b

Sunland 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 Sunland's
controller. The company applies overhead on the basis of machine hours.
Annual Budget
May Budget
Variable manufacturing overhead
$1,540,000
$140,000
Fixed manufacturing overhead
$1,200,000
$100,000
Direct labor hours
48,000
4,000
Machine hours
220,000
20,000
During the month of May, Sunland used 4,200 direct labor hours and 21,600 machine hours. The flexible budget for
the month allowed 4,000 direct labor hours and 21,000 machine hours. Actual fixed manufacturing overhead
incurred was $101,200; variable manufacturing overhead incurred was $150,200.
(a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal
places, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,725. If variance is zero, select "Not
Applicable" and enter 0 for the amounts.)
2$
Favorable
Variable overhead spending variance
Unfavorable
Variable overhead efficiency variance

(b) Calculate the fixed overhead spending variance for May. (If variance is zero, select "Not Applicable" and
enter 0 for the amounts.)
Fixed overhead spending variance
%24

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Oriole 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 Oriole’s controller. The company applies overhead on the basis of machine hours.

	Annual Budget	May Budget
Variable manufacturing overhead	$2,665,200	$240,000
Fixed manufacturing overhead	$1,204,200	$100,350
Direct labor hours	48,600	4,050
Machine hours	222,100	20,000

During the month of May, Oriole used 4,220 direct labor hours and 21,820 machine hours. The flexible budget for the month allowed 4,300 direct labor hours and 21,330 machine hours. Actual fixed manufacturing overhead incurred was $109,200; variable manufacturing overhead incurred was $259,040.

(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 0 for the amounts.)

Variable overhead spending variance		$enter the variable overhead spending variance in dollars	select an option


Variable overhead efficiency variance		$enter the variable overhead efficiency variance in dollars	select an option

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