Beverly Company has determined a standard variable overhead rate of $3.90 per direct labor hour and expects to incur 0.50 laborhours per unit produced. Last month, Beverly incurred 1,650 actual direct labor hours in the production of 3,400 units. The companyhas also determined that its actual variable overhead rate is $2.40 per direct labor hour.Required:Calculate the variable overhead rate and efficiency variances as well as the total amount of over- or underapplied variable overhead.Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zerovariance).Variable Overhead Rate VarianceVariable Overhead Efficiency VarianceOver- or Underapplied Variable Overhead

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Answered: Beverly Company has determined a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Terrell Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Variable manufacturing overhead O $46 U $2.30 per hour The company has reported the following actual results for the product for July: Actual output Actual direct labor-hours Actual variable overhead rate S 2.10 per hour Actual variable overhead cost $ 4,998 The variable overhead efficiency variance for the month is closest to: $42 F Standard Quantity or Hours per Unit of Output O $46 F O $42 U Standard Price or Rate 0.30 hours 8,000 units 2,380 hours
Perez Company established a predetermined fixed overhead cost rate of $37 per unit of product. The company planned to make 6,100 units of product but actually produced only 5,300 units. Actual fixed overhead costs were $233,200. Required a. Determine the fixed cost spending variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the fixed cost volume variance and indicate whether it is favorable (F) or unfavorable (U). Note: For all requirements, Select "None" if there is no effect (i.e., zero variance). a. Total spending variance b. Total volume variance
A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours. Standard hours per unit of output Standard variable overhead rate 3.60 DLHS $10.95 per DLH The following data pertain to operations for the last month: Actual direct labor-hours Actual total variable manufacturing overhead cost Actual output What is the variable overhead efficiency variance for the month? Multiple Choice $6,789 U $7,213 F $3,592 U $7,213 U 8,900 DLHS $ 95,820 2,300 units
You Did It! (YDI) has the following standards for direct labor: o Estimated quantity 8,900 direct labor hours o Estimated unit variable $48 per hour o Estimated fixed costs $18,000 YDI actually used 8,300 direct labor hours during production at an average hourly wage rate of $49.20, and actually incurred total fixed costs of $17,600. Using this information, answer the following questions. Please circle to identify the variance as favorable or unfavorable. What is the direct labor volume variance? Favorable or unfavorable?
SouthCo planned to use $35 of variable overhead per unit produced, but in the most recent period, it actually used $33 of variable overhead per unit produced. During this same period, the company planned to produce 100 units in 120 hours but actually produced 100 units in 150 hours. Calculate the variable overhead rate variance, the variable overhead efficiency variance, and the total variable overhead cost variance and complete the diagram. Please make sure your final answer(s) are accurate to the nearest whole number. Box 1 Box 2 Box 3 (Select one) x (Select one) (Select one) x (Select one) (Select one) x (Select one) Box 4 Variable Overhead Rate Variance (Select one) Box 6 Total Variable Overhead Cost Variance (Select one) Box 5 Variable Overhead Efficiency Variance (Select one)
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Beverly Company has determined a standard variable overhead rate of $4.00 per direct labor hour and expects to incur 0.50 labor hour per unit produced. Last month, Beverly incurred 1,700 actual direct labor hours in the production of 3,500 units. The company has also determined that its actual variable overhead rate is $2.40 per direct labor hour. Calculate the variable overhead rate and efficiency variances as well as the total amount of over- or underapplied variable overhead. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Variable Overhead Rate Variance $2,720 F Variable Overhead Efficiency Variance $200 F Over or under applied Variable Overhead??- how do I figure this out??
Feagin Company’s actual variable overhead was $73,000. Actual direct labor hours were 25,000 to make 20,000 finished products. The per-unit standard for direct labor hour is 1.5 hours, and the pre-determined variable overhead rate is $3 per direct labor hour. What were (1) the variable overhead spending variance (2) the variable overhead efficiency variance?

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