f. Calculate the variable overhead spending variance for Job Alpha g. Calculate the variable overhead efficiency variance for Job Alpha h. What is the company’s fixed overhead spending variance 6. A company has the following information for Job Alpha during July:Units produced1,000Actual materials used (and purchased)$5,250 Ibs.Actual materials cost4.80 per Ib.Actual labor hours incurred2,552Actual labor rate$ 21.25 per hourWork in process, July 1Work in process, July 31The company applies manufacturing overhead to jobs based on direct labor hours.Additional information for the company in July is as follows:Total estimated labor hours45,232Standard materials per unit5.00 Ibs.Standard materials cost$5.00 per Ib.Standard labor hours per unit2.75 hoursStandard labor rate$22.00 per hourStandard variable overhead3.00 per labor hourStandard fixed overhead*5.00 per labor hour*based on 45,232 labor hoursActual total output in units16,500Actual total labor hours43,7252.90 per labor hour$ 220,000Actual variable overheadActual total fixed overhead

Name: f. Calculate the variable overhead spending variance for Job Alpha g.
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: f. Calculate the variable overhead spending variance for Job Alpha g. Calculate the variable overhead efficiency variance for Job Alpha h. What is the company’s fixed overhead spending variance 6. A company has the following information for Job Alp

Answered: Image /qna-images/answer/aecf54f2-6cd8-4f84-9b55-645e2b1f2475.jpg

Answered: Calculate the variable overhead…

Business

Accounting

Calculate the variable overhead spending variance for Job Alpha g. Calculate the variable overhead efficiency variance for Job Alpha h. What is the company’s fixed overhead spending variance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Using more highly skilled direct laborers might affect which of the following variances a. variable…

A: The difference between the actual time taken to create a product and the time allocated for it is…

Q: Under the 3 variance method for analyzing overhead, the difference between the actual factory…

A: Under the 3 variance method for analyzing overhead, the difference between the actual factory…

Q: In cost accounting, what is the purpose of job costing? a. To allocate overhead costs to products b.…

A: Cost accounting is a managerial accounting process that deals with capturing, categorising, and…

Q: PROBLEM III At the beginning of the school year. Sheldon Allman decided to prepare a cash budget for…

A: Cash budget is one of the useful budget being prepared in business. It shows all expected cash…

Q: At the beginning of the year, you estimated the following - Production - 75,000 units Raw Material -…

A: Variance: It is the difference between budgeted and actual expenditures and revenue.

Q: The relevant range of activity costing is: Select one: O a. Is the cost that causes change in total…

A: Under activity costing, indirect costs or overhead are allocated to products or jobs on the basis of…

Q: Hiring of less qualified workers B.An excess of material usage C.Material price increase D.Utilities…

A: Concept introduction: Direct labor Rate variance: this variance shows the difference of standard…

Q: The controllable variance measures a. operating results at more than normal capacity b. operating…

A: Standard costs are estimates of the actual costs in a company’s production processThen, the actual…

Q: How are overhead variances useful in nonmanufacturing settings? Can you think of an example?

A: All overhead variances, even those incurred outside the manufacturing function, are undoubtedly…

Q: Labour efficiency variance Fixed overhead price variance Fixed overhead efficiency variance

A: Labour efficiency varianceLabour Efficiency Variance is the difference between the standard labour…

Q: Where are variances ultimately charged in a standard costing system? Multiple Choice Cost of…

A: Standard costing is a type or form of costing system in which standard costs are compared with…

Q: A price variance measures: Group of answer choices How good a company is in keeping its unit costs…

A: The objective of the question is to understand what a price variance measures in the context of…

Q: List the direct labor variances, and briefly describe each.

A: Labor variance arises when the actual expenses associated with a labor activity varies from the…

Q: Premium Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2024,…

A: Direct material variance are of 2 types :- 1. Direct material quantity variance. 2. Direct material…

Q: please solve for these questions: b-1. What is the labor efficiency variance? b-2. What is the…

A: Variance analysis is a method of measuring the difference between the standard numbers expected by…

Q: Describe planning for variable overhead costs.

A: Variable Cost: The cost which is not fixed is called a variable cost. This cost is directly…

Q: **Question:** Which method is commonly used in accounting to compare actual costs with standard…

A: Activity based costing - It assigns overhead costs to products based on activities they require

Q: Most companies compute the materials price variance when materials are purchased. Group of choices…

A: SOlution: True. This is because Most companies compute the materials price variance when materials…

Q: The variable overhead spending variance has to do with the efficient use of The overhead items. All…

A: Variance: The difference between the actual cost or price and the budgeted (standard) cost or price…

Q: what is the Total factory overhead cost variance?

A: Cost variance is the variance which is measured by the company so that the decision and it can be…

Q: Variable manufacturing overhead costs are treated as period costs under both absorption and variable…

A: Variable manufacturing overhead cost is treated as product cost under both absorption and variable…

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.

Topic Video

Question

f. Calculate the variable overhead spending variance for Job Alpha

g. Calculate the variable overhead efficiency variance for Job Alpha

h. What is the company’s fixed overhead spending variance

6. A company has the following information for Job Alpha during July:
Units produced
1,000
Actual materials used (and purchased)
$
5,250 Ibs.
Actual materials cost
4.80 per Ib.
Actual labor hours incurred
2,552
Actual labor rate
$ 21.25 per hour
Work in process, July 1
Work in process, July 31
The company applies manufacturing overhead to jobs based on direct labor hours.
Additional information for the company in July is as follows:
Total estimated labor hours
45,232
Standard materials per unit
5.00 Ibs.
Standard materials cost
$
5.00 per Ib.
Standard labor hours per unit
2.75 hours
Standard labor rate
$
22.00 per hour
Standard variable overhead
3.00 per labor hour
Standard fixed overhead*
5.00 per labor hour
*based on 45,232 labor hours
Actual total output in units
16,500
Actual total labor hours
43,725
2.90 per labor hour
$ 220,000
Actual variable overhead
Actual total fixed overhead

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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.

Similar questions

Under the three-variance method for analyzing factory overhead, whi.ch of the following is used in the computation of the spending variance? efficiency variance volume variance spending variance idle capacity variance
How do you calculate the predetermined overhead rate do you have an example
An overhead absorption rate based on direct labour cost is known as the: A. Direct labour hour rate B. Direct labour cost percentage rate C. Direct labour mix rate D. Direct labour optimum rate Reset Selection
When is the direct labor time variance favorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price paid is less than the standard price
When used as the denominator in the calculation of an overhead rate, which of the following will cause the least amount of overhead to be applied? a. Theoretical activity level b. Expected activity level c. Practical activity level d. Normal activity level
What is a key difference between variable costing and absorption costing? a. The usage of homogenous cost pools. b. The classification of fixed factory overhead. c. classification of direct materials and labor. d. The choice of allocation base.
iv) Labour rate variance v) Labour efficiency variance vi) Overhead variances (both) d.Comment on your calculations produced in c above.
Which of the following is a correct equation to calculate the fixed overhead production-volume variance? a. budgeted fixed overhead costs − fixed overhead costs allocated for actual output b. static budget amount − flexible budget amount c. actual costs incurred − fixed overhead costs allocated for actual output d. flexible budget amount − actual costs incurred
Which of the following statements Is true? Multiple Choice The material quantity variance is recorded when overhead is applied to production. The material price and the material quantity variances are recorded at the same time., The materials quantity variance is recorded when materials are used in production. The materials quantity variance is recorded when materials are purchased.
The following direct materials and direct labor data pertain to the operations of Sandhill Company for the month of August. Costs Actual labor rate Actual materials price Standard labor rate Standard materials price $13 $120 $12.50 $124 Quantities per hour per ton per hour per ton Actual hours incurred and used Actual quantity of materials purchased and used Standard hours used Standard quantity of materials used 4,900 hours 2,000 tons 4,960 hours 1,990 tons
а. Standard Cost per Unit for Direct Materials and Direct Labor b. Direct Materials Price Variance Wrong Direct Materials Quantity Variance Wrong Total Direct Materials Cost Variance Wrong с. Direct Labor Rate Variance Wrong Direct Labor (Time) Efficiency Variance Wrong Total Direct Labor Cost Variance Wrong
The following direct materials and direct labor data pertain to the operations of Sunland Company for the month of August. Costs Actual labor rate Actual materials price Standard labor rate Standard materials price $13 $290 $12.50 per hour per ton per hour $292 per ton Quantities. Actual hours incurred and used Actual quantity of materials purchased and used Standard hours used Standard quantity of materials used. 4,200 hours 1,000 tons 4,290 hours 990 tons