Calculating the Fixed Overhead Spending and Volume VariancesStandish Company manufactures consumer products and provided the following information for the month of February:Units produced131,000Standard direct labor hours per unit0.20Standard fixed overhead rate (per direct labor hour)$2.50Budgeted fixed overhead$65,000Actual fixed overhead costs$68,300Actual hours worked26,350Required:1. Calculate the fixed overhead spending variance using the formula approach.$ 3,300 ✔ Unfavorable2. Calculate the volume variance using the formula approach.500✔ Favorable3. What if 129,600 units had actually been produced in February? What impact would that have had? Indicate what the new varianceswould be below,Fixed Overhead Spending VarianceVolume VarianceUnfavorableUnfavorable

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Description: Calculating the Fixed Overhead Spending and Volume VariancesStandish Company manufactures consumer products and provided the following information for the month of February:Units produced131,000Standard direct labor hours per unit0.20Standard fixed

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Calculating the Fixed Overhead Spending and Volume Variances Standish Company manufactures consumer products and provided the following information for the month of February: Units produced Standard direct labor hours per unit Standard fixed overhead rate (per direct labor hour) Budgeted fixed overhead Actual fixed overhead costs Actual hours worked Required: 131,000 2. Calculate the volume variance using the formula approach. 500 ✓ Favorable 0.20 $2.50 $65,000 $68,300 26,350 1. Calculate the fixed overhead spending variance using the formula approach. 3,300✔ Unfavorable 3. What if 129,600 units had actually been produced in February? What impact would that have had? Indicate what the new would be below, Fixed Overhead Spending Variance Volume Variance Unfavorable Unfavorable

Calculating the Fixed Overhead Spending and Volume Variances Standish Company manufactures consumer products and provided the following information for the month of February: Units produced Standard direct labor hours per unit Standard fixed overhead rate (per direct labor hour) Budgeted fixed overhead Actual fixed overhead costs Actual hours worked Required: 131,000 2. Calculate the volume variance using the formula approach. 500 ✓ Favorable 0.20 $2.50 $65,000 $68,300 26,350 1. Calculate the fixed overhead spending variance using the formula approach. 3,300✔ Unfavorable 3. What if 129,600 units had actually been produced in February? What impact would that have had? Indicate what the new would be below, Fixed Overhead Spending Variance Volume Variance Unfavorable Unfavorable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Standard hours per unit of output Standard variable overhead rate 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 rate variance for the month? Multiple Choice TB MC Qu. 10-202 (Algo) A manufacturing company that has only one product... 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. C $1446 F saved SUGSF 3.80 direct labor-hours $11.15 per direct labor-hour Help 8,700 direct labor-hours $ 95,840 2,100 units Save & Exit
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Computation of Variable Cost Variances The following information pertains to the standard costs and actual activity for Repine Company for September: Standard cost per unit Direct materials Direct labor Activity for September Materials purchased Material A Material B Materials used Material A Material B Direct labor used Production output 3 units of material A x $8.00 per unit 2 units of material B x $4.00 per unit 2 hours x $15.00 per hour 7,000 units x $7.80 per unit 4,800 units x $4.50 per unit Materials price variance $ Materials quantity variance 6,430 units 3,950 units 4,100 hours x $15.50 per hour 2,000 units There were no beginning direct materials inventories. (a) Determine the materials price and quantity variances. Material A (b) Determine the labor rate and efficiency variances. Labor rate variance $ Labor efficiency variance $ ◆ → $ → Material B ◆ →
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Amos, Inc. uses a standard cost system with the following labor standards for one unit of product: standard hours 0.2 and standard wage rate $10. During January, Amos incurred 3,415 hours of direct labor and paid $33,606 in wages in production of 16,600 units. Calculate the direct labor rate and efficiency variances and indicate whether the variances are favorable or unfavorable. Direct labor rate variance Direct labor efficiency variance $ Click if you would like to Show Work for this question: Open Show.Work