Calculating the Total Overhead Variance Standish Company manufactures consumer products and provided the following information for the month of February: Units produced 131,900 Standard direct labor hours per unit 0.2 Standard variable overhead rate (per direct labor hour) $3.40 Actual variable overhead costs $88,700 Actual hours worked 26,500 Required: 1. Calculate the total variable overhead variance. X Favorable 2. What if actual production had been 128,600 units? How would that affect the total variable overhead variance? Indicate what the new variance would be below X Unfavorable

Calculating the Total Overhead Variance Standish Company manufactures consumer products and provided the following information for the month of February: Units produced 131,900 Standard direct labor hours per unit 0.2 Standard variable overhead rate (per direct labor hour) $3.40 Actual variable overhead costs $88,700 Actual hours worked 26,500 Required: 1. Calculate the total variable overhead variance. X Favorable 2. What if actual production had been 128,600 units? How would that affect the total variable overhead variance? Indicate what the new variance would be below X Unfavorable

Name: Calculating the Total Overhead VarianceStandish Company manufactures c
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Calculating the Total Overhead VarianceStandish Company manufactures consumer products and provided the following information for the month of February: Calculating the Total Overhead VarianceStandish Company manufactures consumer products and provid

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Calculating the Total Overhead Variance

Standish Company manufactures consumer products and provided the following information for the month of February:

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

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

give the explanTION OF
Compute the total August variances for direct materials and conversion costs.
3
Please do not give solution in image format thanku
For direct labor:a. Compute the actual direct labor cost per hour for the month.b. Compute the labor rate variance. Julia Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard machine-hours. At standard, each unit of product requires one machine-hour to complete. The standard variable overhead is $1.75 per machine-hour and Budgeted Fixed Manufacturing Costs are $300,000 per year. The denominator level of activity is 150,000 machine-hours, or 150,000 units. Actual data for the year were as follows: Actual variable overhead cost $ 211,680 Actual fixed manufacturing overhead cost $ 315,000 Actual machine-hours 126,000 Units produced 120,000 Required: What are the predetermined variable and fixed manufacturing overhead rates for the year? Compute the variable overhead rate and efficiency variances for the year. Compute the fixed…
Prepare an income statement (through income before income tax) for presentation to management, using the following data from the records of Greenway Manufacturing Company for November of the current year: Administrative expenses $73,500 Cost of goods sold (at standard) 470,000 Direct materials quantity variance—favorable 1,200 Direct materials price variance—favorable 2,400 Direct labor time variance—unfavorable 900 Direct labor rate variance—favorable 500 Factory overhead volume variance—unfavorable 10,000 Factory overhead controllable variance—favorable 1,500 Sales 950,000 Selling expenses 165,800 If an amount box does not require an entry, leave it blank. Greenway Manufacturing Company Income Statement For Month Ended November 30 Sales $fill in the blank 1 Cost of goods sold - at standard fill in the blank 2 Gross profit - at standard $fill in the blank 3 Less variances from standard cost: Favorable Unfavorable…
Butrico Manufacturing Corporation uses a standard cost system, records materials price variances when direct materials are purchased, and prorates all variances at year-end. Variances associated with direct materials are prorated based on the balances of direct materials in the appropriate accounts, and variances associated with direct labor and manufacturing overhead are prorated to Finished Goods Inventory and to Cost of Goods Sold (COGS) on the basis of the relative direct labor cost in these accounts at year- end. The following information is for the year ended December 31: The company had no beginning inventories and no ending Work-in-Process (WIP) Inventory. It applies manufacturing overhead at 80% of standard direct labor cost. Finished goods inventory at 12/31: Direct materials Direct labor Applied manufacturing overhead Direct materials inventory at 12/31 Cost of goods sold for the year ended 12/31: Direct materials Direct labor Applied manufacturing overhead Direct materials…
PSc 3-4 Calculate Federal Income Tax Withholding Using the Percentage Method (pre-2020 Form W-4) For each employee listed, use the percentage method to calculate federal income tax withholding for an employee who has submitted a pre-2020 Form W-4. Refer to the Federal Tax Tables in Appendix A of your textbook. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. Publication 15-T (2020) 1: Tony Daniels (Married; 4 federal withholding allowances) earned weekly gross pay of $800. Federal income tax withholding = $ 2: Mario Gonzales (married; 5 federal withholding allowances) earned biweekly gross pay of $2,025. He participates in a flexible spending account, to which he contributes $100 during the period. Federal income tax withholding = $ 3: Angela Brown (single; 3 federal withholding allowances) earned monthly gross pay of $5,170. For each period, she makes a 401(k) contribution of 12%…
Cost data for Disksan Manufacturing Company for the month ended January 31 are as follows: Please see the attachments: a. Prepare a cost of goods manufactured statement for January.b. Determine the cost of goods sold for January.
Please provide answer in text (Without image)
enow.com stom Order < eBook Fixed overhead cost: Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 17,000 hours for production: Variable overhead cost: Indirect factory labor Power and light Indirect materials Total variable overhead cost LakeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed overhead cost Indirect factory labor Power and light Indirect materials Print Item Total variable cost Check My Work $40,560 11,470 20,200 $72,230 $44,200 12,410 20,400 Total factory overhead cost Tannin has available 21,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 16,000 hours for production. The actual fixed costs were as budgeted.…
Subject: acounting