Overhead variance, missing information. Consider the following two situations—cases A and B— independently. Data refer to operations for April 2017. For each situation, assume standard costing. Also assume the use of a exible budget for control of variable and xed manufacturing overhead based on machine-hours. CasesA(1)Fixed manufacturing overhead incurred(2) Variable manufacturing overhead incurred(3) Denominator level in machine-hours$27,000$132,900$10,51145,000(4) Standard machine-hours allowed for actual output achieved(5) Fixed manufacturing overhead (per standard machine-hour)Flexible-Budget Data:(6) Variable manufacturing overhead (per standard machine-hour)Budgeted fixed manufacturing overhead(8) Budgeted variable manufacturing overheadTotal budgeted manufacturing overhead4,700$ 2.10$130,500$23,375Additional Data:(10) Standard variable manufacturing overhead allocated(11) Standard fixed manufacturing overhead allocated(12)$10,340$19,975$ 580 F$ 1,490 F$ 1,680 FProduction-volume variance(13)Variable manufacturing overhead spending variance$ 457 U(14)Variable manufacturing overhead efficiency variance(15)Fixed manufacturing overhead spending variance(16) Actual machine-hours used"For standard machine-hours allowed for actual output produced.Fill in the blanks under each case. [Hint: Prepare a worksheet similar to that in Exhibit 8-4 (page 304). Fill inthe knowns and then solve for the unknowns.]Required

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Description: Overhead variance, missing information. Consider the following two situations—cases A and B— independently. Data refer to operations for April 2017. For each situation, assume standard costing. Also assume the use of a exible budget for control of va

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FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Overhead variance, missing information. Consider the following two situations—cases A and B— independently. Data refer to operations for April 2017. For each situation, assume standard costing. Also assume the use of a exible budget for control of variable and xed manufacturing overhead based on machine-hours.

Cases
A
(1)
Fixed manufacturing overhead incurred
(2) Variable manufacturing overhead incurred
(3) Denominator level in machine-hours
$27,000
$132,900
$10,511
45,000
(4) Standard machine-hours allowed for actual output achieved
(5) Fixed manufacturing overhead (per standard machine-hour)
Flexible-Budget Data:
(6) Variable manufacturing overhead (per standard machine-hour)
Budgeted fixed manufacturing overhead
(8) Budgeted variable manufacturing overhead
Total budgeted manufacturing overhead
4,700
$ 2.10
$130,500
$23,375
Additional Data:
(10) Standard variable manufacturing overhead allocated
(11) Standard fixed manufacturing overhead allocated
(12)
$10,340
$19,975
$ 580 F
$ 1,490 F
$ 1,680 F
Production-volume variance
(13)
Variable manufacturing overhead spending variance
$ 457 U
(14)
Variable manufacturing overhead efficiency variance
(15)
Fixed manufacturing overhead spending variance
(16) Actual machine-hours used
"For standard machine-hours allowed for actual output produced.
Fill in the blanks under each case. [Hint: Prepare a worksheet similar to that in Exhibit 8-4 (page 304). Fill in
the knowns and then solve for the unknowns.]
Required

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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