Edney Company employs a standard cost system for product costing. The per-unit standard cost of its product is:Raw materialsDirect labor (2 direct labor hours x $8.00 per hour)Manufacturing overhead (2 direct labor hours x $12.20 per hour)$ 14.0016.0024.40$ 54.40Total standard cost per unitThe manufacturing overhead rate is based on a normal capacity level of 600,000 direct labor hours. The firm has the following annualmanufacturing overhead budget:VariableFixed$ 3,960,0003,360,000$ 7,320,000Edney incurred $434,550 in direct labor cost for 54,100 direct labor hours to manufacture 26,000 units in November. Other costsincurred in November include $296,000 for fixed manufacturing overhead and $342,000 for variable manufacturing overhead.Required:1. Determine each of the following for November. [Note: Indicate whether each variance is favorable (F) or unfavorable (U).]a. The variable overhead rate (spending) variance.b. The variable overhead efficiency variance.c. The fixed overhead budget (spending) variance.d. The fixed overhead volume variance.e. The total amount of under- or overapplied manufacturing overhead (i.e., the total manufacturing overhead cost variance for theperiod).2. Prepare the following four journal entries:(a) to record actual variable overhead costs,(b) to record actual fixed overhead costs,(c) to record standard overhead costs applied to production, and(d) to record all four overhead cost variances.The company uses a single account, Factory Overhead, to record all overhead costs. Assume that the actual variable manufacturingoverhead consists of utilities payable of $168,000, indirect materials of $112,000 (all materials, direct and indirect, are recorded in asingle account, Materials Inventory), and $62,000 depreciation on factory equipment (determined under the units-of-productionmethod). Assume that the fixed manufacturing overhead consists of accrued salaries of $66,000 and factory depreciation of$230,000. All accrued salaries should be recorded in a single account, Accrued Payroll.3. Prepare the appropriate journal entry to close all manufacturing overhead variances to the cost of goods sold (COGS) account.(Assume the cost variances you calculated above are for the year, not the month.)Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Determine each of the following for November. [Note: Indicate whether each variance is favorable (F) or unfavorable (U).]a. The variable overhead rate (spending) variance.b. The variable overhead efficiency variance.c. The fixed overhead budget (spending) variance.d. The fixed overhead volume variance.e. The total amount of under- or overapplied manufacturing overhead (i.e., the total manufacturing overhead cost variance forthe period).(For all requirements, do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)1a. The variable overhead rate (spending) variance.1b. The variable overhead efficiency variance.1c. The fixed overhead budget (spending) variance.1d. The fixed overhead volume variance.1e.The total amount of under- or overapplied manufacturing overhead (i.e., thetotal manufacturing overhead cost variance for the period).Show less▲

Name: Edney Company employs a standard cost system for product costing. The
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Edney Company employs a standard cost system for product costing. The per-unit standard cost of its product is:Raw materialsDirect labor (2 direct labor hours x $8.00 per hour)Manufacturing overhead (2 direct labor hours x $12.20 per hour)$ 14.0016.

Variance analysis is the difference between actual costs and budgeted costs of the direct materials,…

Business

Accounting

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine each of the following for November. [Note: Indicate whether each variance is favorable (F) or unfavorable (U).] a. The variable overhead rate (spending) variance. b. The variable overhead efficiency variance. c. The fixed overhead budget (spending) variance. d. The fixed overhead volume variance. e. The total amount of under- or overapplied manufacturing overhead (i.e., the total manufacturing overhead cost variance for the period). (For all requirements, do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Show less▲ 1a. The variable overhead rate (spending) variance. 1b. The variable overhead efficiency variance. 1c. The fixed overhead budget (spending) variance. 1d. The fixed overhead volume variance. 1e. The total amount of under- or overapplied manufacturing overhead (i.e., the total manufacturing overhead cost variance for the period)

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine each of the following for November. [Note: Indicate whether each variance is favorable (F) or unfavorable (U).] a. The variable overhead rate (spending) variance. b. The variable overhead efficiency variance. c. The fixed overhead budget (spending) variance. d. The fixed overhead volume variance. e. The total amount of under- or overapplied manufacturing overhead (i.e., the total manufacturing overhead cost variance for the period). (For all requirements, do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Show less▲ 1a. The variable overhead rate (spending) variance. 1b. The variable overhead efficiency variance. 1c. The fixed overhead budget (spending) variance. 1d. The fixed overhead volume variance. 1e. The total amount of under- or overapplied manufacturing overhead (i.e., the total manufacturing overhead cost variance for the period)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Unfavorable Materials Efficiency Variance, write 3 to 5 causes, implications, effects, and/or changes you need to make with the budget.
dont give answer in inage format
Please do not give solution in image format thanku
Distinguish among a budget, a performance report, and a variance. Question content area bottom Part 1 A. A budget measures the differences between a performance report and a variance; a performance report compares actual results with the budget; and a variance is a quantitative expression of a plan of action. B. A budget compares the performance report with variances; a performance report measures the differences between budget and actual; and a variance is a quantitative expression of a plan of action. C. A budget compares actual results with the performance report; a performance report is a quantitative expression of a plan of action; and a variance measures the differences between budget and actual. D. A budget is a quantitative expression of a plan of action; a performance report compares actual results with the budget; and a variance measures the differences between budget and actual.
4. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) The drop down options for the box next to "expected production volume" and the box next to"production level achieved" are: 65%, 70%, 75%, 80%, 85%, 90%, 95%, 100% of capacity the drop down options for the box next to "volume variance" are: favorable, unfavorable, no variance. The drop down option for the boxes under "variable overhead costs" are: depreciation-building, depreciation-machinery, direct labor, direct materials, indirect labor, indirect materials, maintenance, power, supervisory salaries, taxes&insurance. For the last row in variable overhead costs (the column above) "fixed over head costs" the drop down options are: contribution margin, gross profit, income from operations, total fixed overhead costs, total variable overhead costs. The drop down options for the boxes…
Please do not give solution in image format thanku
Please do not give solution in image format thanku
1. Compute for Spending Variance 2. Compute for Variable Overhead Efficiency Variance 3. Compute for Controllable Variance
3. Compute the direct labor variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to two decimal places.) The drop down options under "actual cost" "standard cost" and the middle box for the first row are: actual rate, standard rate The drop down options for the left bottom 3 rows are: total variable overhead cost variance, variable overhead efficiency variance, variable overhead spending variance, volume variance, direct material variance, Direct labor efficiency variance, direct labor rate variance, direct materials price variance, direct materials quantity variance. the drop down options for the right yellow 3 columns are: favorable, unfavorable, no variance please use the exact format as shown in photos. Thank you !
Please do not give solution in image format thanku
please do not Give image format
7 part 4