Compute the net overhead variance (indicate over- or underapplied manufacturing overhead)
Q: Define direct labour cost variance.
A: Definition: Variance analysis: Variance analysis is the process of evaluating the differences…
Q: What is the variable manufacturing overhead rate variance?
A: Variable Manufacturing Rate Variance = php300 (Favourable) Refer step 2 for explanation
Q: Why is the direct materials usage variance allocated only to WIP Inventory, Finished Goods…
A: Solution:- Introduction:- The following formula used to calculation as follows:- materials usage…
Q: The total overhead variance is equal to the sum of the controllable variance and the volume…
A: Answer: Total overhead variance is the difference between actual overhead and applied overhead.
Q: Direct Materials and Direct Labor Variance Analysis
A: a. Determine standard cost per unit Direct material standard cost per unit = Std. number of lbs of…
Q: Define variable overhead cost variance.
A:
Q: From the following information calculate Labour cost Variance, Labour Rate Variance and Labour…
A: Variance can be defined as the alteration between the actual amounts and the budgets being set. The…
Q: etermine the following: Total material price variance Total material usage (quantity) variance Labor…
A: Variable overhead refers to the expenses which fluctuate with the change in the number of goods or…
Q: (a) Calculate the material price variance (b) Calculate the material quantity variance (c) Calculate…
A: Material Price Variance =( Standard Price - Actual Price )× Actual Quantity Material Quantity…
Q: Using direct labour hours as the cost driver, the journal entry to dispose of the manufacturing…
A: “Since you have asked multiple question, we will solve the first question for you. If youwant any…
Q: a. Analyze the factory overhead variance of Golden Manufacturers Inc., based on the given data.
A: Factory Overhead means all indirect costs related to factory or production of goods. Factory…
Q: Who is generally responsible for the materials price variance? The materials quantity variance? The…
A: Material Price Variance is the difference between the standard price and the actual price for the…
Q: What is the difference between the Variable Overhead Spending Variance and Variable Overhead…
A: The variance is the difference between the actual data and standard output of the production.
Q: A variance is the difference between standards and actual performance with materials, labor, or…
A: Variances are used for the performance evaluation of the company. It is also helpful for the…
Q: The difference between actual Cost and standard cost is known as: Variance Profit Differential Cost
A: Standard Cost is the estimated cost expected to be incurred by the company for a particular period…
Q: rd allocation base C. actual and standard overhead rates D. actual units and actual overhead rates
A: Given: To explain the correct option with the given as,
Q: What is the overall variance in overhead?
A: Overhead refers to secondary expenditures spent during the manufacturing and distribution of…
Q: 1. Compute the price and efficiency variances of direct materials and direct manufacturing labor.
A:
Q: For the purpose of calculating overapplication or overapplication of overheads, the applied…
A: In cost accounting, budgeting plays a key role in the control of the cost of the goods in the…
Q: Determine a detailed list of possible causes of any material, labour or fixed overhead cost…
A: For any manufacturing industry It is important to set standards for the various activities like…
Q: A. Assume the variance is material, what is the variance share of the Finished goods inventory acc?…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
Q: Under Standard Costing System, direct material price variance shall be appropriately computed using…
A: Standard costing means where standard is set for various cost element and actual cost is then…
Q: The company applies variable manufacturing overhead to products on the basis of direct labour hours.…
A: Variable Overhead Efficiency Variance is the difference between the standard budgeted time and…
Q: Compute the price and efficiency variances of direct materials and direct manufacturing
A: Standard costing - This is the method of costing where standard is determined and then its compared…
Q: Explain this phrase, "Variable Overhead Efficiency Variance: It shows the effect of change in labour…
A: Variable Overhead Efficiency Variance: The difference between the actual time it takes to create a…
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: This refers to the difference between actual and standard hours multiplied by the standard labor…
A: Variance is the difference between actual and budgeted.
Q: MATERIALS MIX VARIANCE
A:
Q: 1. Compute the following variances for May: a. Materials price and quantity variances. b. Labor rate…
A: Since you have asked a question with multiple sub parts, we will solve the first three sub parts…
Q: Calculate labor rate and efficiency variances and the controllable overhead variance and the…
A: 1. Labor Rate Variance: = (Actual Hours x Standard Rate) - (Actual Hours x Actual Rate) 2. Labor…
Q: Required: the variance analysis for labor.
A: 1. Direct labor Variance = (standard rate x Standard hrs for actual output) - (Actual rate x Actual…
Q: standard cost
A: Standard cost systems are cost accounting systems in which standard is set for each item of cost and…
Q: How is the fixed overhead volume variance different from the other variances?
A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost.…
Q: Compute overhead variances using a three-variance approach.
A: 1. Budgeted variance 2. Volume variance 3. Overhead variance
Q: 4. What type of variances are computed for materials, labour, and factory overhead?
A: Cost variance is the difference between the cost actually incurred and the budgeted or planned…
Q: One way of analyzing the fixed factory overhead variance is breaking it down into
A: Fixed factory overhead variance can be defined as the difference of the actual and standard fixed…
Q: Compute the actual manufacturing overhead. Compute the applied manufacturing overhead. Compute the…
A: Solution:- Calculation of the actual manufacturing overheads.
Q: What is total overhead variance?
A: Overhead means indirect costs incurred in the production and selling of goods. It can be…
Q: a. Direct materials price variance b. Direct materials quantity variance c. Direct materials cost…
A: Material variance is the difference between the actual cost of direct materials and the expected…
Q: Define direct labour variances.
A: Definition: Variance Analysis: Variance analysis is the process of evaluating the differences…
Q: Briefly describe various variances relating to factory overheads. How material, labor and overhead…
A: Variance The difference between the standard/budgeted and actual figures of costs, profits, or sales…
Q: Define product cost variances.
A: Product Cost variances occur when the standard cost is higher or lower than the actual costs They…
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.
Compute the net
Step by step
Solved in 2 steps
- Journalizing the distribution of service department costs to production departments Required: Using your solution to P4-7, prepare journal entries for the following: The distribution of the total factory overhead of $79,400 to the individual production and service departments where it originated. The distribution of the Building Maintenance overhead to the appropriate other departments. The distribution of the Factory Office overhead to the appropriate other departments.Selected information from Skylar Studios shows the following: Prepare journal entries to record the following: raw material purchased direct labor incurred depreciation expense (hint: this is part of manufacturing overhead) raw materials used overhead applied on the basis of $0.50 per machine hour the transfer from department 1 to department 2Aero Aluminum Inc. uses a process cost system. The records for May show the following information: Using the data in P5-9, draft the journal entries to record: 1. The cost of goods received from Rolling during the month. 2. The production costs incurred in Converting during the month. 3. The cost of goods completed and transferred to finished goods during the month.
- Recording issuing of materials Materials issued for the current month are as follows a. Determine the amount of materials transferred lo Work in Process and Factory Overhead for the current month. b.Illustrate (he effect on the accounts and financial statements of the materials transferred in (a).:The following manufacturing costs data are available for Division 911; Work in process, January 1, 2018: Job No. Factory Ouerhead Total P145,000 Materials Labor 156 P35,000 PG0,000 P44,000 Costa for 2018 Incurred by Jobe Total P16,000 158.000 42.000 10.000 Materials Labor Other 156 157 158 159 P- P2,000 52,000 24,000 8,000 P14,000 106,000 18,000 2.000 Not Incurred by Joba Indirect materials and sagddns Employee beneits Depreciation Supervision 30,000 30,000 106,000 46,000 24.000 40,000 Indirect labor 106,000 46,000 24,000 40,000 Factory overhead for 2018: Budgeted Manufacturing Overhead: Variable - Indirect materials and supplies Indirect labor Employee benefits Depreciation Supervision P 32,000 112,000 48,000 24,000 40,000 Fixed Total P256,000 Budgeted Direct Labor Costs P160,000 Manufacturing Overhead rate per direct labor cost (P256,000/P160,000) 160% Compute the actual manufacturing overhead. Compute the applied manufacturing overhead. Compute the net overhead variance (indicate…Shubarquduq Coal Mine's (SCM) manufacturing costing system is comprised of a three-part classification of direct materials, direct manufacturing labor, and manufacturing overhead costs. The below information is extracted from the accounting system of the SCM. For Particular Date For Year of 2025 WIP inventory, 01.01.2025 $14 Plant utilities $ 30 DM inventory, 31.12.2025 23 Indirect manufacturing labor 61 FG inventory, 31.12.2025 63 Depreciation—plant and equipment 81 Accounts payable, 31.12.2025 40 Revenues 951 Accounts receivable, 01.01.2025 27 Miscellaneous manufacturing overhead 32 WIP inventory, 31.12.2025 7 Marketing, distribution, andcustomer-service costs 245 FG inventory, 01.01.2025 55 Direct materials purchased 336 Accounts receivable, 31.12.2025 40 Direct manufacturing labor 109 Accounts payable, 01.01.2025 36 Plant supplies…
- Shubarquduq Coal Mine's (SCM) manufacturing costing system is comprised of a three-part classification of direct materials, direct manufacturing labor, and manufacturing overhead costs. The below information is extracted from the accounting system of the SCM. For Particular Date For Year of 2025 WIP inventory, 01.01.2025 $14 Plant utilities $ 30 DM inventory, 31.12.2025 23 Indirect manufacturing labor 61 FG inventory, 31.12.2025 63 Depreciation—plant and equipment 81 Accounts payable, 31.12.2025 40 Revenues 951 Accounts receivable, 01.01.2025 27 Miscellaneous manufacturing overhead 32 WIP inventory, 31.12.2025 7 Marketing, distribution, andcustomer-service costs 245 FG inventory, 01.01.2025 55 Direct materials purchased 336 Accounts receivable, 31.12.2025 40 Direct manufacturing labor 109 Accounts payable, 01.01.2025 36 Plant supplies…Shubarquduq Coal Mine's (SCM) manufacturing costing system is comprised of a three-part classification of direct materials, direct manufacturing labor, and manufacturing overhead costs. The below information is extracted from the accounting system of the SCM. For Particular Date For Year of 2025 WIP inventory, 01.01.2025 $14 Plant utilities $ 30 DM inventory, 31.12.2025 23 Indirect manufacturing labor 61 FG inventory, 31.12.2025 63 Depreciation—plant and equipment 81 Accounts payable, 31.12.2025 40 Revenues 951 Accounts receivable, 01.01.2025 27 Miscellaneous manufacturing overhead 32 WIP inventory, 31.12.2025 7 Marketing, distribution, andcustomer-service costs 245 FG inventory, 01.01.2025 55 Direct materials purchased 336 Accounts receivable, 31.12.2025 40 Direct manufacturing labor 109 Accounts payable, 01.01.2025 36 Plant supplies…Shubarquduq Coal Mine's (SCM) manufacturing costing system is comprised of a three-part classification of direct materials, direct manufacturing labor, and manufacturing overhead costs. The below information is extracted from the accounting system of the SCM. For Particular Date For Year of 2025 WIP inventory, 01.01.2025 $14 Plant utilities $ 30 DM inventory, 31.12.2025 23 Indirect manufacturing labor 61 FG inventory, 31.12.2025 63 Depreciation—plant and equipment 81 Accounts payable, 31.12.2025 40 Revenues 951 Accounts receivable, 01.01.2025 27 Miscellaneous manufacturing overhead 32 WIP inventory, 31.12.2025 7 Marketing, distribution, andcustomer-service costs 245 FG inventory, 01.01.2025 55 Direct materials purchased 336 Accounts receivable, 31.12.2025 40 Direct manufacturing labor 109 Accounts payable, 01.01.2025 36 Plant supplies…
- FI Pittman Company uses normal costing in its job-costing system. Partially completed T-accounts and additional information for Pittman for 2020 are as follows: (Click the icon to view the T-accounts.) i (Click the icon to view the additional information.) Read the requirements. Requirement 1. What was the amount of direct materials issued to production during 2020? Direct materials issued to production during 2020 was T-accounts Direct Materials Control 40,000 1-1-2020 139,000 Manufacturing Overhead Control 512,000 Work-in-Process Control 230,000 1-1-2020 Dir. Manuf. labor 40,000 Print 350,000 Manufacturing Overhead Allocated Done Finished Goods Control 8,000 1-1-2020 923,380 Cost of Goods Sold - 758,100 X More Info a. Direct manufacturing labor wage rate was $10 per hour. b. Manufacturing overhead was allocated at $13 per direct manufacturing labor-hour. 4. 5. C. Requirements 6. 7. During the year, sales revenues were $1,060,000, and marketing and distribution costs were $128,000. 1.…Vieute Company operates with two producing departments, P1 and P2, nd two service departments, S1 and S2. Actual manufacturing overhead bofore allocation of service department costs, together with the usage of service from the service departments, is as follows: Actual Manufacturing Overhead Before Allocation of Service Departmental Costs Services provided by S2 Department si P1 P 40,000 40% 20% 50 40 47,600 14,400 18,000 P2 si S2 40 10 P120,000 100% 100% What is the total manufacturing overhead for P1 (Producing Department 1), after allocating service costs to producing departments. Using data for Vicente, compute the total manufacturing overhead for P1, allocating service department costs stepwise, beginning with department 52. After a department expenses have been allocated, no expenses are assigned back to it. Based on Vicente data: Determine the total manufacturing overhead (including service department costs) for P2 using the reciprocal method.The T-account showing the manufacturing overhead activity for Kenneth Corp. for 2018 is as follows: Manufacturing Overhead 210,000 196,000 Read the requirements. Requirement 1. What is the actual manufacturing overhead? Actual manufacturing overhead: S Requirement 2. What is the allocated manufacturing overhead? Allocated manufacturing overhead: S Requirement 3. Is manufacturing overhead underallocated or overallocated? By how much? Manufacturing overhead is by $