Crystal Glassware Company has the following standards and flexible-budget data. Standard variable-overhead rate Standard quantity of direct labor Budgeted fixed overhead Budgeted output $6 per direct-labor hour 2.0 hours per unit of output Actual results for April are as follows: Actual output Actual variable overhead Actual fixed overhead Actual direct labor $ 110,000 27,500 units 22,000 units $ 352,000 $ 106,700 55,000 hours
Crystal Glassware Company has the following standards and flexible-budget data. Standard variable-overhead rate Standard quantity of direct labor Budgeted fixed overhead Budgeted output $6 per direct-labor hour 2.0 hours per unit of output Actual results for April are as follows: Actual output Actual variable overhead Actual fixed overhead Actual direct labor $ 110,000 27,500 units 22,000 units $ 352,000 $ 106,700 55,000 hours
Chapter1: Financial Statements And Business Decisions
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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.
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![Crystal Glassware Company has the following standards and flexible-budget data.
Standard variable-overhead rate
Standard quantity of direct labor
Budgeted fixed overhead
Budgeted output
$6 per direct-labor hour
2.0 hours per unit of output
Actual results for April are as follows:
Actual output
Actual variable overhead
Actual fixed overhead
Actual direct labor
$ 110,000
27,500 units
22,000 units
$352,000
$ 106,700
55,000 hours](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd08147b4-062e-42d4-b5f0-c0c53f447d52%2F8b008409-b506-409b-840b-50f7f0a445a0%2Fam6vfnr_processed.png&w=3840&q=75)
Transcribed Image Text:Crystal Glassware Company has the following standards and flexible-budget data.
Standard variable-overhead rate
Standard quantity of direct labor
Budgeted fixed overhead
Budgeted output
$6 per direct-labor hour
2.0 hours per unit of output
Actual results for April are as follows:
Actual output
Actual variable overhead
Actual fixed overhead
Actual direct labor
$ 110,000
27,500 units
22,000 units
$352,000
$ 106,700
55,000 hours
![Required:
Use the variance formulas to compute the following variances.
Note: Indicate the effect of the first three variance by selecting "Favorable" or
no effect (i.e., zero variance). Select "Positive" or "Negative" for the Fixed-ove
1. Variable-overhead spending variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd08147b4-062e-42d4-b5f0-c0c53f447d52%2F8b008409-b506-409b-840b-50f7f0a445a0%2Frqb9e0k_processed.png&w=3840&q=75)
Transcribed Image Text:Required:
Use the variance formulas to compute the following variances.
Note: Indicate the effect of the first three variance by selecting "Favorable" or
no effect (i.e., zero variance). Select "Positive" or "Negative" for the Fixed-ove
1. Variable-overhead spending variance
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