Current Attempt in Progress Sunland Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The following data are taken from the budget prepared at the beginning of the year by Sunland's controller. The company applies overhead on the basis of machine hours. Variable manufacturing overhead Fixed manufacturing overhead Direct labor hours Machine hours Variable overhead spending variance Annual Budget Variable overhead efficiency variance $1,713,600 $1,202,640 Fixed overhead spending variance During the month of May, Sunland used 4,380 direct labor hours and 21,920 machine hours. The flexible budget for the month allowed 4,190 direct labor hours and 21,050 machine hours. Actual fixed manufacturing overhead incurred was $109,800; variable manufacturing overhead incurred was $152,440. $ 50,760 (a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,725. If variance is zero, select "Not Applicable" and enter O for the amounts.) $ 244,800 $ May Budget $140,000 $100,220 4,230 20,000 (b) Calculate the fixed overhead spending variance for May. (If variance is zero, select "Not Applicable" and enter O for the amounts.)
Current Attempt in Progress Sunland Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The following data are taken from the budget prepared at the beginning of the year by Sunland's controller. The company applies overhead on the basis of machine hours. Variable manufacturing overhead Fixed manufacturing overhead Direct labor hours Machine hours Variable overhead spending variance Annual Budget Variable overhead efficiency variance $1,713,600 $1,202,640 Fixed overhead spending variance During the month of May, Sunland used 4,380 direct labor hours and 21,920 machine hours. The flexible budget for the month allowed 4,190 direct labor hours and 21,050 machine hours. Actual fixed manufacturing overhead incurred was $109,800; variable manufacturing overhead incurred was $152,440. $ 50,760 (a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,725. If variance is zero, select "Not Applicable" and enter O for the amounts.) $ 244,800 $ May Budget $140,000 $100,220 4,230 20,000 (b) Calculate the fixed overhead spending variance for May. (If variance is zero, select "Not Applicable" and enter O for the amounts.)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 4CMA: Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold...
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
1
Transcribed Image Text:Current Attempt in Progress
Sunland Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The
following data are taken from the budget prepared at the beginning of the year by Sunland's controller. The company applies overhead
on the basis of machine hours.
Variable manufacturing overhead
Fixed manufacturing overhead
Direct labor hours.
Machine hours
Variable overhead spending variance
Annual Budget
$1,713,600
$1,202,640
Variable overhead efficiency variance
Fixed overhead spending variance
During the month of May, Sunland used 4,380 direct labor hours and 21,920 machine hours. The flexible budget for the month allowed
4,190 direct labor hours and 21,050 machine hours. Actual fixed manufacturing overhead incurred was $109,800; variable
manufacturing overhead incurred was $152,440.
50,760
(a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and
final answers to O decimal places, e.g. 5,725. If variance is zero, select "Not Applicable" and enter O for the amounts.)
$
$
244,800
$
May Budget
$140,000
$100,220
4,230
20,000
(b) Calculate the fixed overhead spending variance for May. (If variance is zero, select "Not Applicable" and enter O for the amounts.)
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!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
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.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning