Data table The Velocities Corporation (June 2017) Number of centrifuges assembled and sold Hours of assembly time Variable manufacturing overhead cost per hour of assembly time Variable manufacturing overhead costs Fixed manufacturing overhead costs Requirements Print 3. Done $ $ Actual Results 235 282 $ 8,591 10,850 $ Static Budget 1. Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead variances. 100 29.00 2. Prepare journal entries for Velocities' June 2017 variable and fixed manufacturing overhead costs and variances; write off these variances to Cost of Goods Sold for the quarter ending June 30, 2017. 9,400 How does the planning and control of variable manufacturing overhead costs differ from the planning and control of fixed manufacturing overhead costs?
Data table The Velocities Corporation (June 2017) Number of centrifuges assembled and sold Hours of assembly time Variable manufacturing overhead cost per hour of assembly time Variable manufacturing overhead costs Fixed manufacturing overhead costs Requirements Print 3. Done $ $ Actual Results 235 282 $ 8,591 10,850 $ Static Budget 1. Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead variances. 100 29.00 2. Prepare journal entries for Velocities' June 2017 variable and fixed manufacturing overhead costs and variances; write off these variances to Cost of Goods Sold for the quarter ending June 30, 2017. 9,400 How does the planning and control of variable manufacturing overhead costs differ from the planning and control of fixed manufacturing overhead costs?
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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Transcribed Image Text:Data table
Number of centrifuges assembled and sold
Hours of assembly time
Variable manufacturing overhead cost per hour of assembly time
Variable manufacturing overhead costs
Fixed manufacturing overhead costs
Requirements
1.
The Velocities Corporation (June 2017)
2.
3.
Print
Done
$
Print
Actual
Results
235
282
Done
$
8,591
10,850 $
Prepare an analysis of all variable manufacturing overhead and fixed
manufacturing overhead variances.
Static
Budget
Prepare journal entries for Velocities' June 2017 variable and fixed
manufacturing overhead costs and variances; write off these variances to
Cost of Goods Sold for the quarter ending June 30, 2017.
100
29.00
9,400
How does the planning and control of variable manufacturing overhead costs
differ from the planning and control of fixed manufacturing overhead costs?
I
Transcribed Image Text:The Velocities Corporation is a manufacturer of centrifuges. Fixed and variable manufacturing overheads are allocated to each centrifuge using budgeted assembly-hours Budgeted assembl
time is 2 hours per unit. The following table shows the budgeted amounts and actual results related to overhead for June 2017.
(Click the icon to view the table.)
Read the requirements
Requirement 1. Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead variances
Begin by calculating the following amounts for the variable overhead
Actual Input
Variable OH
Actual Costs
Incurred
Budgeted Rate
COLEN
Flexible
Budget
Allocated
Overhead
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