Edward was working away at his first attempt at variance analysis for his manufacturing company. He filled in variable-and fixed-MOHcosts where he saw fit, before actually calculating the related price, efficiency, and volume variances. Since he was focusing on theoverhead costs specifically, he made note of the allocation base being used, machine hours. Here is his work so far:Variable-MOHFixed-MOHActual Variable-MOH CostVariable-MOHFlexible BudgetApplied Variable-MOH Cost$16,850$15,550$15,550Fixed-MOHMaster BudgetApplied Fixed-MOH CostActual Fixed-MOH Cost$26,950$26,600$24,250Edward isn't sure if he put the right costs in the right places. There were also a couple of costs that he didn't include, because he wasn'tsure if they belonged, as follows.Actual machine hours @budgeted variable-MOH rate: $16,000Flexible budget fixed-MOH cost: $26,950(b)Your answer is partially correct.Using your corrected framework from part (a), determine the variable-MOH price and efficiency variances. Was variable-MOHunder-or overapplied this year? By how much?Variable-MOH price variance$850UnfavorableVariable-MOH efficiency variance $1350UnfavorableVariable-MOH500Under-applied

Explanation: Variable MOH price variance will be calculated as = Actual Variable MOH Cost - Actual…

Answered: Edward was working away at his first…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 18Q

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Please assist with requirements 1 and 2, providing explanations for each calculation in detail. Thanks! Requirements 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. 2. Explain why the variances are favorable or unfavorable.
Best, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) variable overhead, $3,800; actual fixed overhead, $3, 500; actual direct labor hours, 1,400. Read the requirements. Data table Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standardco \table [[,, Formula,Variance], [VOH cost variance, = , 1 = , ], [VOH efficiency variance, =,1 =, 0
please answer all or skip please answer all or leave .If you can't answer all leave it please answer all with all working 1 b. Prepare journal entries to record all activity relating to direct materials for the period. 2. For direct labour. a. Compute the rate and efficiency variances. (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 2b . Prepare a journal entry to record the incurrence of direct labour cost for the period. (List debit entries first). Record the incurrence of direct labour cost for the period. Note: Enter debits hefore credits 3. Compute the variable manufacturing overhead spending and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 4. Compute the fixed overhead budget and volume variances. (indicate the effect of variance by selecting "F" for…
Bill Wilson, the financial accountant at Robson Ltd is considering implementing a standard costing system. He has asked your advice on the following: a) Setting standards b) Investigating variances c) Taking corrective action on large variances Required: Prepare a short report for Bill addressing these three areas.
Acme Inc. has the following information available: A. Compute the material price and quantity, and the labor rate and efficiency variances. B. Describe the possible causes for this combination of favorable and unfavorable variances.
The president of McGrade Industries wants an analysis prepared to help explain why the variances computed in requirement 1 occurred. Using the worksheet called PRIMEVAR that follows these requirements, calculate the material and labor variances for McGrade Industries. The problem requires you to enter the input in the Data Section as well as formulas in the Answer Section.
The worksheet you have developed will handle most simple variance analysis problems. Try the problem below for Pscheidl, Inc.: Actual production for October was 11,500 units. Compute the direct materials and direct labor variances for Pscheidl, Inc. Be careful when entering your input because this problem presents the information in a different format from the McGrade Industries data. Save the file as PRIMEVAR4. Print the worksheet when done.
Matching terms Match each term to the correct definition.
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
1) In a company's standard costing system direct labor-hours are used as the base for applying variable manufacturing overhead costs. The standard direct labor rate is twice the variable overhead rate. Last period the labor efficiency variance was unfavorable. From this information one can conclude that last period the variable overhead efficiency variance was: A) favorable and twice the labor efficiency variance. B) unfavorable and twice the labor efficiency variance. C) favorable and half the labor efficiency variance. D) unfavorable and half the labor efficiency variance. 1)
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