Ex. 6-3. Factory Overhead Variance - Fixed Budget Approach. For the month of March, Department 1 of Chiqui Company incurred total overhead costs of P525,000 in producing 2,500 units of product, for which 24,000 hours were used. For such month, the department's budgeted factory overhead cost was P600,000 based on the normal activity level of 30,000 hours or 3,000 units of product. Required: Compute and analyze the factory overhead variance using the three- variance method of analysis.

Ex. 6-3. Factory Overhead Variance - Fixed Budget Approach. For the month of March, Department 1 of Chiqui Company incurred total overhead costs of P525,000 in producing 2,500 units of product, for which 24,000 hours were used. For such month, the department's budgeted factory overhead cost was P600,000 based on the normal activity level of 30,000 hours or 3,000 units of product. Required: Compute and analyze the factory overhead variance using the three- variance method of analysis.

Name: Ex. 6-3. Factory Overhead Variance - Fixed Budget Approach.For the mo
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Ex. 6-3. Factory Overhead Variance - Fixed Budget Approach.For the month of March, Department 1 of Chiqui Company incurred totaloverhead costs of P525,000 in producing 2,500 units of product, for which24,000 hours were used.For such month, the depar

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Calculating the Fixed Overhead Spending and Volume Variances Standish Company manufactures consumer products and provided the following information for the month of February:
Marv Company's direct labor costs for manufacturing its only product were as follows for October: Standard direct labor hours per unit of product 2.0 Budgeted finished units for the period 6,800 Actual number of finished units produced 5,200 Standard wage rate per direct labor hour (SP) $ 28.00 Direct labor costs incurred $ 299,000 Actual wage rate per direct labor hour (AP) $ 26.00 The direct labor rate variance for October, rounded to the nearest dollar, was: Multiple Choice $23,000 favorable. $51,200 unfavorable. $2,200 unfavorable. $20,400 favorable. $30,800 unfavorable.
Selected data for March for Irvington, Incorporated follows. The variable material sales activity variance is $23,040 U. Flexible budget based on actual sales of 9,958 units: Revenue Materials Labor Variable overhead Fixed costs (manufacturing and administrative) Required: a. How many units were budgeted for March in the master budget? b. Recreate the master budget for March. Complete this question by entering your answers in the tabs below. Required A Required B How many units were budgeted for March in the master budget? Budgeted sales units $ 300,440 99,840 78,000 50,960 41,120
The following information relates to the Finishing department of Tom company for the fourth quarter: Total actual overhead, P178,500; Budgeted allowance formula, P110,000 plus P0.50 per direct labor hour; Predetermined factory overhead rate, P1.50 per direct labor hour; Spendi8ng variance, P8,000 unfavorable; Efficiency variance, P9,000 unfavorable. The total factory overhead is divided into three variances- spending, idle capacity and efficiency. Compute for the actual direct labor hours worked in the finishing department during the fourth quarter.
Overhead Variances, Two- And Three-Variance Analyses Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 121,500 units requiring 486,000 direct labor hours. (Practical capacity is 506,000 hours.) Annual budgeted overhead costs total $748,440, of which $544,320 is fixed overhead. A total of 119,200 units using 484,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $240,100, and actual fixed overhead costs were $555,300. Required: 1. Compute overhead variances using a two-variance analysis. Budget Variance $ Unfavorable Volume Variance $ Unfavorable 2. Compute overhead variances using a three-variance analysis. Spending Variance $ Unfavorable Efficiency Variance $ Unfavorable Volume Variance $ Unfavorable
please help me
Please help me
Yourtube Company uses a standard cost system and prepared the following budget at normal capacity for the month of January. Direct labor hours Variable factory overhead Fixed factory overhead Total factory overhead per DLH 24,000 $48,000 $108,000 $6.50 Actual data for January were as follows: 22,000 Total factory overhead $147,000 Direct labor hours worked Standard DLH allowed for the capacity attained 21,000 Using the two-way analysis of overhead variances, what is the budget (controllable) variance for January? A. $3,000. B. $13,500 unfavorable. C. $9,000 favorable. D. $10,500 unfavorable.
The Diamond Manufacturing Company uses a standard cost system for and applies overhead based on machine hours. The following information is available for June: Standard: Machine hours (MH) per unit 2 Fixed overhead rate per MH $5.00 Budgeted fixed overhead $25,000 Actual: Machine hours 4,800 Fixed overhead $26,200 Units produced 2,600 Calculate the fixed overhead budget variance and volume variance for the month of June.
Bb.60.
Vala
Overhead Variances, Two- And Three-Variance Analyses Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 122,000 units requiring 488,000 direct labor hours. (Practical capacity is 508,000 hours.) Annual budgeted overhead costs total $741,760, of which $541,680 is fixed overhead. A total of 119,100 units using 486,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $241,700, and actual fixed overhead costs were $556,050. Required: 1. Compute overhead variances using a two-variance analysis. Budget Variance Volume Variance 2. Compute overhead variances using a three-variance analysis. Spending Variance Efficiency Variance Volume Variance 00 00