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Exercise 11-22 Straightforward Computation of Overhead Variances (LO 11-5) 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 Actual results for April are as follows: Actual output Actual variable overhead Actual fixed overhead Actual direct labor $252,000 $111,000 $ 6.00 per direct-labor hour 2 hours per unit of output 1. Variable-overhead spending variance 2. Variable-overhead efficiency variance 3. Fixed-overhead budget variance Fixed-overhead volume variance 4 $120,000 20,000 units 14,000 units 40,000 hours Required: Use the variance formulas to compute the following variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

Exercise 11-22 Straightforward Computation of Overhead Variances (LO 11-5) 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 Actual results for April are as follows: Actual output Actual variable overhead Actual fixed overhead Actual direct labor $252,000 $111,000 $ 6.00 per direct-labor hour 2 hours per unit of output 1. Variable-overhead spending variance 2. Variable-overhead efficiency variance 3. Fixed-overhead budget variance Fixed-overhead volume variance 4 $120,000 20,000 units 14,000 units 40,000 hours Required: Use the variance formulas to compute the following variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Exercise 11-22 Straightforward Computation of Overhead Variances (LO 11-5) 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 Actual results for April are as follows: Actual output Actual variable overhead Actual fixed overhead Actual direct labor $252,000 $111,000 $ 6.00 per direct-labor hour 2 hours per unit of output 1. Variable-overhead spending variance 2. Variable-overhead efficiency variance Fixed-overhead budget variance 3. 4. Fixed-overhead volume variance $120,000 20,000 units 14,000 units 40,000 hours Required: Use the variance formulas to compute the following variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).)
Transcribed Image Text:Exercise 11-22 Straightforward Computation of Overhead Variances (LO 11-5) 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 Actual results for April are as follows: Actual output Actual variable overhead Actual fixed overhead Actual direct labor $252,000 $111,000 $ 6.00 per direct-labor hour 2 hours per unit of output 1. Variable-overhead spending variance 2. Variable-overhead efficiency variance Fixed-overhead budget variance 3. 4. Fixed-overhead volume variance $120,000 20,000 units 14,000 units 40,000 hours Required: Use the variance formulas to compute the following variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).)
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