Flexible Budgets, Overhead Cost Variances, and Management Control Variable Manufacturing Overhead Variance Analysis The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. Variable manufacturing overhead is allocated to products on the basis of standard direct manufacturing labor-hours. Following is some budget data for the Sourdough Bread Company: Direct manufacturing labor use 0.02 hours per baguette Variable manufacturing overhead $10.00 per direct manufacturing labor-hour The Sourdough Bread Company provides the following additional data for the year ended December 31, 2017: Planned (budgeted) output 3,100,000 baguettes Actual production 2,600,000 baguettes Direct manufacturing labor 46,800 hours Actual variable manufacturing overhead $617,760 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong. Requirements 1 What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is Sourdough Bread budgeting?) 2 Prepare a variance analysis of variable manufacturing overhead. a. Use the ABS function when calculating variances, and use the drop-down selections for F (favorable) or U (unfavorable) when describing the variances.

Name: Flexible Budgets, Overhead Cost Variances, and Management Control Vari
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Flexible Budgets, Overhead Cost Variances, and Management Control Variable Manufacturing Overhead Variance Analysis The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categor

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

Flexible Budgets, Overhead Cost Variances, and Management Control
Variable Manufacturing Overhead Variance Analysis

The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. Variable manufacturing overhead is allocated to products on the basis of standard direct manufacturing labor-hours. Following is some budget data for the Sourdough Bread Company:

		Direct manufacturing labor use	0.02	hours per baguette
		Variable manufacturing overhead	$10.00	per direct manufacturing labor-hour

The Sourdough Bread Company provides the following additional data for the year ended December 31, 2017:

		Planned (budgeted) output	3,100,000	baguettes
		Actual production	2,600,000	baguettes
		Direct manufacturing labor	46,800	hours
		Actual variable manufacturing overhead	$617,760

Use the blue shaded areas on the ENTERANSWERS tab for inputs.
Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong.

Requirements
1	What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is Sourdough Bread budgeting?)
2	Prepare a variance analysis of variable manufacturing overhead.
	a.	Use the ABS function when calculating variances, and use the drop-down selections for F (favorable) or U (unfavorable) when describing the variances.

1. What is the denominator level used for allocating variable manufacturing overhead?
(That is, for how many direct manufacturing labor-hours is Sourdough Bread budgeting?)
(Always use cell references and formulas where appropriate to receive full credit. If you
copy/paste from the Instructions tab you will be marked wrong.)
Ihours
2. Prepare a variance analysis of variable manufacturing overhead.
(Always use cell references and formulas where appropriate to receive full credit. If you
copy/paste from the Instructions tab you will be marked wrong. Use cell references from prior
calculations, if applicable.)
Flexible Budget:
Allocated: Budgeted
Budgeted Input
Actual Input Quantity Allowed for Allowed for Actual
Actual Output x
Input Quantity
Actual Costs Incurred:
Actual Input Quantity x
Quantity x
Output x Budgeted
Actual Rate
Budgeted Rate
Budgeted Rate
Rate
Spending variance
Efficiency variance
Flexible-budget variance
INSTRUCTIONS
ENTERANSWERS

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions