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Camelback Industries operates a delivery service for local restaurants, delivering call-in, to-go meals for restaurant customers. Variable overhead costs are applied at the budgeted rate of $12 per driving hour. The typical round trip takes a driver 30 minutes to complete. Actual results for March follow. Number of round trips run: 1,530 Hours of delivery time: 1,190 Variable overhead cost incurred: $3,600 Camelback uses flexible budgets and variance analysis to monitor performance. Required: A. Prepare a flexible-budget performance report that shows (1) actual variable overhead, (2) the amount of variable overhead that should have been incurred for the number of round trips taken, and (3) the variance between these amounts. B. Compute the company's variable-overhead spending and efficiency variances, (Indicate the effect of each variance by selecting

Camelback Industries operates a delivery service for local restaurants, delivering call-in, to-go meals for restaurant customers. Variable overhead costs are applied at the budgeted rate of $12 per driving hour. The typical round trip takes a driver 30 minutes to complete. Actual results for March follow. Number of round trips run: 1,530 Hours of delivery time: 1,190 Variable overhead cost incurred: $3,600 Camelback uses flexible budgets and variance analysis to monitor performance. Required: A. Prepare a flexible-budget performance report that shows (1) actual variable overhead, (2) the amount of variable overhead that should have been incurred for the number of round trips taken, and (3) the variance between these amounts. B. Compute the company's variable-overhead spending and efficiency variances, (Indicate the effect of each variance by selecting

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Could you please help me with the correct calculations and answers for the screenshot attached.

 

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Camelback Industries operates a delivery service for local restaurants, delivering call-in, to-go meals for restaurant customers. Variable overhead costs are applied at the budgeted rate of $12 per driving hour. The typical round trip takes a driver 30 minutes to complete. Actual results for March follow. Number of round trips run: 1,530 Hours of delivery time: 1,190 Variable overhead cost incurred: $3,600 Camelback uses flexible budgets and variance analysis to monitor performance. Required: A. Prepare a flexible-budget performance report that shows (1) actual variable overhead, (2) the amount of variable overhead that should have been incurred for the number of round trips taken, and (3) the variance between these amounts. B. Compute the company's variable-overhead spending and efficiency variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).) A. Budgeted variable overhead Variance $ B. Spending variance Efficiency variance
Transcribed Image Text:Camelback Industries operates a delivery service for local restaurants, delivering call-in, to-go meals for restaurant customers. Variable overhead costs are applied at the budgeted rate of $12 per driving hour. The typical round trip takes a driver 30 minutes to complete. Actual results for March follow. Number of round trips run: 1,530 Hours of delivery time: 1,190 Variable overhead cost incurred: $3,600 Camelback uses flexible budgets and variance analysis to monitor performance. Required: A. Prepare a flexible-budget performance report that shows (1) actual variable overhead, (2) the amount of variable overhead that should have been incurred for the number of round trips taken, and (3) the variance between these amounts. B. Compute the company's variable-overhead spending and efficiency variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).) A. Budgeted variable overhead Variance $ B. Spending variance Efficiency variance
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