Judd Company uses standard costs for its manufacturing division. Standards specify 0.1 direct labor hours per unit of product. The allocation base for variable overhead costs is direct labor hours. At the beginning of the year, the static budget for variable overhead costs included the following data: Production volume Budgeted variable overhead costs Budgeted direct labor hours. At the end of the year, actual data were as follows: Production volume Actual variable overhead costs Actual direct labor hours 6,100 units $15,000 630 hours OA. $15,000 U B. $4,152 F C. $3,295 U D. $15,200 F 4,100 units $15,200 500 hours What is the variable overhead cost variance? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) *****
Judd Company uses standard costs for its manufacturing division. Standards specify 0.1 direct labor hours per unit of product. The allocation base for variable overhead costs is direct labor hours. At the beginning of the year, the static budget for variable overhead costs included the following data: Production volume Budgeted variable overhead costs Budgeted direct labor hours. At the end of the year, actual data were as follows: Production volume Actual variable overhead costs Actual direct labor hours 6,100 units $15,000 630 hours OA. $15,000 U B. $4,152 F C. $3,295 U D. $15,200 F 4,100 units $15,200 500 hours What is the variable overhead cost variance? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) *****
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
Please do not give solution in image format thanku
Transcribed Image Text:Judd Company uses standard costs for its manufacturing division. Standards specify 0.1 direct labor hours per
unit of product. The allocation base for variable overhead costs is direct labor hours. At the beginning of the
year, the static budget for variable overhead costs included the following data:
Production volume
Budgeted variable overhead costs
Budgeted direct labor hours.
At the end of the year, actual data were as follows:
Production volume
Actual variable overhead costs
Actual direct labor hours
6,100 units
$15,000
630 hours
OA. $15,000 U
B. $4,152 F
C. $3,295 U
D. $15,200 F
4,100 units
$15,200
500 hours
What is the variable overhead cost variance? (Round any intermediate calculations to the nearest cent, and your
final answer to the nearest dollar.)
*****
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education