Landreth Fencing considers 3,000 direct labor hours or 50 fences to be its normal monthly capacity. Its standard variable overhead rate is $12 per direct labor hour. During the current month, $29,800 of variable overhead costs were incurred in working 2,950 direct labor hours to complete 45 fences. What is the total variable overhead flexible budget variance? Select one: a. $2,600 F b. $6,800 F c. $5,000 U d. $8,600 U e. None of the above

Landreth Fencing considers 3,000 direct labor hours or 50 fences to be its normal monthly capacity. Its standard variable overhead rate is $12 per direct labor hour. During the current month, $29,800 of variable overhead costs were incurred in working 2,950 direct labor hours to complete 45 fences. What is the total variable overhead flexible budget variance? Select one: a. $2,600 F b. $6,800 F c. $5,000 U d. $8,600 U e. None of the above

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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Current Attempt in Progress Monty Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.50 Indirect materials 1.10 Utilities 0.80 Budgeted fixed overhead costs per month are Supervision $3,920, Depreciation $1,176, and Property Taxes $784. The company believes it will normally operate in a range of 6,860-9,800 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2022 for the expected range of activity, using increments of 980 direct labor hours. (List variable costs before fixed costs.) MONTY COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2022
The following static budget is provided: Per unit $70 Total $1,050,000 Sales Less variable costs: Manufacturing costs 30 450,000 Selling and administrative 20 300,000 costs $20 $300,000 Contribution margin Less fixed costs: 76,000 Manufacturing costs Selling and administrative 136,000 costs Total fixed costs 212,000 $ 88,000 Net income What will be the overall volume variance if 18,000 units are produced and sold? Multiple Choice $148,000 F $0 F $360,000 U $60,000 F
TB MC Qu. 16-40 (Algo) James Manufacturing has the following... James Manufacturing has the following information available for July: Actual Results Flexible Budget Variance Flexible Budget Sales Activity Variance Master Budget Units 11,500 ? 4,000 U ? Sales revenue ? $ 14,000 F ? ? ? Less: Variable manufacturing costs $ 88,750 $ 93,000 ? $ 113,000 Variable marketing and administrative ? $ 6,250 U ? $ 7,000 F $ 34,000 Contribution margin $ 53,000 ? ? $ 6,400 U ? What was James’s actual sales revenue for July? Multiple Choice $207,000 $175,000 $217,000 $161,000
The following information is available for Baxter Manufacturing for April: Actual machine hours 840 Standard machine hours allowed 900 Denominator activity (machine hours) 1,000 Actual fixed overhead costs $ 3,800 Budgeted fixed overhead costs $ 4,000 Predetermined overhead rate ($1 variable + $4 fixed) $ 5 What is the production volume variance? Multiple Choice $300. $400. $240. $200.
Calculate what Jordan Manufacturing Co.'s Flexible Budget would be at an estimate of 9,000 units, given the following: The Static Budget at 8,000 units of production includes $40,000.00 for Direct Labor and $4,000.00 for Electric Power. Also, total Fixed Costs are $23,000.00 Variable costs of $49,500.00 & Fixed costs of $25,875.00 O Variable and Fixed costs totaling $75,375.00 Variable costs of $49,500.00 & Fixed costs $23,000.00 Variable costs of $44,000.00 & Fixed costs of $23,000.00
Information pertaining to the Excessive Bakery is shown below: Budgeted production 500,000 cakes Actual production 498,000 cakes Estimated FOH costs $200,000 Actual FOH costs $203,000 What is the fixed overhead spending variance for the period?
Jase Manufacturing Co.'s static budget at 7,700 units of production includes $30,800 for direct labor and $3,080 for electric power. Total fixed costs are $41,500. At 10,700 units of production, a flexible budget would show a.variable costs of $47,080 and $41,500 of fixed costs b.variable costs of $33,880 and $41,500 c.variable and fixed costs totaling $75,380 d.variable costs of $47,080 and $57,669 of fixed costs
Miller and Sons' static budget for 10,500 units of production includes $43,700 for direct materials, $53,400 for direct labor, variable utilities of $8,000, and supervisor salaries of $15,700. A flexible budget for 12,900 units of production would show Round your final answer to the nearest dollar. Do not round interim calculations. Oa. total variable costs of $120,800 Ob. the same cost structure in total Oc. direct materials of $53,689, direct labor of S65,606, utilities of $9,829, and supervisor salaries of $18,840 Od. direct materials of $53,689, direct labor of $65,606, utilities of $9,829, and supervisor salaries of $15,700
Strategic Cost
A firm uses machine hours to allocate fixed overhead. During the period, budgeted fixed overhead is Rs. 30000. The budgeted machine hours is 100 hours for budgeted volume of 1000 units. The firm produced 1200 units consuming 150 hours and spent Rs. 28000 towards fixed overhead. The fixed overhead spending variance is Rs. 17000 favorable Rs. 17000 adverse Rs. 2000 favorable Rs. 8000 favorable
Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Production (in units) Overhead Variable overhead Fixed overhead Total overhead Flexible Budget at 80% Capacity 50,250 Required 1 Required 2 $ 276,375 50, 250 $ 326,625 Exercise 21-18 (Algo) Volume and controllable variances LO P4 Actual Results 44,400 (1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. Budgeted (flexible) overhead Standard overhead applied Volume variance $ 308,300 Complete this question by entering your answers in the tabs below. Volume Variance Compute the overhead volume variance.…