Maggie Sound manufactures headphone cases. During July 2021, the company produced 108,000 cases and recorded the following cost data: Standard Cost Information Quantity Cost Direct Materials 3 parts $0.17 per part Direct Labor 0.03 hours $8.00 per hour Variable Manufacturing Overhead 0.03 hours $9.05 per hour Fixed Manufacturing Overhead 2,020 hours $17.20 per hour   Actual Cost Information Quantity Cost Direct Materials 202,000 parts $0.24 per part Direct Labor 1,610 hours $8.30 per hour Variable Manufacturing Overhead   $8,500 total cost Fixed Manufacturing Overhead   $27,600 total cost   (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Calculate the variable overhead cost and efficiency variances.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Maggie Sound manufactures headphone cases. During July 2021, the company produced 108,000 cases and recorded the following cost data:

Standard Cost Information Quantity Cost
Direct Materials 3 parts $0.17 per part
Direct Labor 0.03 hours $8.00 per hour
Variable Manufacturing Overhead 0.03 hours $9.05 per hour
Fixed Manufacturing Overhead 2,020 hours $17.20 per hour

 

Actual Cost Information Quantity Cost
Direct Materials 202,000 parts $0.24 per part
Direct Labor 1,610 hours $8.30 per hour
Variable Manufacturing Overhead   $8,500 total cost
Fixed Manufacturing Overhead   $27,600 total cost

 

(Round your answers to two decimal places when needed and use rounded answers for all future calculations).

1. Calculate the variable overhead cost and efficiency variances.      

(AC
(AQ
?
Act. FOH
?
SC)
SQ)
?
?
2. Calculate the fixed overhead cost variance.
AQ
=
SC
Variable OH Cost
Variance
Variable Overhead
Efficiency Variance
Favorable or
Unfavorable
Favorable or
Unfavorable
? Budget FOH = Fixed OH Cost Variance Favorable or Unfavorable
Transcribed Image Text:(AC (AQ ? Act. FOH ? SC) SQ) ? ? 2. Calculate the fixed overhead cost variance. AQ = SC Variable OH Cost Variance Variable Overhead Efficiency Variance Favorable or Unfavorable Favorable or Unfavorable ? Budget FOH = Fixed OH Cost Variance Favorable or Unfavorable
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