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Matthew was working away at his first attempt at variance analysis for his manufacturing company. He filled in variable-and fixed- MOH costs where he saw fit, before actually calculating the related price, efficiency, and volume variances. Since he was focusing on the overhead costs specifically, he made note of the allocation base being used, machine hours. Here is his work so far: Variable-MOH Fixed-MOH Actual Variable- MOH Cost $16,700 Fixed-MOH Master Budget $27,250 Fixed-MOH price variance Fixed-MQH Variable-MOH Flexible Budget $15,500 $ Fixed-MOH volume variance $ Applied Fixed- MOH Cost $26,650 Matthew isn't sure if he put the right costs in the right places. There were also a couple of costs that he didn't include, because he wasn't sure if they belonged, as follows. Actual machine hours @ budgeted variable-MOH rate: $15,950 $ Applied Variable- MOH Cost Actual Fixed- MOH Cost Flexible budget fixed-MOH cost: $27,250 Using the same framework, determine the fixed-MOH price and volume variances. Was fixed-MOH under-or overapplied this year? By how much? $24,300 $15,500

Matthew was working away at his first attempt at variance analysis for his manufacturing company. He filled in variable-and fixed- MOH costs where he saw fit, before actually calculating the related price, efficiency, and volume variances. Since he was focusing on the overhead costs specifically, he made note of the allocation base being used, machine hours. Here is his work so far: Variable-MOH Fixed-MOH Actual Variable- MOH Cost $16,700 Fixed-MOH Master Budget $27,250 Fixed-MOH price variance Fixed-MQH Variable-MOH Flexible Budget $15,500 $ Fixed-MOH volume variance $ Applied Fixed- MOH Cost $26,650 Matthew isn't sure if he put the right costs in the right places. There were also a couple of costs that he didn't include, because he wasn't sure if they belonged, as follows. Actual machine hours @ budgeted variable-MOH rate: $15,950 $ Applied Variable- MOH Cost Actual Fixed- MOH Cost Flexible budget fixed-MOH cost: $27,250 Using the same framework, determine the fixed-MOH price and volume variances. Was fixed-MOH under-or overapplied this year? By how much? $24,300 $15,500

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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Matthew was working away at his first attempt at variance analysis for his manufacturing company. He filled in variable-and fixed- MOH costs where he saw fit, before actually calculating the related price, efficiency, and volume variances. Since he was focusing on the overhead costs specifically, he made note of the allocation base being used, machine hours. Here is his work so far: Variable-MOH Fixed-MOH Actual Variable- MOH Cost Fixed-MOH Master Budget $27,250 Fixed-MOH price variance Fixed-MOH $16,700 Fixed-MOH volume variance $ Variable-MOH Variable-MOH price variance Matthew isn't sure if he put the right costs in the right places. There were also a couple of costs that he didn't include, because he wasn't sure if they belonged, as follows. Actual machine hours @ budgeted variable-MOH rate: $15,950 $ Flexible budget fixed-MOH cost: $27,250 Using the same framework, determine the fixed-MOH price and volume variances. Was fixed-MOH under-or overapplied this year? By how much? eTextbook and Media Applied Fixed- MOH Cost $ Variable-MOH Flexible Budget $15,500 Variable-MOH efficiency variance $ $ $26,650 Applied Variable- MOH Cost Using your corrected framework from part (a), determine the variable-MOH price and efficiency variances. Was variable- under-or overapplied this year? By how much? $ Actual Fixed- MOH Cost $24,300 $15,500 750 450 1200 Unfavorable Unfavorable Under-applied
Transcribed Image Text:Matthew was working away at his first attempt at variance analysis for his manufacturing company. He filled in variable-and fixed- MOH costs where he saw fit, before actually calculating the related price, efficiency, and volume variances. Since he was focusing on the overhead costs specifically, he made note of the allocation base being used, machine hours. Here is his work so far: Variable-MOH Fixed-MOH Actual Variable- MOH Cost Fixed-MOH Master Budget $27,250 Fixed-MOH price variance Fixed-MOH $16,700 Fixed-MOH volume variance $ Variable-MOH Variable-MOH price variance Matthew isn't sure if he put the right costs in the right places. There were also a couple of costs that he didn't include, because he wasn't sure if they belonged, as follows. Actual machine hours @ budgeted variable-MOH rate: $15,950 $ Flexible budget fixed-MOH cost: $27,250 Using the same framework, determine the fixed-MOH price and volume variances. Was fixed-MOH under-or overapplied this year? By how much? eTextbook and Media Applied Fixed- MOH Cost $ Variable-MOH Flexible Budget $15,500 Variable-MOH efficiency variance $ $ $26,650 Applied Variable- MOH Cost Using your corrected framework from part (a), determine the variable-MOH price and efficiency variances. Was variable- under-or overapplied this year? By how much? $ Actual Fixed- MOH Cost $24,300 $15,500 750 450 1200 Unfavorable Unfavorable Under-applied
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