Mini-Exercise 15-6 (Algo) Fixed overhead variances LO 15-4, 15-5, 15-6 Acme Company's production budget for August is 18,600 units and includes the following component unit costs: direct materials, $8.0; direct labor, $11.5; variable overhead, $5.00. Budgeted fixed overhead is $43,000. Actual production in August was 19,998 units. Actual unit component costs incurred during August include direct materials, $10.00; direct labor, $10.50; variable overhead, $6.00. Actual fixed overhead was $45,600. The standard fixed overhead application rate per unit consists of $2.5 per machine hour and each unit is allowed a standard of 1 hour of machine time. Required: Calculate the fixed overhead budget variance and the fixed overhead volume variance. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Fixed overhead budget variance Fixed overhead volume variance

Mini-Exercise 15-6 (Algo) Fixed overhead variances LO 15-4, 15-5, 15-6 Acme Company's production budget for August is 18,600 units and includes the following component unit costs: direct materials, $8.0; direct labor, $11.5; variable overhead, $5.00. Budgeted fixed overhead is $43,000. Actual production in August was 19,998 units. Actual unit component costs incurred during August include direct materials, $10.00; direct labor, $10.50; variable overhead, $6.00. Actual fixed overhead was $45,600. The standard fixed overhead application rate per unit consists of $2.5 per machine hour and each unit is allowed a standard of 1 hour of machine time. Required: Calculate the fixed overhead budget variance and the fixed overhead volume variance. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Fixed overhead budget variance Fixed overhead volume variance

Name: units. Actual unit component costs incurred during August include dir
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Description: units. Actual unit component costs incurred during August include directmaterials, $10.00; direct labor, $10.50; variable overhead, $6.00. Actualfixed overhead was $45, 600. The standard fixed overhead applicationrate per unit consists of $2.5 per m

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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How to calculate direct labor time variance
Exercise 16-48 (Algo) Fixed Cost Variances (LO 16-6) Coe Parts applies fixed overhead at the rate of $6.98 per unit. Budgeted fixed overhead was $209,800. This month 29,200 units were produced, and actual fixed overhead was $204,610. Required: a. What are the fixed overhead price and production volume variances for Coe Parts? b. What was budgeted production for the month? Complete this question by entering your answers in the tabs below. Required A Required B What are the fixed overhead price and production volume variances for Coe Parts? Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Do not round your intermediate calculations. Round your final answers to the nearest dollar. Fixed overhead price variance Fixed overhead production volume variance Next > Check my
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 126,000 units requiring 504,000 direct labor hours. (Practical capacity is 524,000 hours.) Annual budgeted overhead costs total $846,720, of which $599,760 is fixed overhead. A total of 119,400 units using 502,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $260,500, and actual fixed overhead costs were $556,050. Required: 1. Compute the fixed overhead spending and volume variances. Fixed Overhead Spending Variance Fixed Overhead Volume Variance. 2. Compute the variable overhead spending and efficiency variances. Do not round intermediate calculations Variable Overhead Spending Variance. Variable Overhead Efficiency Variance
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Exercise 16-30 (Algo) Sales Activity Variance (LO 16-3) The following data are available for the most recent year of operations for Slacker & Sons. The revenue portion of the sales activity variance is $165,000 F. Master budget based on actual sales of 158,000 units: Revenue $ 3,300,000 Materials 858,000 Labor 633,000 Variable manufacturing overhead and administrative costs 133,000 Fixed manufacturing overhead and administrative costs 380,000 Required: a. How many units were actually sold in the most recent period? b. Prepare a sales activity variance for the most recent year for Slacker & Sons.
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Overhead Variances, Two- And Three-Variance Analyses Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 121,500 units requiring 486,000 direct labor hours. (Practical capacity is 506,000 hours.) Annual budgeted overhead costs total $748,440, of which $544,320 is fixed overhead. A total of 119,200 units using 484,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $240,100, and actual fixed overhead costs were $555,300. Required: 1. Compute overhead variances using a two-variance analysis. Budget Variance $ Unfavorable Volume Variance $ Unfavorable 2. Compute overhead variances using a three-variance analysis. Spending Variance $ Unfavorable Efficiency Variance $ Unfavorable Volume Variance $ Unfavorable
Direct materials Direct labor Variable overhead 6.5 ounces 0.2 hours 0.2 hours The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost ➡ 2,700 2,800 19,380 21,400 x 500 $ 40,660 $ 12,050 $3,100 The variable overhead Efficiency variance for June is: $360 F $360 U $372 U $372 F $ 2.00 per ounce $23.00 per hour $6.00 per hour The company applies variable overhead on the basis of direct labor-hours. units units ounces ounces hours $ 13.00 $4.60 $1.20
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Problem 16-75 (Algo) Comprehensive Variance Problem (LO 16-5, 6) Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September: Standards Direct naterials Direct labor Variable overhead (per direct labor-hour), Fixed overhead (per month) Expected activity (direct labor-hours)) Actual results Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual) Direct materials Direct labor Variable overhead Fleed overhead Price Variance K4 0.75 pounds at $7.00 per pound 1.25 hours at $25.00 per hour $.20.20 $ 415,200 17,300 Efficiency Variance 9,880 pounds at $6.40 per pound 14,750 hours at $25.30 per hour $ 311,060 $ 381,740 Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product Note: For all requirements, Do not round intermediate calculations. Indicate the…