Oriole Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The following data are taken from the budget prepared at the beginning of the year by Oriole's controller. The company applies overhead on the basis of machine hours. Variable manufacturing overhead Fixed manufacturing overhead Direct labor hours Machine hours Annual Budget $2,684,400 $1,205,880 48,000 223,700 During the month of May, Oriole used 4,480 direct labor hours and 21,710 machine hours. The flexible budget for the month allowed 4,310 direct labor hours and 21,120 machine hours. Actual fixed manufacturing overhead incurred was $106,700; variable manufacturing overhead incurred was $259,520. (a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 5,725. If variance is zero, select "Not Applicable" and enter o for the amounts.) (a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 5,725. If variance is zero, select "Not Applicable" and enter O for the amounts.) Variable overhead spending variance Variable overhead efficiency variance May Budget $247,200 $100,490 4,000 20,600 Fixed overhead spending variance $ $ (b) Calculate the fixed overhead spending variance for May. (If variance is zero, select "Not Applicable" and enter O for the amounts.)
Oriole Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The following data are taken from the budget prepared at the beginning of the year by Oriole's controller. The company applies overhead on the basis of machine hours. Variable manufacturing overhead Fixed manufacturing overhead Direct labor hours Machine hours Annual Budget $2,684,400 $1,205,880 48,000 223,700 During the month of May, Oriole used 4,480 direct labor hours and 21,710 machine hours. The flexible budget for the month allowed 4,310 direct labor hours and 21,120 machine hours. Actual fixed manufacturing overhead incurred was $106,700; variable manufacturing overhead incurred was $259,520. (a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 5,725. If variance is zero, select "Not Applicable" and enter o for the amounts.) (a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 5,725. If variance is zero, select "Not Applicable" and enter O for the amounts.) Variable overhead spending variance Variable overhead efficiency variance May Budget $247,200 $100,490 4,000 20,600 Fixed overhead spending variance $ $ (b) Calculate the fixed overhead spending variance for May. (If variance is zero, select "Not Applicable" and enter O for the amounts.)
Chapter1: Financial Statements And Business Decisions
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
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Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
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Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:Oriole Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The following
data are taken from the budget prepared at the beginning of the year by Oriole's controller. The company applies overhead on the
basis of machine hours.
Variable manufacturing overhead
Fixed manufacturing overhead
Direct labor hours
Machine hours
Annual Budget May Budget
$2,684,400
$247,200
$1,205,880
$100,490
48,000
During the month of May, Oriole used 4,480 direct labor hours and 21,710 machine hours. The flexible budget for the month allowed
4,310 direct labor hours and 21,120 machine hours. Actual fixed manufacturing overhead incurred was $106,700; variable
manufacturing overhead incurred was $259,520.
Variable overhead spending variance
223,700
(a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and
final answers to O decimal places, e.g. 5,725. If variance is zero, select "Not Applicable" and enter O for the amounts.)
Variable overhead efficiency variance
(a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and
final answers to O decimal places, e.g. 5,725. If variance is zero, select "Not Applicable" and enter O for the amounts.)
Fixed overhead spending variance
4,000
20,600
$
(b) Calculate the fixed overhead spending variance for May. (If variance is zero, select "Not Applicable" and enter O for the amounts.)
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