Homework Help is Here – Start Your Trial Now!
Business
Accounting
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.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
icon
Concept explainers
Topic Video
Question

Please help me 

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.)
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.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS