Question No. 3Part A4000units per year, included 64,400The Lopez company uses standard costing for a level output ofmachine hours of variable manufacturing overheads of $8.00 per hour and six machine hours offixed manufacturing overheads at $15 per hour. Actual outputs produced were 44,000 units.Variable manufacture overhead incurred was $245,000. Fixed manufacture overhead incurred was$373,000. Actual machine hours were 28,400.CLO 5Required:1. Prepare an analysis of VOH and FOH variances using relevant variance equations.

A variance is the discrepancy between a planned, budgeted, or standard cost and the actual sum…

Answered: Part A 4000 -4,400 The Lopez company…

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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Assume the following information appears in the standard cost card for a business that makes only one product: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 5 pounds $ 11.00 per pound $ 55.00 Direct labor 2 hours $ 17.00 per hour $ 34.00 Variable manufacturing overhead 2 hours $ 3.00 per hour $ 6.00 During the most recent period, the following additional information was available: 20,000 pounds of material was purchased at a cost of $10.50 per pound. All of the material that was purchased was used to produce 3,900 units. 8,000 direct labor-hours were recorded at a total cost of $132,000. The actual variable overhead cost incurred during the period was $25,000. Assuming a business uses direct labor-hours to compute its predetermined overhead rate, what is the variable overhead spending variance? Multiple Choice $1,600 F $1,600 U $1,000 U $1,000 F
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Provide table
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