Perez Company established a predetermined fixed overhead cost rate of $37 per unit of product. The company planned to make 6,100units of product but actually produced only 5,300 units. Actual fixed overhead costs were $233,200.Requireda. Determine the fixed cost spending variance and indicate whether it is favorable (F) or unfavorable (U).b. Determine the fixed cost volume variance and indicate whether it is favorable (F) or unfavorable (U).Note: For all requirements, Select "None" if there is no effect (i.e., zero variance).a. Total spending varianceb. Total volume variance

Given,Predetermined fixed overhead cost rate = $ 37 per unitPlanned units = 6,100 unitsActual fixed…

Answered: Perez Company established a…

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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Resset Co. provides the following results of April’s operations: F indicates favorable and U indicates unfavorable. In applying management by exception, the company investigates all variances of $400 or more. Which variances will the company investigate? Direct materials price variance . $ 300 F Direct labor efficiency variance . $2,200 F Direct materials quantity variance . 3,000 U Controllable overhead variance . 400 U Direct labor rate variance . 100 U Fixed overhead volume variance . 500 F
Trull Company uses a standard cost system. Variable overhead costs are allocated based on direct labor hours. In the first quarter, Trull had a favorable cost variance for variable overhead costs. Which of the following scenarios is a reasonable explanation for this variance? A. The actual number of direct labor hours was lower than the budgeted hours. B. The actual variable overhead costs were higher than the budgeted costs. OC. The actual variable overhead costs were lower than the budgeted costs. OD. The actual number of direct labor hours was higher than the budgeted hours.
Franklin Company established a predetermined fixed overhead cost rate of $36 per unit of product. The company planned to make 7,700 units of product but actually produced only 7,400 units. Actual fixed overhead costs were $286,100. Required a. Determine the fixed cost spending variance and indicate whether it is favorable (F) or unfavorable (U).
Rexford Components shows the following overhead information for the current period: Actual overhead incurred $ 105,840 , 2/3 of which is variable Budgeted fixed overhead $ 31,104 Standard variable overhead rate per direct labor-hour $ 27 Standard hours allowed for actual production 2,820 hours Actual labor-hours used 2,640 hours Required: What are the variable overhead price and efficiency variances and fixed overhead price variance? (Do not round intermediate calculations. 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.)
Beverly Company has determined a standard variable overhead rate of $3.40 per direct labor hour and expects to incur 0.50 labor hour per unit produced. Last month, Beverly incurred 1,400 actual direct labor hours in the production of 2,900 units. The company has also determined that its actual variable overhead rate is $2.40 per direct labor hour. Calculate the variable overhead rate and efficiency variances as well as the total amount of over- or underapplied variable overhead. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). variable overhead rate variance variable overhead efficiency variance over-or underapplied variable overhead
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Beverly Company has determined a standard variable overhead rate of $4.00 per direct labor hour and expects to incur 0.50 labor hour per unit produced. Last month, Beverly incurred 1,700 actual direct labor hours in the production of 3,500 units. The company has also determined that its actual variable overhead rate is $2.40 per direct labor hour. Calculate the variable overhead rate and efficiency variances as well as the total amount of over- or underapplied variable overhead. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Variable Overhead Rate Variance $2,720 F Variable Overhead Efficiency Variance $200 F Over or under applied Variable Overhead??- how do I figure this out??
Information on Grixdale Partner's fixed overhead costs follows: Overhead applied $ 1,227,800 Actual overhead 1,153,200 Budgeted overhead 1,207,000 Required: What are the fixed overhead price and production volume variances? 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.
Best, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) variable overhead, $3,800; actual fixed overhead, $3, 500; actual direct labor hours, 1,400. Read the requirements. Data table Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standardco \table [[,, Formula,Variance], [VOH cost variance, = , 1 = , ], [VOH efficiency variance, =,1 =, 0
Stuart Company established a predetermined fixed overhead cost rate of $35 per unit of product. The company planned to make 6,500 units of product but actually produced only 6,000 units. Actual fixed overhead costs were $235,600. Required a. Determine the fixed cost spending variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the fixed cost volume variance and indicate whether it is favorable (F) or unfavorable (U). Note: For all requirements, Select "None" if there is no effect (i.e., zero variance). a. Total spending variance b. Total volume variance U U
Shaw Company produced 730 units. Its overhead alocation base is DLH and its standard amount per allocation base is 8 DLH per unit its standard overhead rate is $10 per DLH. The flexible overhead budget at an activity level of 730 units shows $28,500 in varlable overhead costs and $32.500 in fixed overhead costs. Compute the volume variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance) Volume Varianee Butpeted eble overhead atuns produced Standard overhead appled Volume variance
Please redo this problem and show me steps on how to get the following questions correct, its stating I am wrong. Please help Direct Labor Variances The following data relate to labor cost for production of 6,600 cellular telephones: Actual: 4,480 hrs. at $16.10 $72,128 Standard: 4,410 hrs. at $16.40 $72,324 a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter all values as a positive number and then identify the variance (e.g. Favorable or Unfavorable) in the adjacent column. Rate variance $ Favorable Time variance $ Unfavorable Total direct labor cost variance $ Favorable b. The employees may have been less-experienced or poorly trained, thereby resulting in a lower labor rate than planned. The lower level of experience or training may have resulted in less efficient performance. Thus, the actual time required was more than standard. LIz C

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