The Principles Corporation is a manufacturer of centrifuges. Fixed and variable manufacturing overheads are allocated to each centrifuge using budgeted assembly-hours. Budgeted assembly time is 2 hours per unit. The following table showsthe budgeted amounts and actual results related to overhead for June 2020.E (Click the icon to view the table.)RequirementsRead the requirements.Requirement 1. Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead variances.1.Prepare an analysis of all variable manufacturing overhead and fixedmanufacturing overhead variances.Begin by calculating the following amounts for the variable overhead (OH).2. Prepare journal entries for Principles' June 2020 variable and fixedmanufacturing overhead costs and variances; write off these variances toCost of Goods Sold for the quarter ending June 30, 2020.Actual InputActual CostsFlexibleAllocated3.How does the planning and control of variable manufacturing overhead costsdiffer from the planning and control of fixed manufacturing overhead costs?IncurredBudgeted RateBudgetOverheadVariable OHPrintDoneData TableActualStaticThe Principles Corporation (June 2020)ResultsBudgetNumber of centrifuges assembled and sold124135Hours of assembly time220Variable manufacturing overhead cost per hour of assembly time$31Variable manufacturing overhead costs$7,280Fixed manufacturing overhead costs$13,250 $12,150Enter any number in the edit fields and then click Check Answer.PrintDone13 partsremainingClear AllCheck Answer

Name: The Principles Corporation is a manufacturer of centrifuges. Fixed an
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Description: The Principles Corporation is a manufacturer of centrifuges. Fixed and variable manufacturing overheads are allocated to each centrifuge using budgeted assembly-hours. Budgeted assembly time is 2 hours per unit. The following table showsthe budgeted

Variable cost includes all costs that vary directly with the volume of output. That is, variable…

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Prepare an analysis of all variable manufacturing overhead and manufacturing overhead variances. Prepare journal entries for Principles' June 2020 variable and fix

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

Topic Video

Question

The Principles Corporation is a manufacturer of centrifuges. Fixed and variable manufacturing overheads are allocated to each centrifuge using budgeted assembly-hours. Budgeted assembly time is 2 hours per unit. The following table shows
the budgeted amounts and actual results related to overhead for June 2020.
E (Click the icon to view the table.)
Requirements
Read the requirements.
Requirement 1. Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead variances.
1.
Prepare an analysis of all variable manufacturing overhead and fixed
manufacturing overhead variances.
Begin by calculating the following amounts for the variable overhead (OH).
2. Prepare journal entries for Principles' June 2020 variable and fixed
manufacturing overhead costs and variances; write off these variances to
Cost of Goods Sold for the quarter ending June 30, 2020.
Actual Input
Actual Costs
Flexible
Allocated
3.
How does the planning and control of variable manufacturing overhead costs
differ from the planning and control of fixed manufacturing overhead costs?
Incurred
Budgeted Rate
Budget
Overhead
Variable OH
Print
Done
Data Table
Actual
Static
The Principles Corporation (June 2020)
Results
Budget
Number of centrifuges assembled and sold
124
135
Hours of assembly time
220
Variable manufacturing overhead cost per hour of assembly time
$
31
Variable manufacturing overhead costs
$
7,280
Fixed manufacturing overhead costs
$
13,250 $
12,150
Enter any number in the edit fields and then click Check Answer.
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Done
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remaining
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The following information in respect of a production process is available for the month of April 2023. Budgeted Actual Output Units 120000 130000 Hours 120000 132000 Fixed Overheads 180000 200000 Variable Overheads 240000 272000 Working Days 100 104 Compute the relevant overheads variances.
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Required information [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Actual Cost Compute the (1) direct materials price variance and (2) direct materials quantity variance. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places. $ GA Standard Quantity and Cost 6 pounds @ $8 per pound 3 DLH @ $17 per DLH 3 DLH @ $12 per DLH 0 $ Actual Results 47,400 pounds @ $8.10 per pound 23,100 hours @ $17.50 per hour $ 286,100 0 0 7,800 units S $ 0 Standard Cost
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The journal entry to record the direct materials quantity variance may be recorded Group of answer choices Only when direct materials are purchased Only when direct materials are issued to production All of the choices are correct When inventory is taken at the end of the year.
Fischer Fabrication reported the following information concerning its direct materials: Direct materials purchased (actual) Standard cost of materials purchased Standard price tires actual amount of materials used Actual production Standard direct materials costs per unit produced Assume that Fischer Fabrication had no beginning finished goods inventory and only produced one product. A count of inventory showed that 4,552 units remained in the warehouse. $ 378,300 $361,500 $ 333,500 56,900 units $6 Required: a. Assume Fischer writes off all variances to Cost of Goods Sold. Prepare the entries Fischer would make to record and close out the variances. b. Assume Fischer prorates all variances to the appropriate accounts. Prepare the entries Fischer would make to record and close out the variances. Complete this question by entering your answers in the tabs below. Required A Required B Assume Fischer writes off all variances to Cost of Goods Sold. Prepare the entries Fischer would make to…
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs. Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Actual cars washed Revenue Expenses: Cleaning supplies Electricity Haintenance Hages and salaries Depreciation For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6,70 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Honth Ended August 31 Rent Fixed Cost per Month Administrative expenses Total expense Net operating income $1,300 $4,700 $8,100 $1,900 $1,700 Cost per Car Washed 0,400 $57,710 5,480 2,017 1,070 7,550 8,100 2,100 1,932 20,249 $ 29,4611 $0.60 $0.09 $0.10 $0.30 $0.04 Required: Calculate the company's revenue and spending variances for…
Jake's Roof Repair has provided the following data concerning its costs Cost per Repair Hour $15.00 $ 7.70 $0.50 $ 3.50 $ 0.60 Wages and salaries Parts and supplies Equipeent depreciation Truck operating expenses Rent Administrative expenses Fixed Cost per Month $ 21,000 $2,730 $ 5,709 $ 4,020 $3,050 For example, wages and salaries should be $21,000 plus $15.00 per repair-hour. The company expected to work 2.900 repair-hours in May, but actually worked 2.800 repair-hours. The company expects its sales to be $52.00 per repair-hour Required: Compute the company's activity variances for May (Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
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