Question 2 The Teala Company uses standard costing in its manufacturing plant for auto parts. Standard machine time is 6.5 machine hours per unit. The standard cost of a particular auto part, based on a denominator level of 4,500 output units per year, included variable manufacturing overhead at $8 per hour. Budgeted fixed overhead was $351,000. Actual output produced was 4,400 units. Variable manufacturing overhead incurred was $217,000. Fixed manufacturing overhead incurred was $373,000. Actual machine-hours were 28,400. Required: 1.Calculate the following variances in the table. Detailed computations are required. Production- Volume 4-Variance Analysis Variable Overhead Fixed Overhead Spending Variance Efficiency Variance Variance F F Never a variance ل し Never a variance 2.Prepare journal entries for variable and fixed manufacturing overhead costs and variances; write off these variances to cost of goods sold.
Question 2 The Teala Company uses standard costing in its manufacturing plant for auto parts. Standard machine time is 6.5 machine hours per unit. The standard cost of a particular auto part, based on a denominator level of 4,500 output units per year, included variable manufacturing overhead at $8 per hour. Budgeted fixed overhead was $351,000. Actual output produced was 4,400 units. Variable manufacturing overhead incurred was $217,000. Fixed manufacturing overhead incurred was $373,000. Actual machine-hours were 28,400. Required: 1.Calculate the following variances in the table. Detailed computations are required. Production- Volume 4-Variance Analysis Variable Overhead Fixed Overhead Spending Variance Efficiency Variance Variance F F Never a variance ل し Never a variance 2.Prepare journal entries for variable and fixed manufacturing overhead costs and variances; write off these variances to cost of goods sold.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 2
The Teala Company uses standard costing in its manufacturing plant for auto parts. Standard
machine time is 6.5 machine hours per unit. The standard cost of a particular auto part, based on
a denominator level of 4,500 output units per year, included variable manufacturing overhead at
$8 per hour. Budgeted fixed overhead was $351,000. Actual output produced was 4,400 units.
Variable manufacturing overhead incurred was $217,000. Fixed manufacturing overhead
incurred was $373,000. Actual machine-hours were 28,400.
Required:
1.Calculate the following variances in the table. Detailed computations are required.
Production-
Volume
4-Variance
Analysis
Variable
Overhead
Fixed
Overhead
Spending
Variance
Efficiency
Variance
Variance
F
F
Never a variance
ل
し
Never a variance
2.Prepare journal entries for variable and fixed manufacturing overhead costs and variances;
write off these variances to cost of goods sold.
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