Question list Question 1 Question 2 Question 3 O Question 4 O Question 5 Question 6 Requirements K Grand, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Print Grand allocates manufacturing overhead to production based on standard direct labor hours. Grand reported the following actual results for 2024: actual number of units produced, 1,000; actual variable overhead, $3,800; actual fixed overhead, $2,500; actual direct labor hours, 1,500. Read the requirements. 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 efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost, AQ = actual quantity; FOH = fixed overhead, SC = standard cost, SQ = standard quantity; VOH = variable overhead.) Formula Variance VOH cost variance VOH efficiency variance 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. 2. Explain why the variances are favorable or unfavorable. Done Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours $1,200 $1,600 800 hours 400 units 2 hours per unit - X
Question list Question 1 Question 2 Question 3 O Question 4 O Question 5 Question 6 Requirements K Grand, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Print Grand allocates manufacturing overhead to production based on standard direct labor hours. Grand reported the following actual results for 2024: actual number of units produced, 1,000; actual variable overhead, $3,800; actual fixed overhead, $2,500; actual direct labor hours, 1,500. Read the requirements. 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 efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost, AQ = actual quantity; FOH = fixed overhead, SC = standard cost, SQ = standard quantity; VOH = variable overhead.) Formula Variance VOH cost variance VOH efficiency variance 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. 2. Explain why the variances are favorable or unfavorable. Done Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours $1,200 $1,600 800 hours 400 units 2 hours per unit - X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
answer please with workings answer in text
Transcribed Image Text:Question list
Question 1
Question 2
Question 3
Question 4
O Question 5
O Question 6
Requirements
1.
2.
K
Grand, Inc. uses a standard cost system and provides the following information.
(Click the icon to view the information.)
Print
Grand allocates manufacturing overhead to production based on standard direct labor hours. Grand reported the following actual
results for 2024: actual number of units produced, 1,000; actual variable overhead, $3,800; actual fixed overhead, $2,500; actual
direct labor hours, 1,500.
Read the requirements.
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 efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC =
actual cost, AQ = actual quantity; FOH = fixed overhead; SC = standard cost, SQ = standard quantity; VOH = variable overhead.)
Variance
VOH cost variance
VOH efficiency variance
Compute the variable overhead cost and efficiency variances and fixed
overhead cost and volume variances.
Explain why the variances are favorable or unfavorable.
Done
Formula
Data table
Static budget variable overhead
Static budget fixed overhead
Static budget direct labor hours
Static budget number of units
Standard direct labor hours
Print
$1,200
$1,600
800 hours
400 units
2 hours per unit
Done
- X
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