Homework Help is Here – Start Your Trial Now!
Business
Accounting
Question: The following standards for variable overhead have been established for a company that makes only one product: 4.5 hours Standard hours per unit of output Standard variable overhead rate $16 per hour The following data pertain to operations for the last month: Actual hours 8,200 hours Actual total variable overhead cost $ 1,25,000 Actual output 1,810 units A. What is the variable overhead rate variance for the month? B. What is the variable overhead efficiency variance for the month? Rhed Kennel uses tenant days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant day. During December, the kennel budgeted for 4,550 tenant days, but its actual level of activity was 4,500 tenant days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:Data used in budgeting: Fixed element per month Variable element per tenant- dav Revenue $ 35.60 Wages and salaries $ 3,900 $ 9.40 Food and supplies $2,250 $ 14.60 Facility expenses $ 9,900 $ 6.10 Administrative $7,900 $ 0.70 Total expenses $ 23,950 $ 30.80 Actual results for December: Revenue $ 1,59,355 Wages and salaries $ 46,485 Food and supplies $ 66,835 Facility expenses $ 37,535 Administrative expenses $9,865 The activity variance for administrative expenses in December would be: a. $35 U b. $1,220 U c. $35 F d. $1,220 F

Question: The following standards for variable overhead have been established for a company that makes only one product: 4.5 hours Standard hours per unit of output Standard variable overhead rate $16 per hour The following data pertain to operations for the last month: Actual hours 8,200 hours Actual total variable overhead cost $ 1,25,000 Actual output 1,810 units A. What is the variable overhead rate variance for the month? B. What is the variable overhead efficiency variance for the month? Rhed Kennel uses tenant days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant day. During December, the kennel budgeted for 4,550 tenant days, but its actual level of activity was 4,500 tenant days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:Data used in budgeting: Fixed element per month Variable element per tenant- dav Revenue $ 35.60 Wages and salaries $ 3,900 $ 9.40 Food and supplies $2,250 $ 14.60 Facility expenses $ 9,900 $ 6.10 Administrative $7,900 $ 0.70 Total expenses $ 23,950 $ 30.80 Actual results for December: Revenue $ 1,59,355 Wages and salaries $ 46,485 Food and supplies $ 66,835 Facility expenses $ 37,535 Administrative expenses $9,865 The activity variance for administrative expenses in December would be: a. $35 U b. $1,220 U c. $35 F d. $1,220 F

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 15E: Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing...
See similar textbooks
icon
Related questions
Question

tutor solve all this problems

Question: The following standards for variable overhead have been established for a company that makes only one product: 4.5 hours Standard hours per unit of output Standard variable overhead rate $16 per hour The following data pertain to operations for the last month: Actual hours 8,200 hours Actual total variable overhead cost $ 1,25,000 Actual output 1,810 units A. What is the variable overhead rate variance for the month? B. What is the variable overhead efficiency variance for the month? Rhed Kennel uses tenant days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant day. During December, the kennel budgeted for 4,550 tenant days, but its actual level of activity was 4,500 tenant days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:Data used in budgeting: Fixed element per month Variable element per tenant- dav Revenue $ 35.60 Wages and salaries $ 3,900 $ 9.40 Food and supplies $2,250 $ 14.60 Facility expenses $ 9,900 $ 6.10 Administrative $7,900 $ 0.70 Total expenses $ 23,950 $ 30.80 Actual results for December: Revenue $ 1,59,355 Wages and salaries $ 46,485 Food and supplies $ 66,835 Facility expenses $ 37,535 Administrative expenses $9,865 The activity variance for administrative expenses in December would be: a. $35 U b. $1,220 U c. $35 F d. $1,220 F
Transcribed Image Text:Question: The following standards for variable overhead have been established for a company that makes only one product: 4.5 hours Standard hours per unit of output Standard variable overhead rate $16 per hour The following data pertain to operations for the last month: Actual hours 8,200 hours Actual total variable overhead cost $ 1,25,000 Actual output 1,810 units A. What is the variable overhead rate variance for the month? B. What is the variable overhead efficiency variance for the month? Rhed Kennel uses tenant days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant day. During December, the kennel budgeted for 4,550 tenant days, but its actual level of activity was 4,500 tenant days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:Data used in budgeting: Fixed element per month Variable element per tenant- dav Revenue $ 35.60 Wages and salaries $ 3,900 $ 9.40 Food and supplies $2,250 $ 14.60 Facility expenses $ 9,900 $ 6.10 Administrative $7,900 $ 0.70 Total expenses $ 23,950 $ 30.80 Actual results for December: Revenue $ 1,59,355 Wages and salaries $ 46,485 Food and supplies $ 66,835 Facility expenses $ 37,535 Administrative expenses $9,865 The activity variance for administrative expenses in December would be: a. $35 U b. $1,220 U c. $35 F d. $1,220 F
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS