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Question:543 The (partial) cost sheet for the single product manufactured at Vienna Company follows. Direct labor (6 hours @ $20) $120 Variable overhead (6 hours @ $2) $ 12 Fixed overhead (6 hours @ $4) $ 24 The master budget level of production is 60,000 direct-labor hours, which is also the production volume used to compute the fixed overhead application rate. Other information available for operations over the past accounting period includes the following. Actual variable overhead incurred $ 1,10,000 Actual fixed overhead incurred $ 2,53,000 Direct labor efficiency variance Variable overhead price variance $140,000 U $4,000 F Required:a. What was the variable overhead efficiency variance?b. What was the fixed overhead price variance?c. What was the fixed overhead production volume variance? The following standards for variable overhead have been established for a company that makes only one product: Standard hours per unit of output 6.6 hours Standard variable overhead rate $13 per hour The following data pertain to operations for the last month: Actual hours 9,800 hours Actual total variable overhead cost $ 1,25,210 Actual output 1,460 units Required:A. What is the variable overhead rate variance for the month? B. What is the variable overhead efficiency variance for the month?

Question:543 The (partial) cost sheet for the single product manufactured at Vienna Company follows. Direct labor (6 hours @ $20) $120 Variable overhead (6 hours @ $2) $ 12 Fixed overhead (6 hours @ $4) $ 24 The master budget level of production is 60,000 direct-labor hours, which is also the production volume used to compute the fixed overhead application rate. Other information available for operations over the past accounting period includes the following. Actual variable overhead incurred $ 1,10,000 Actual fixed overhead incurred $ 2,53,000 Direct labor efficiency variance Variable overhead price variance $140,000 U $4,000 F Required:a. What was the variable overhead efficiency variance?b. What was the fixed overhead price variance?c. What was the fixed overhead production volume variance? The following standards for variable overhead have been established for a company that makes only one product: Standard hours per unit of output 6.6 hours Standard variable overhead rate $13 per hour The following data pertain to operations for the last month: Actual hours 9,800 hours Actual total variable overhead cost $ 1,25,210 Actual output 1,460 units Required:A. What is the variable overhead rate variance for the month? B. What is the variable overhead efficiency variance for the month?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question:543 The (partial) cost sheet for the single product manufactured at Vienna Company follows. Direct labor (6 hours @ $20) $120 Variable overhead (6 hours @ $2) $ 12 Fixed overhead (6 hours @ $4) $ 24 The master budget level of production is 60,000 direct-labor hours, which is also the production volume used to compute the fixed overhead application rate. Other information available for operations over the past accounting period includes the following. Actual variable overhead incurred $ 1,10,000 Actual fixed overhead incurred $ 2,53,000 Direct labor efficiency variance Variable overhead price variance $140,000 U $4,000 F Required:a. What was the variable overhead efficiency variance?b. What was the fixed overhead price variance?c. What was the fixed overhead production volume variance? The following standards for variable overhead have been established for a company that makes only one product: Standard hours per unit of output 6.6 hours Standard variable overhead rate $13 per hour The following data pertain to operations for the last month: Actual hours 9,800 hours Actual total variable overhead cost $ 1,25,210 Actual output 1,460 units Required:A. What is the variable overhead rate variance for the month? B. What is the variable overhead efficiency variance for the month?
Transcribed Image Text:Question:543 The (partial) cost sheet for the single product manufactured at Vienna Company follows. Direct labor (6 hours @ $20) $120 Variable overhead (6 hours @ $2) $ 12 Fixed overhead (6 hours @ $4) $ 24 The master budget level of production is 60,000 direct-labor hours, which is also the production volume used to compute the fixed overhead application rate. Other information available for operations over the past accounting period includes the following. Actual variable overhead incurred $ 1,10,000 Actual fixed overhead incurred $ 2,53,000 Direct labor efficiency variance Variable overhead price variance $140,000 U $4,000 F Required:a. What was the variable overhead efficiency variance?b. What was the fixed overhead price variance?c. What was the fixed overhead production volume variance? The following standards for variable overhead have been established for a company that makes only one product: Standard hours per unit of output 6.6 hours Standard variable overhead rate $13 per hour The following data pertain to operations for the last month: Actual hours 9,800 hours Actual total variable overhead cost $ 1,25,210 Actual output 1,460 units Required:A. What is the variable overhead rate variance for the month? B. What is the variable overhead efficiency variance for the month?
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