Records at the Farnsworth Corporation contained the following data for the most recent period of activity: Actual total direct labor cost$ 524,260Actual direct labor-hours worked 15, 360Standard direct labor-hours allowed for actual output (flexible budget) 14,720Direct labor price variance$47,900 FActual variable overhead$ 349,900Standard variable overhead rate per standard direct labor-hour$ 21 Variable overhead is applied based on standard direct labor-hours allowed. Required: Compute the labor and variable overhead price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.

Records at the Farnsworth Corporation contained the following data for the most recent period of activity: Actual total direct labor cost$ 524,260Actual direct labor-hours worked 15, 360Standard direct labor-hours allowed for actual output (flexible budget) 14,720Direct labor price variance$47,900 FActual variable overhead$ 349,900Standard variable overhead rate per standard direct labor-hour$ 21 Variable overhead is applied based on standard direct labor-hours allowed. Required: Compute the labor and variable overhead price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...

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At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
Records at the Farnsworth Corporation contained the following data for the most recent period of activity: Actual total direct labor cost Actual direct labor-hours worked $ 506,800 15,280 Standard direct labor-hours allowed for actual output (flexible budget) Direct labor price variance Actual variable overhead Standard variable overhead rate per standard direct labor-hour 14,560 $47,100 F $ 349,100- $ 21 Variable overhead is applied based on standard direct labor-hours allowed. Required: Compute the labor and variable overhead price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct labor: Price variance Efficiency variance Variable overhead: Price variance Efficiency variance
Dineshbhai
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours. Standard direct labor-hours allowed for the actual output $ 481,600 $ 472,000 56,000 57,000 54,000 Required: 1. Compute the fixed portion of the predetermined overhead rate for the year. (Round Fixed portion of the predetermined overhead rate to 2 decimal places.) 2. Compute the fixed overhead budget variance and volume variance. (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.)
Gadubhai
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output $ 426,4e0 $ 420,400 52,ee0 53,000 50,000 Requlred: 1. Compute the fixed portion of the predetermined overhead rate for the year. (Round Flxed portion of the predetermIned overhead rate to 2 declmal places.) 2 Compute the fixed overhead budget variance and volume variance.. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero varlance.). Input ell amounts as positlve values.) 1. Fixed portion of the predetermined overhead rate per DLH 2. Budget variance Volume…
4 Records at the Farnsworth Corporation contained the following data for the most recent period of activity: Actual total direct labor cost Actual direct labor-hours worked $ 550,750 15,480 ints Standard direct labor-hours allowed for actual output (flexible budget) Direct labor price variance Actual variable overhead 14,960 $49,100 F $ 351,100 Standard variable overhead rate per standard direct labor-hour $ 21 Variable overhead is applied based on standard direct labor-hours allowed. Required: Compute the labor and variable overhead price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct labor: Price variance Efficiency variance Variable overhead: Price variance Answer is not complete. F U Efficiency variance U a. It does not indicate completion.