information is available for the last operating month:The plant produced and sold 29,348 fixtures for $72 each. Budgeted production was 30,000 fixtures.• Standard variable costs per fixture follow:.Direct materials: 4 pounds at $4Direct labor: 0.1 hours at $40Variable production overhead: 0.4 machine-hours at $20 per hourTotal variable costsFixed production overhead costs:Monthly budget $817,600Fixed overhead is applied at the rate of $30 per fixture.• Actual production costs:Direct materials purchased and used: 106,900 pounds at $4.39Direct labor: 2,920 hours at $45.25Variable overhead: 12,100 machine-hours at $19.59 per hourFixed overheadRequired:a. Prepare a cost variance analysis for each variable cost for the River Plant.b. Prepare a fixed overhead cost variance analysis.Complete this question by entering your answers in the tabs below.c. (Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances areclosed to Cost of Goods Sold at the end of the operating period.Required A Required BRequired CActual costsActual inputs at standard priceFlexible budgetPrice varianceEfficiency varianceTotal variance$ 16.004.008.00$28.00Prepare a cost variance analysis for each variable cost for the River Plant.Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do notselect either option.Direct Materials$ 469,291$ 469,291132,130237,039874,000Direct LaborVariable Overhead

Name: information is available for the last operating month:The plant produ
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: information is available for the last operating month:The plant produced and sold 29,348 fixtures for $72 each. Budgeted production was 30,000 fixtures.• Standard variable costs per fixture follow:.Direct materials: 4 pounds at $4Direct labor: 0.1 h

Variance analysis It is the study of deviations of actual behavior and forecasted behavior in…

Business

Accounting

Required: a. Prepare a cost variance analysis for each variable cost for the River Plant. b. Prepare a fixed overhead cost variance analysis. c.(Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances are closed to Cost of Goods Sold at the end of the operating period. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a cost variance analysis for each variable cost for the River Plant. Note: 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. Actual costs Actual inputs at standard price Flexible budget Price variance Efficiency variance Total variance Direct Materials $469,291 Direct Labor Variable Overhead

Required: a. Prepare a cost variance analysis for each variable cost for the River Plant. b. Prepare a fixed overhead cost variance analysis. c.(Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances are closed to Cost of Goods Sold at the end of the operating period. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a cost variance analysis for each variable cost for the River Plant. Note: 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. Actual costs Actual inputs at standard price Flexible budget Price variance Efficiency variance Total variance Direct Materials $469,291 Direct Labor Variable Overhead

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: What formula do we use in accounting to determine estimated total manufacturing overhead (MOH)?…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Need some help making a cheet sheet for an up coming test. please provide examples. The exam covers…

A: The objective of the question is to create a cheat sheet for an upcoming test on accounting,…

Q: Multiple choice question. total fixed manufacturing overhead cost total manufacturing overhead…

A: The total manufacturing costs of the product or job include variable and fixed cost. The variable…

Q: Casino Pest Control (CPC) provides services to residential households by an application of a special…

A: Material cost variance is the difference of standard cost of the product and actual cost of the…

Q: Assume that Fields uses the FIFO method of process costing. a. Calculate the number of units started…

A: "work in progress" is a financial and accounting term, it denotes the worth of unfinished…

Q: The following partial information is contained in the variance analysis received from the Western…

A: Variable overhead variance is the difference between actual variable overhead incurred and the the…

Q: the following statements about predetermined overhead rates are correct, EXCEPT: O a. based on…

A: Overhead are those expenses of the entity/firm which it made after getting the prime cost of the…

Q: t variances. Select the required formulas, compute the cost variances for direct materials and…

A: Variiances ariise when the actual results differs from standard or budgeted results. There are…

Q: Knowledge Check 01 In the cost formula (Y = a +bX) that is used to estimate the total manufacturing…

A: In the cost formula (Y = a + bX) used to estimate total manufacturing overhead cost, the symbol "a"…

Q: Exercise 21-15 (Algo) Direct materials and direct labor variances LO P3 The following information…

A: Direct material variance is the difference between actual direct material cost and standard direct…

Q: I need help with number 2.

A: Journalizing is the process of recording/classifying the business transaction initially into books…

Q: Direct materials quantity per unit Direct materials price per pound Direct labor hours per unit…

A: Solution: a. Normal standard cost & Ideal standard cost : Normal standard cost = (Direct…

Q: Cost of goods sold Required: 1. Determine for the period the following items: a. Flexible budget for…

A: Overhead Variance is the variance in the total overhead cost variance is calculated considering the…

Q: 1: Using the traditional approach to assigning overhead costs to academic programs:a. Calculate the…

A: We can explain further as follows;1. Traditional Overhead Allocation ApproachThe traditional…

Q: Rankin Fabrication reports the following information with respect to its direct materials: 33,700…

A: DIRECT MATERIALS COST VARIANCEDirect materials cost variance is the difference between the actual…

Q: Required information [The following information applies to the questions displayed below.] AirPro…

A: The variance is the difference between the standard and actual cost data. The variance can be…

Q: 1) In a company's standard costing system direct labor-hours are used as the base for applying…

A: Labor Efficiency Variance: It is also known as labor usage variance. It is calculated as the…

Q: Use the information provided to answer the questions. Actual price paid per pound of material Total…

A: DM price variance calculates, how much actual price has affected the total cost of direct material.…

Q: Required: Prepare Crystal Cold's full absorption costing income statement and variable costing…

A: In absorption costing method, fixed manufacturing overheads also gets absorbed in accordance with…

Q: Harlow Parts Superior Plant Master Budget (For July) Quantity Revenue Variable manufacturing cost…

A: In variance analysis management compares actual results with the budgeted figures to find any…

Q: Fortes Incorporated has provided the following data concerning one of the products in its standard…

A: Variance analysis is the difference between the standard performance and the actual performance,…

Q: Exercise 17-11 (Algo) Computing product cost per unit using plantwide method and activity-based…

A: The activity based costing is used to apply overhead cost to products on the basis of different…

Q: Maple Leaf Production manufactures truck tires. The following information is available for the last…

A: A management accounting method for estimating a company's product or service costs is called…

Q: Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis.

A: Master Budget :> Master budget is a summary budget which incorporates the components of all…

Q: Performance Report Drizzdale Industries - Pharmaceutical Segment For the Fiscal Year Ended December…

A: Performance Report Drizzdale Industries - Pharmaceutical Segment For Fiscal Year Ended December…

Q: Lucia Company has set the following standard cost per unit for direct materials and direct labor.…

A: Note : The variance is the difference between actual data and standard production data. The…

Q: Required:1. Using the traditional approach to assigning overhead costs to academic programs:a.…

A: Traditional Costing ApproachThe traditional costing approach uses a single predetermined overhead…

Q: Record the materials costs, including the unfavorable quantity and favorable price variances. Note:…

A: Materials price variance is the difference between the actual price paid for materials to budgeted…

Q: From the choices presented in parentheses, choose the appropriate term for completing each of the…

A: Costs are classified into two categories Direct costs - which can be traced to product easily…

Q: Required: a. Prepare a varlance analysis for direct materials and direct labor. b. Assume that all…

A: Given information:> Standard price of material = $2.8 per ounce> total standard cost per unit…

Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

Topic Video

Question

information is available for the last operating month:
The plant produced and sold 29,348 fixtures for $72 each. Budgeted production was 30,000 fixtures.
• Standard variable costs per fixture follow:
.
Direct materials: 4 pounds at $4
Direct labor: 0.1 hours at $40
Variable production overhead: 0.4 machine-hours at $20 per hour
Total variable costs
Fixed production overhead costs:
Monthly budget $817,600
Fixed overhead is applied at the rate of $30 per fixture.
• Actual production costs:
Direct materials purchased and used: 106,900 pounds at $4.39
Direct labor: 2,920 hours at $45.25
Variable overhead: 12,100 machine-hours at $19.59 per hour
Fixed overhead
Required:
a. Prepare a cost variance analysis for each variable cost for the River Plant.
b. Prepare a fixed overhead cost variance analysis.
Complete this question by entering your answers in the tabs below.
c. (Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances are
closed to Cost of Goods Sold at the end of the operating period.
Required A Required B
Required C
Actual costs
Actual inputs at standard price
Flexible budget
Price variance
Efficiency variance
Total variance
$ 16.00
4.00
8.00
$28.00
Prepare a cost variance analysis for each variable cost for the River Plant.
Note: 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 Materials
$ 469,291
$ 469,291
132,130
237,039
874,000
Direct Labor
Variable Overhead

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Variance analysis

VIEW

Step 2: Answer to question a

VIEW

Step 3: Answer to Question b

VIEW

Step 4: Journal Entries for variances

VIEW

Solution

VIEW

Step by step

Solved in 5 steps with 9 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Overhead Variances and Their Disposal Warner Company has the following data for the past year: Actual overhead Applied overhead: Work-in-process inventory Finished goods inventory Cost of goods sold Total $402,000 $88,000 176,000 176,000 $440,000 Warner uses the overhead control account to accumulate both actual and applied overhead.
Single Plantwide Rate and Activity-Based Costing Whirlpool Corporation (WHR) conducted an activity-based costing study of its Evansville, Indiana, plant in order to identify its most profitable products. Assume that we select three representative refrigerators (out of 333): one low-, one medium-, and one high-volume refrigerator. Additionally, we assume the following activity-base information for each of the three refrigerators: Three Representative Number of Machine Number of Number of Sales Number of Refrigerators Hours Setups Orders Units Refrigerator-Low Volume 24 14 38 160 Refrigerator-Medium Volume 225 13 88 1,500 Refrigerator-High Volume 900 120 6,000 Prior to conducting the study, the factory overhead allocation was based on a single machine hour rate. The machine hour rate was $200 per hour. After conducting the activity-based costing study, assume that three activities were used to allocate the factory overhead. The new activity rate information is assumed to be as follows:…
! Required information [The following information applies to the questions displayed below.] For many years, Thomson Company manufactured a single product called LEC 40. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called LEC 90 that has become increasingly popular. The LEC 90 is a more complex product, requiring 0.60 hours of direct labor time per unit to manufacture and extensive machining in the automated portion of the plant. The LEC 40 requires only 0.20 hours of direct labor time per unit and only a small amount of machining. Manufacturing overhead costs are currently assigned to products on the basis of direct labor-hours. Despite the growing popularity of the company's new LEC 90, profits have been declining steadily. Management is beginning to believe that there may be a problem with the company's costing system. Direct material and direct labor costs per unit are as follows: Direct materials Direct labor…
I need help with parts B & C please!! REQUIRED C. Record entry for direct material costs payable and material variances. Record entry for direct labor costs payable and labor variances. Record the entry for variable overhead applied. Record the entry for variable overhead payable. Record the variable overhead variances. Record the entry for fixed overhead applied. Record the entry for fixed overhead payable. Record the fixed overhead variances. Record entry to transfer finished goods to inventory. Record sales on accounts. Record cost of goods sold. Record the disposition of variances to cost of goods sold.
Which three items must ALWAYS be the same number on a production cost report? Group of answer choices Total column of the “Total costs, month of” row; Total column of the “Total Costs” row in the “Costs” section; and Total column of the “Total Costs” row in the “Cost Reconciliation” section. Total units in production, Total units under the “physical units” column, and Total units under the “materials – equivalent units” column. Unit costs for materials, labor, and manufacturing overhead. Ending WIP inventory amounts for materials, conversion costs, and total costs.
! Required information Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Machining Designing costs Setup costs Total Cost of Pool Number of machine hours Number of design hours. Number of batches. Cost Driver $416,700 Number of machine hours 93,100 Number of design hours 73,338 Number of batches Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Estimated Cost Driver 92,600 9,500 510 Product A Product B Product C 36,000 46,000 10,600 3,800 2,100 3,600 285 50 175
Please do not give solution in image format and show calculation thanku
1. Compute for Spending Variance 2. Compute for Variable Overhead Efficiency Variance 3. Compute for Controllable Variance
Please look at the questions on the first picture and answer them on secound picture. thanks for your time
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
1. With ABC, overhead costs are assigned to each product based on ________. Group of answer choices machine hours per product price of the product a predetermined overhead rate for a single cost driver the proportion of that product’s use of the cost driver
Please help me with the functions needed to populate the correct answers in the highlighted areas. Thank you! Accessibility tab summary: Financial information for Patterson Incorporated, is presented in cells A4 to G14 and rows 16 to 17. A statement of requirement is presented in rows 19 to 24. A table for Standard Cost Variance Analysis - Direct Materials for student presentation is presented in cells A26 to B29 and A31 to C32. A table for Standard Cost Variance Analysis - Variable Manufacturing Overhead for student presentation is presented in cells A43 to B45 and A47 to C48. A statement of requirement is presented in row 50. A table for student presentation is presented in cell A52 to E62. Standards for one of Patterson, Inc.'s products is shown below, along with actual cost data for the month: Direct materials: Standard 2.4 yards @ $2.75 per yard $6.60 Actual 3.0 yards @ $2.70 per yard $8.10 Direct…