Chillico Corporation produces containers of frozen food. During April, Chillico produced 800 cases of food and incurred the followingactual costs.Variable overheadFixed overheadActual labor cost (5,500 direct-labor hours)Actual material cost (21,000 pounds purchased and used)Overhead is budgeted and applied using direct-labor hours in a standard costing system. Standard cost and annual budgetInformation are as follows:Standard Costs per CaseDirect labor (6 hours at $16 per hour)Direct material (25 pounds at $2.10 per pound)Variable overhead (6 direct-labor hours at $1.80 per hour)Fixed overhead (6 direct-labor hours at $3 per hour)TotalAnnual Budget Information$108,000$180,00060,000 direct-labor hours$7,20015,70092,40049,300Variable overheadFixed overheadPlanned activity for year$ 96.0052.5010.8018.00$177.30 Required:Compute the following cost variances from the available data. (Indicate the effect of each variance by selecting "Favorable" or"Unfavorable". Select "None" and enter "0" for no effect (l.e., zero variance). Do not round Intermediate calculations.)Direct-material price varianceDirect-material purchase price varianceDirect-material quantity varianceDirect-labor rate varianceDirect-labor efficiency varianceVariable-overhead spending varianceVariable-overhead efficiency varianceFixed-overhead budget varianceFixed-overhead volume varianceAnswer is not complete.$Unfavorable(4,200)S (4,200) UnfavorableS(2,100) Unfavorable$(4,400) Unfavorable$(11,200)Unfavorable2,750FavorableUnfavorableUnfavorable$$ (1,260.00)$ (5,700)00000000

The standard costing helps the management in determining variances derived in the actual performance…

Required: Compute the following cost variances from the available data. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (l.e., zero variance). Do not round Intermediate calculations.) Direct-material price variance Direct-material purchase price variance Direct-material quantity variance Direct-labor rate variance Direct-labor efficiency variance Variable-overhead spending variance Variable-overhead efficiency variance Fixed-overhead budget variance Fixed-overhead volume variance Answer is not complete. $ $ (4,200) (4,200) $ $ (2,100) (4,400) $(11,200) $ 2,750 $(1.260.00) $ (5,700) Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Favorable O O O Unfavorable O Unfavorable •

Required: Compute the following cost variances from the available data. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (l.e., zero variance). Do not round Intermediate calculations.) Direct-material price variance Direct-material purchase price variance Direct-material quantity variance Direct-labor rate variance Direct-labor efficiency variance Variable-overhead spending variance Variable-overhead efficiency variance Fixed-overhead budget variance Fixed-overhead volume variance Answer is not complete. $ $ (4,200) (4,200) $ $ (2,100) (4,400) $(11,200) $ 2,750 $(1.260.00) $ (5,700) Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Favorable O O O Unfavorable O Unfavorable •

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which method of closing out the fixed MOH volume variance will have no effect on the financial statements, no matter the capacity used? Question options: a) Prorating the fixed MOH volume variance to FG inventory and COGS. b) Allocating the fixed MOH volume variance equally among WIP Inventory, FG inventory and COGS. c) Prorating the fixed MOH volume variance to WIP Inventory, FG inventory and COGS. d) Allocating the fixed MOH volume variance to COGS.
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Which of the following is a correct equation to calculate the fixed overhead production-volume variance? a. budgeted fixed overhead costs − fixed overhead costs allocated for actual output b. static budget amount − flexible budget amount c. actual costs incurred − fixed overhead costs allocated for actual output d. flexible budget amount − actual costs incurred
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Wetherbee Tech Services (WTS) is a chain of computer maintenance technicians for households and small businesses. The following data are available for last year's services: • WTS recorded 120,900 tech calls last year. It had budgeted 126,800 calls, averaging 90 minutes each. • Standard variable labor and support costs per tech call were as follows: Direct IT specialist services: 90 minutes at $54 per hour Variable support staff, supplies, and overhead: 30 minutes at $24 per hour Fixed overhead costs: Annual budget $4,141,800 • Fixed overhead is applied at the rate of $36.00 per call. . Actual tech service call costs: Direct IT specialist services: 120,900 calls averaging 84 minutes at $56.00 per hour Variable support staff, supplies, and overhead: averaging 40 minutes per call at $22.50 per hour x 120,900 calls Fixed overhead Required: a. Prepare a cost variance analysis for each variable cost for last year. b. Prepare a fixed overhead cost variance analysis. Complete this question by…
Which of the following statements Is true? Multiple Choice The material quantity variance is recorded when overhead is applied to production. The material price and the material quantity variances are recorded at the same time., The materials quantity variance is recorded when materials are used in production. The materials quantity variance is recorded when materials are purchased.
1.What is the labor rate variance ( indicate the effect of each variance by selecting "f" for favorable, U for unfavorable, and None for no effect and round your final answer to the nearest whole number) 2. What is the variable overhead efficiency variance ? ( indicate the effect of each variance by selecting "f" for favorable, U for unfavorable, and None for no effect and round your final answer to the nearest whole number) 3. what is the variable overhead rate variance?
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