Required information SB (Algo) Patel and Sons.... [The following information applies to the questions displayed below.) Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 52,800 machine hours per year, which represents 26,400 units of output. Annual budgeted fixed factory overhead costs are $264,000 and the budgeted variable factory overhead cost rate is $2.90 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 19,900 units, which took 41,800 machine hours. Actual fixed factory overhead costs for the year amounted to $256,000 while the actual variable overhead cost per unit was $2.80. Brief Exercise 15-16 (Algo) Given this information, what was (a) the fixed overhead... [LO 15-2] Based on the information provided above, what was (a) the fixed overhead spending (budget) variance for the year, and (b) the production volume variance for the year? Indicate whether each variance was favorable (F) or unfavorable (U). (Do not round intermediate calculations. Round final answers to the nearest whole dollar amount.) (a) Spending (budget) variance (b) Production volume variance
Required information SB (Algo) Patel and Sons.... [The following information applies to the questions displayed below.) Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 52,800 machine hours per year, which represents 26,400 units of output. Annual budgeted fixed factory overhead costs are $264,000 and the budgeted variable factory overhead cost rate is $2.90 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 19,900 units, which took 41,800 machine hours. Actual fixed factory overhead costs for the year amounted to $256,000 while the actual variable overhead cost per unit was $2.80. Brief Exercise 15-16 (Algo) Given this information, what was (a) the fixed overhead... [LO 15-2] Based on the information provided above, what was (a) the fixed overhead spending (budget) variance for the year, and (b) the production volume variance for the year? Indicate whether each variance was favorable (F) or unfavorable (U). (Do not round intermediate calculations. Round final answers to the nearest whole dollar amount.) (a) Spending (budget) variance (b) Production volume variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
SB (Algo) Patel and Sons...
[The following information applies to the questions displayed below.]
Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for
the plant is defined as 52,800 machine hours per year, which represents 26,400 units of output. Annual budgeted fixed
factory overhead costs are $264,000 and the budgeted variable factory overhead cost rate is $2.90 per unit. Factory
overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual
output for the year was 19,900 units, which took 41,800 machine hours. Actual fixed factory overhead costs for the year
amounted to $256,000 while the actual variable overhead cost per unit was $2.80.
Brief Exercise 15-16 (Algo) Given this information, what was (a) the fixed overhead... [LO 15-2]
Based on the information provided above, what was (a) the fixed overhead spending (budget) variance for the year, and (b) the
production volume variance for the year? Indicate whether each variance was favorable (F) or unfavorable (U). (Do not round
intermediate calculations. Round final answers to the nearest whole dollar amount.)
(a) Spending (budget) variance
(b) Production volume variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc2b130e-3b3d-4633-8023-d10e270ebc15%2F75aa600a-6e04-42df-933a-6a1e94eb1695%2Frpp3anq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
SB (Algo) Patel and Sons...
[The following information applies to the questions displayed below.]
Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for
the plant is defined as 52,800 machine hours per year, which represents 26,400 units of output. Annual budgeted fixed
factory overhead costs are $264,000 and the budgeted variable factory overhead cost rate is $2.90 per unit. Factory
overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual
output for the year was 19,900 units, which took 41,800 machine hours. Actual fixed factory overhead costs for the year
amounted to $256,000 while the actual variable overhead cost per unit was $2.80.
Brief Exercise 15-16 (Algo) Given this information, what was (a) the fixed overhead... [LO 15-2]
Based on the information provided above, what was (a) the fixed overhead spending (budget) variance for the year, and (b) the
production volume variance for the year? Indicate whether each variance was favorable (F) or unfavorable (U). (Do not round
intermediate calculations. Round final answers to the nearest whole dollar amount.)
(a) Spending (budget) variance
(b) Production volume variance
![Required information
SB (Algo) Patel and Sons....
[The following information applies to the questions displayed below.]
Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for
the plant is defined as 52,800 machine hours per year, which represents 26,400 units of output. Annual budgeted fixed
factory overhead costs are $264,000 and the budgeted variable factory overhead cost rate is $2.90 per unit. Factory
overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual
output for the year was 19,900 units, which took 41,800 machine hours. Actual fixed factory overhead costs for the year
amounted to $256,000 while the actual variable overhead cost per unit was $2.80.
Brief Exercise 15-17 (Algo) Given this information, what was (a) the variable overhead.... [LO 15-2]
Based on the information provided above, what was (a) the variable overhead spending variance for the year, and (b) the variable
overhead efficiency variance for the year? Indicate whether each variance was favorable (F) or unfavorable (U). (Do not round
intermediate calculations. Round your final answers to the nearest whole dollar amount.)
(a) Spending variance
(b) Efficiency variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc2b130e-3b3d-4633-8023-d10e270ebc15%2F75aa600a-6e04-42df-933a-6a1e94eb1695%2Fi91is_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
SB (Algo) Patel and Sons....
[The following information applies to the questions displayed below.]
Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for
the plant is defined as 52,800 machine hours per year, which represents 26,400 units of output. Annual budgeted fixed
factory overhead costs are $264,000 and the budgeted variable factory overhead cost rate is $2.90 per unit. Factory
overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual
output for the year was 19,900 units, which took 41,800 machine hours. Actual fixed factory overhead costs for the year
amounted to $256,000 while the actual variable overhead cost per unit was $2.80.
Brief Exercise 15-17 (Algo) Given this information, what was (a) the variable overhead.... [LO 15-2]
Based on the information provided above, what was (a) the variable overhead spending variance for the year, and (b) the variable
overhead efficiency variance for the year? Indicate whether each variance was favorable (F) or unfavorable (U). (Do not round
intermediate calculations. Round your final answers to the nearest whole dollar amount.)
(a) Spending variance
(b) Efficiency variance
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