Required information [The following information applies to the questions displayed below.] The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials, direct labor, and manufacturing (factory) overhead. The firm traces all direct costs to products, and it assigns overhead cost to products based on direct labor hours. The company budgeted $12,600 variable factory overhead cost, $90,000 for fixed factory overhead cost and 2,250 direct labor hours (its practical capacity) to manufacture 4,500 pairs of boots in March. The factory used 3,100 direct labor hours in March to manufacture 4,400 pairs of boots and spent $16,200 on variable overhead during the month. The actual fixed overhead cost incurred for the month was $92,400.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required:
1. Compute the factory overhead flexible-budget variance, the factory overhead spending variance, and the efficiency variance for
variable factory overhead for March and state whether each variance is favorable (F) or unfavorable (U).
2. Provide the appropriate journal entry to record the variable overhead spending variance and a second entry to record the variable
overhead efficiency variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute the factory overhead flexible-budget variance, the factory overhead spending variance, and the efficiency variance
for variable factory overhead for March and state whether each variance is favorable (F) or unfavorable (U).
Spending variance
Required 1
Variable overhead flexible-budget variance
Required 2
Provide the appropriate journal entry to record the variable overhead spending variance and a second entry to record the variable
overhead efficiency variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs. (If
no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
View transaction list
< A
Journal entry worksheet
Efficiency variance
B
Record the variable overhead spending variance.
Note: Enter debits before credits.
Transaction
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
>
Transcribed Image Text:Required: 1. Compute the factory overhead flexible-budget variance, the factory overhead spending variance, and the efficiency variance for variable factory overhead for March and state whether each variance is favorable (F) or unfavorable (U). 2. Provide the appropriate journal entry to record the variable overhead spending variance and a second entry to record the variable overhead efficiency variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the factory overhead flexible-budget variance, the factory overhead spending variance, and the efficiency variance for variable factory overhead for March and state whether each variance is favorable (F) or unfavorable (U). Spending variance Required 1 Variable overhead flexible-budget variance Required 2 Provide the appropriate journal entry to record the variable overhead spending variance and a second entry to record the variable overhead efficiency variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list < A Journal entry worksheet Efficiency variance B Record the variable overhead spending variance. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal >
!
Required information
[The following information applies to the questions displayed below.]
The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials,
direct labor, and manufacturing (factory) overhead. The firm traces all direct costs to products, and it assigns
overhead cost to products based on direct labor hours.
The company budgeted $12,600 variable factory overhead cost, $90,000 for fixed factory overhead cost and 2,250 direct
labor hours (its practical capacity) to manufacture 4,500 pairs of boots in March.
The factory used 3,100 direct labor hours in March to manufacture 4,400 pairs of boots and spent $16,200 on variable
overhead during the month. The actual fixed overhead cost incurred for the month was $92,400.
Transcribed Image Text:! Required information [The following information applies to the questions displayed below.] The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials, direct labor, and manufacturing (factory) overhead. The firm traces all direct costs to products, and it assigns overhead cost to products based on direct labor hours. The company budgeted $12,600 variable factory overhead cost, $90,000 for fixed factory overhead cost and 2,250 direct labor hours (its practical capacity) to manufacture 4,500 pairs of boots in March. The factory used 3,100 direct labor hours in March to manufacture 4,400 pairs of boots and spent $16,200 on variable overhead during the month. The actual fixed overhead cost incurred for the month was $92,400.
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