Required: Use the variance formulas to compute the following variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)
Required: Use the variance formulas to compute the following variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Crystal Glassware Company has the following standards and flexible-budget data.
6.00 per direct-labor hour
3 hours per unit of output
Standard variable-overhead rate
Standard quantity of direct labor
Budgeted fixed overhead
Budgeted output
$150,000
25,000 units
Actual results for April are as follows:
Actual output
Actual variable overhead
Actual fixed overhead
Actual direct labor
16,000 units
$384,000
$141,000
55,000 hours
Required:
Use the variance formulas to compute the following variances. (Indicate the effect of each variance by selecting "Favorable" or
"Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)
1.
Variable-overhead spending variance
2.
Variable-overhead efficiency variance
3.
Fixed-overhead budget variance
4.
Fixed-overhead volume variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F701fcf96-5040-4b7b-a6cb-93564ea8758c%2Ff15a629a-a554-4392-8812-53c4532283fa%2Fc76rfeg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Crystal Glassware Company has the following standards and flexible-budget data.
6.00 per direct-labor hour
3 hours per unit of output
Standard variable-overhead rate
Standard quantity of direct labor
Budgeted fixed overhead
Budgeted output
$150,000
25,000 units
Actual results for April are as follows:
Actual output
Actual variable overhead
Actual fixed overhead
Actual direct labor
16,000 units
$384,000
$141,000
55,000 hours
Required:
Use the variance formulas to compute the following variances. (Indicate the effect of each variance by selecting "Favorable" or
"Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)
1.
Variable-overhead spending variance
2.
Variable-overhead efficiency variance
3.
Fixed-overhead budget variance
4.
Fixed-overhead volume variance
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