Crystal Glassware Company has the following standards and flexible-budget data.6.00 per direct-labor hour3 hours per unit of outputStandard variable-overhead rateStandard quantity of direct laborBudgeted fixed overheadBudgeted output$150,00025,000 unitsActual results for April are as follows:Actual outputActual variable overheadActual fixed overheadActual direct labor16,000 units$384,000$141,00055,000 hoursRequired: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 variance2.Variable-overhead efficiency variance3.Fixed-overhead budget variance4.Fixed-overhead volume variance

Variable-overhead spending variance $54,000 U Variable-overhead efficiency variance $42,000 U…

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).)

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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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

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