Rozema Inc. produces chemicals for large biotech companies. It has the following data for manufacturing overhead costs during August: Actual costs incurred Costs allocated to products Flexible budget: Budgeted input allowed for actual output produced x budgeted rate Actual input x budgeted rate Required Complete the table below. 1. Rate variance 2. Efficiency variance 3. Production-volume variance Variable $34,500 $30,000 $30,000 $31,600 4. Flexible-budget variance 5. Underallocated (overallocated) manufacturing overhead Fixed $13,500 $14,800 $16,000 $16,000 Variable Fixed

Rozema Inc. produces chemicals for large biotech companies. It has the following data for manufacturing overhead costs during August: Actual costs incurred Costs allocated to products Flexible budget: Budgeted input allowed for actual output produced x budgeted rate Actual input x budgeted rate Required Complete the table below. 1. Rate variance 2. Efficiency variance 3. Production-volume variance Variable $34,500 $30,000 $30,000 $31,600 4. Flexible-budget variance 5. Underallocated (overallocated) manufacturing overhead Fixed $13,500 $14,800 $16,000 $16,000 Variable Fixed

Name: Rozema Inc. produces chemicals for large biotech companies. It has th
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Description: Rozema Inc. produces chemicals for large biotech companies. It has the following data for manufacturing overheadcosts during August:Actual costs incurredCosts allocated to productsFlexible budget: Budgeted input allowed foractual output produced x b

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Rozema Inc. produces chemicals for large biotech companies. It has the following data for manufacturing overhead
costs during August:
Actual costs incurred
Costs allocated to products
Flexible budget: Budgeted input allowed for
actual output produced x budgeted rate
Actual input x budgeted rate
Required
Complete the table below.
1.
Rate variance
2. Efficiency variance
3. Production-volume variance
Variable Fixed
$34,500 $13,500
$30,000 $14,800
$30,000 $16,000
$31,600 $16,000
***
4. Flexible-budget variance
5. Underallocated (overallocated) manufacturing overhead
Variable
Fixed

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