Rundle Company established a predetermined fixed overhead cost rate of $28 per unit of product. The company planned to make 7,600 units of product but actually produced only 7,300 units. Actual fixed overhead costs were $220,900. Required a. Determine the fixed cost spending variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the fixed cost volume variance and Indicate whether it is favorable (F) or unfavorable (U). Note: For all requirements, Select "None" If there is no effect (I.e., zero variance). a. Total spending variance b. Total volume variance

Rundle Company established a predetermined fixed overhead cost rate of $28 per unit of product. The company planned to make 7,600 units of product but actually produced only 7,300 units. Actual fixed overhead costs were $220,900. Required a. Determine the fixed cost spending variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the fixed cost volume variance and Indicate whether it is favorable (F) or unfavorable (U). Note: For all requirements, Select "None" If there is no effect (I.e., zero variance). a. Total spending variance b. Total volume variance

Name: Rundle Company established a predetermined fixed overhead cost rate o
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Rundle Company established a predetermined fixed overhead cost rate of $28 per unit of product. The company planned to make7,600 units of product but actually produced only 7,300 units. Actual fixed overhead costs were $220,900.Requireda. Determine

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Print Item Acme Inc. has the following information available: Actual price paid for material $1.00 Standard price for material $1.10 90 Actual quantity purchased and used in production 110 Standard quantity for units produced Actual labor rate per hour $15 Standard labor rate per hour $16 Actual hours 200 230 Standard hours for units produced A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers. Material price variance Material quantity variance Labor rate variance Labor efficiency variance 2$ B. What are some possible causes for this combination of favorable and unfavorable variances?
Thorne Company has the following information available for the past year. They use machine hours to allocate overhead. NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F” (for Favorable) or "U” (for Unfavorable) - capital letter and no quotes. What is the variable overhead efficiency variance? Is it favorable or unfavorable?
The following information relating to a company's overhead costs is available. Budgeted fixed overhead rate per machine hour Actual variable overhead Budgeted variable overhead rate per machine hour Actual fixed overhead Budgeted hours allowed for actual output achieved Based on this information, the total overhead variance is: Multiple Choice O O $69,000 favorable. $112,000 favorable. $43,000 unfavorable. $112,000 unfavorable. $43,000 favorable. $ 1.50 $ 99,000 $ 4.00 $ 20,000 42,000
The following data relate to labor cost for production of 5,100 cellular telephones: Actual: 3,430 hrs. at $12.70 Standard: 3,380 hrs. at $13.00 a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. 1,266 X 910 X -368 X Rate variance Favorable Unfavorable ✓ Time variance Total direct labor cost variance Favorable •✓ b. The employees may have been less-experienced or poorly trained, thereby resulting in a lower may have resulted in less ✔efficient performance. Thus, the actual time required was more ✓ ✔labor rate than planned. The lower level of experience or training ✔than standard.
Acme Inc. has the following information available: Actual Price paid for material $1.00 Standard Price for material $0.90 Actual quantity purchased and used in production 100 Standard quantity for units produced 90 Actual labor rate per hour $15.00 Standard labor rate per hour $14.00 Actual hours 200 hours Standard hours for units produced 190 hours Variance Variance Amount Favorable (F) or Unfavorable (U) Material Price Material Quantity Total DM Cost Variance Labor Rate Labor Efficiency Total DL Cost Variance
Jordan Manufacturing Company established the following standard price and cost data. Sales price $ 8.50 per unit Variable manufacturing cost $ 3.60 per unit Fixed manufacturing cost $ 2,300 total Fixed selling and administrative cost $ 700 total Jordan planned to produce and sell 2,500 units. Actual production and sales amounted to 2,700 units. Required Determine the sales and variable cost volume variances. Classify the variances as favorable (F) or unfavorable (U). Determine the amount of fixed cost that will appear in the flexible budget. Determine the fixed cost per unit based on planned activity and the fixed cost per unit based on actual activity.
4.-Bellingham Company produced 2,300 units of product that required 3.5 standard direct labor hours per unit. The standard fixed overhead cost per unit is $2.65 per direct labor hour at 7,650 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Variance Analysis for Decision Making Bronfenbrenner Co. uses a standard cost system for its single product in which variable overhead is applied on the basis of direct labor hours. The following information is given: Standard costs per unit: Raw materials (1.5 grams at $16 per gram) ............................ $24.00 Direct labor (0.75 hours at $8 per hour).................................. $6.00 Variable overhead (0.75 hours at $3 per hour)........................ $2.25 Actual experience for current year: Units produced ........................................................................ 22,400 units Purchases of raw materials (21,000 grams at $17 per gram) .. $357,000 Raw materials used.................................................................. 33,400 grams Direct labor (16,750 hours at $8 per hour).............................. $134,000 Variable overhead cost incurred.............................................. $48,575 Required: Compute the following variances for raw…
Required information [The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $4.00 per pound) Direct labor (1.8 hours @ $12.00 per hour) $ 12.00 21.60 33.30 Overhead (1.8 hours @ $18.50 per hour) Standard cost per unit $ 66.90 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factory's capacity of 20,000 units per month. Following are the company's budgeted overhead costs per month at the 75% capacity level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Maintenance 30,000 135,000 Total variable overhead costs Fixed overhead costs Depreciation-Building 24,000 70,000 Depreciation-Machinery Taxes and insurance 16,000 Supervisory salaries 254,500 Total fixed overhead costs 364,500
Standard and actual costs for direct materials for the manufacture of 1,000 units of product were as follows: Actual costs 1,540 lbs. @ $9.15 Standard costs 1,600 lbs. @ $9.00 Determine the (a) quantity variance, (b) price variance, and (c) total direct materials cost variance. For each variance, indicate if the variance is favorable or unfavorable. (a) (b) (c)
Opal Manufacturing Company established the following standard price and cost information: Sales price $70 per unit 52 per unit Variable manufacturing cost Fixed manufacturing cost $ 120,000 total $50,000 total Fixed selling and administrative cost Opal expected to produce and sell 29,000 units. Actual production and sales amounted to 32,500 units. Required: a. and b. Determine the sales volume variances, including variances for number of units, sales revenue, variable manufacturing cost, fixed manufacturing cost, and fixed selling and administrative cost. Classify the variances as favorable (F) or unfavorable (U). Note: Indicate the effect of each variance by selecting "Favorable", "Unfavorable", and "None" for no effect (i.e., zero variance). Units Static Budget Flexible Budget Volume Variance Favorable or Unfavorable
A company reports the following information for its direct labor. Actual hours of direct labor used Actual rate of direct labor per hour Standard rate of direct labor per hour Standard hours of direct labor for units produced ! AH = Actual Hours SH= Standard Hours AR= Actual Rate SR Standard Rate Compute the direct labor rate and efficiency variances and identify each as favorable or unfavorable. Q F1 Actual Cost @ 2 W F2 # 3 E 80 F3 $ $ 4 0 Ơ F4 R $ % 5 0 0 * DII 8 F8 Standard Cost ( 9 F9 ) U I O F1