Need help with this question from the prior chapter this is one of them I'm stuck on ### Variance Analysis for Russell Wilson CorporationRussell Wilson Corporation, which manufactures deep space equipment and gears, has provided the following data for a recent month:**Production Data:**- **Budgeted production:** 1,400 gears - **Standard machine-hours per gear:** 4.9 machine-hours - **Budgeted supplies cost:** $5.50 per machine-hour **Actual Data:**- **Actual production:** 1,080 gears - **Actual machine-hours:** 9,300 machine-hours - **Actual supplies cost (total):** $49,642 #### Requirement:Determine the rate and efficiency variances for the variable overhead item supplies, and indicate whether those variances are favorable or unfavorable. *(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect, i.e., zero variance. Input all amounts as positive values.)*### Variance Analysis Table| Description | Variance Amount | Favorable/Unfavorable || ---------------------------------------- | ----------------| --------------------- || Variable overhead rate variance | | || Variable overhead efficiency variance | | |### Explanation:- **Variable Overhead Rate Variance:** This measures the difference between the actual variable overhead rate per machine-hour and the standard rate.- **Variable Overhead Efficiency Variance:** This assesses the efficiency in the usage of machine-hours in production compared to the standard machine-hours expected.Students are encouraged to calculate the variances using the provided data to understand practical applications of variance analysis in manufacturing.

Variable overhead rate variance = (standard rate - actual rate)*actual hours Variable overhead efficiency variance = (standard hours - actual hours)*standard rateVariable overhead rate variance = ($5.50 - $49642/9300)*9300 = $1508 Favorable Variable overhead efficiency variance = (1800*4.9 - 9300)*$5.50 = $2,640 Unfavorable

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Russell Wilson Corporation, which makes deep space equlpment and gears, has provided the following data for a recent month: 1,400 gears 4.9 machine-hours Budgeted production Standard machine-hours per gear Budgeted supplies cost Actual production Actual machine-hours Actual supplies cost (total) $ 5.50 per machine-hour 1,800 gears 9,300 machine-hours $49,642 Required: Determine the rate and efficlency varlances for the varlable overhead Item supplies and Indicate whether those varlances are favorable or unfavorable. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero varlance). Input all amounts as posltive values.) Variable overhead rate variance Variable overhead efficiency variance

Russell Wilson Corporation, which makes deep space equlpment and gears, has provided the following data for a recent month: 1,400 gears 4.9 machine-hours Budgeted production Standard machine-hours per gear Budgeted supplies cost Actual production Actual machine-hours Actual supplies cost (total) $ 5.50 per machine-hour 1,800 gears 9,300 machine-hours $49,642 Required: Determine the rate and efficlency varlances for the varlable overhead Item supplies and Indicate whether those varlances are favorable or unfavorable. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero varlance). Input all amounts as posltive values.) Variable overhead rate variance Variable overhead efficiency 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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