See Clear Company manufactures clear plastic CD cases. It applies variable overhead based on the number of machine hours used. Information regarding See Clear's overhead for the month of December follows: Variable manufacturing overhead During December, See Clear had the following actual results: Number of units produced and sold Actual variable overhead cost Actual machine hours Standard Quantity 0.2 machine hours per case 315,000 $ 45,000 60,000 Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance Standard Rate $0.70 per machine hour Standard Unit Cost $0.14 Required: Compute See Clear's variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).

See Clear Company manufactures clear plastic CD cases. It applies variable overhead based on the number of machine hours used. Information regarding See Clear's overhead for the month of December follows: Variable manufacturing overhead During December, See Clear had the following actual results: Number of units produced and sold Actual variable overhead cost Actual machine hours Standard Quantity 0.2 machine hours per case 315,000 $ 45,000 60,000 Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance Standard Rate $0.70 per machine hour Standard Unit Cost $0.14 Required: Compute See Clear's variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).

Name: See Clear Company manufactures clear plastic CD cases. It applies var
Uploaded: 2024-03-20T06:33:06.000Z
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Description: See Clear Company manufactures clear plastic CD cases. It applies variable overhead based on the number of machine hours used.Information regarding See Clear's overhead for the month of December follows:Variable manufacturing overheadDuring December

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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Tharaldson Corporation makes a product with the following standard costs. Direct materials. Direct labor Variable overhead The variable overhead rate variance for June is: The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost Multiple Choice $1,200 F Standard Quantity or Hours $1,212 U 6.0 ounces 0.3 hours 0.3 hours $ 42,300 $ 13,600 $ 3,700 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. $1,212 F Standard Price or Rate $3.00 per ounce $11.00 per hour $5.00 per hour 3,600 units 3,200 units 21,000 ounces 22,100 ounces 500 hours Standard Cost Per Unit $18.00 $3.30 $ 1.50
Michelle Inc. uses a 4-variance analysis of its manufacturing overhead costs, and has the following results for April. A. Budgeted direct labour-hours per unit is used to allocate variable manufacturing overhead. Fixed overhead is allocated on a per unit basis. B. Budgeted amounts for April 2011 are: Direct labour-hours 0.30 /Unit Variable labour-hour overhead rate: $ 20.00 /DLH Fixed manufacturing overhead: $600,000 Budgeted output (denominator level output): 30,000 Units C. Actual amounts for April 2011 are: Variable manufacturing overhead: $340,000 Fixed manufacturing overhead: $590,000 Direct labour-hours: 16,000 hours Actual output: 40,000 Units What is the variable manufacturing overhead efficiency variance using 4-variance analysis? $101,200 favourable $80,000 unfavourable $101,200 unfavourable $80,000 favourable $181,200 favourable
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