← Smith Manufacturing designs and manufactures bathtubs for home and commercial applications. The company recorded the following data for its commercial bathtub production line during the month of March: Standard DL hours per tub Standard variable overhead rate per DL hour Standard variable overhead cost per unit Actual variable overhead costs Actual DL hours Actual variable overhead cost per DL hour Actual tubs produced What is the variahle manufacturing overhead rata variance in March? OA. $3,600 favorable O B. $10,500 favorable OC. $10,500 unfavorable O D. $3,600 unfavorable 5 $7.50 $37.50 $30,600 3,600 $8.50 1,000 10

← Smith Manufacturing designs and manufactures bathtubs for home and commercial applications. The company recorded the following data for its commercial bathtub production line during the month of March: Standard DL hours per tub Standard variable overhead rate per DL hour Standard variable overhead cost per unit Actual variable overhead costs Actual DL hours Actual variable overhead cost per DL hour Actual tubs produced What is the variahle manufacturing overhead rata variance in March? OA. $3,600 favorable O B. $10,500 favorable OC. $10,500 unfavorable O D. $3,600 unfavorable 5 $7.50 $37.50 $30,600 3,600 $8.50 1,000 10

Name: What is tha manufacturing overhead rate variance in march...?? ←Smith
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: What is tha manufacturing overhead rate variance in march...?? ←Smith Manufacturing designs and manufactures bathtubs for home and commercial applications. The company recordedthe following data for its commercial bathtub production line during the m

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Crex Co was set up by Cynthia Rex who created her own brand of chalk paint 20 years ago. Using her…

A: Total material yield variance = Standard cost of the standard quantity of input materials in the…

Q: 9. The difference between the Actual cost and the Standard cost for direct labor is called: A)…

A: The correct option is B) Direct Labor Flexible Budget Variance The difference between the Actual…

Q: Sunland Company manufactures deep-sea fishing rods, which it distributes internationally through a…

Q: when the fixed overhead rate is based on budgeted production volume. total over- or underapplied…

A: ANSWER The spending variance is calculated by Subtracting Actual fixed manufacturing overhead from…

Q: Find the missing values and label F/U Direct Labor Direct Labor…

Q: Critically identify the possible causes of the labour and material variances based on obtained…

A: Material usage variance means when actual quantity of material used is more than standard quantity…

Q: a, b, & c

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: Sheridan Corporation accumulates the following data relative to jobs started and finished during the…

A: Variance analysis is quantitive method of getting compression between actual and standard cost. It…

Q: Under the 3 variance method for analyzing overhead, the difference between the actual factory…

A: Under the 3 variance method for analyzing overhead, the difference between the actual factory…

Q: The formula to compute the direct labor rate variance is to calculate the difference between:…

A: The variance is the difference between the actual cost and budgeted cost.

Q: 5

A: An unfavourable labour efficiency variance indicates that more labour hours were used than were…

Q: Sheffield Construction Consultants performs cement core tests in its Greenville laboratory. The…

A: As per the policy, we are supposed to solve the first three sub-parts at a time. Kindly repost the…

Q: Labor rate variance is calculated as: Difference of standard hours and actual hours multiplied by…

A: Labor rate variance is a measure used in cost accounting to quantify the difference between the…

Q: The following information relates to Brookman, Inc.'s overhead costs for the month (Click the icon…

A: VARIANCE ANALYSIS Variance Analysis is the Difference between standard Cost & Actual Cost.…

Q: At the beginning of the year, you estimated the following - Production - 75,000 units Raw Material -…

A: 1. Raw Material Variance= Standard Quantity for Actual Output*Standard rate-Actual Quantity*Actual…

Q: Thank you, how did you get the Adjusted Production Volume Variance?

A: Production Volume Variance = It helps the businesses to assess their performance and how much they…

Q: Can you please explain what we mean by "Short-run" and "long-run" for decision-making in cost…

A: The executive management team of a corporation uses cost accounting to determine all variable and…

Q: Problem 10-45 Variances; Journal Entries; Missing Data (Appendix) (LO 10-3, 10-6, 10-9) Aquafloat…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: Data Year 2 Quarter Year 3 Quarter 1 2 3 4. 1 Budgeted unit sales 40,000 60,000 100,000 50,000…

A: Income Statement is a part of financial statement showing the amount of net profit earned by a…

Q: Identify, by clicking on the relevant boxes in the table below, whether each statement made about…

A: Variance analysis is primarily used by the managers for comparison of actual results with the…

Q: A large labor efficiency variance is prorated to which of the following at year-end? Select one: O…

A: The variance analysis includes various variance formulas like material variance, labor variance, and…

Q: Fortes Incorporated has provided the following data concerning one of the products in its standard…

A: Variance analysis is the difference between the standard performance and the actual performance,…

Q: The actual prices of factory utilities have gone up to be higher than the expectations and the…

A: When there is variance in variable overhead of actual price and expected price then it is known as…

Q: If variable manufacturing overhead is applied to products on the basis of standard direct…

A: Labor efficiency variance = (Actual hours worked - Standard hours allowed)*Standard labor rate per…

Q: With respect to production volume variance, what variables might a manager be able to adjust mid -…

A: Answer:- The term "production volume variance" describes the amount that is added to the standard…

Q: What variable manufacturing overhead cost would be included in the company’s planning budget for…

A: The manufacturing overhead refers to the indirect cost incurred by a factory for the production of…

Q: b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost…

A: Actual Quantity (AQ)= 5,600 units Standard Quantity(SQ) = 5,700 units Actual Price(AP) = $ 5.50…

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.

Topic Video

Question

What is tha manufacturing overhead rate variance in march...??

←
Smith Manufacturing designs and manufactures bathtubs for home and commercial applications. The company recorded
the following data for its commercial bathtub production line during the month of March:
Standard DL hours per tub
Standard variable overhead rate per DL hour
Standard variable overhead cost per unit
Actual variable overhead costs
Actual DL hours
Actual variable overhead cost per DL hour
Actual tubs produced
What is the variahle manufacturing overhead rate varianca in March?
F4
OA. $3,600 favorable.
OB. $10,500 favorable
OC. $10,500 unfavorable
D. $3,600 unfavorable
Q
%6
0
F5
6
c
F6
&
F7
XXX
* 0
DII
F8
9
F9
5
$7.50
$37.50
$30,600
3,600
$8.50
1,000
Next
F10
0 of 2
4)
F11

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduce to variable overhead variance

VIEW

Step 2: Working for actual variable overhead rate

VIEW

Step 3: Working for variable manufacturing overhead rate variance

VIEW

Solution

VIEW

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Required: Compute the materials price and quantity variances for the month. EXERCISE 10-8 Direct Materials and Direct Labor Variances [LO10-1, L010-2] Dawson Toys, Ltd., produces a tov called the Maze. The company has recently established a stan. dard cost system to help control costs and has established the following standards for the Maze tow: Direct materials: 6 microns per toy at $0.50 per micron Direct labor: 1.3 hours per toy at $8 per hour During July, the company produced 3,000 Maze toys. Production data for the month on the toy follow: Direct materials: 25,000 microns were purchased at a cost of $0.48 per micron. 5,000 of these microns were still in inventory at the end of the month. Direct labor: 4,000 direct labor-hours were worked at a cost of $36,000.
what is the formula or equations on how to calculate for spending variance for March 31
Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $4.40 per pound) Direct labor (6 hours @ $14 per hour) Variable overhead (6 hours @ $8 per hour) Fixed overhead (6 hours @ $11 per hour) $ 132.00 84.00 48.00 66.00 $ 330.00 Standard cost per unit Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the company's capacity of 50,000 units per quarter. The following additional information is available. Production (in units) Standard direct labor hours (6 DLH per unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead Operating Levels 70% 80% 90% 35,000 210,000 40,000 240,000 45,000 270,000 $ 2,640,000 $ 1,680,000 $ 2,640,000 $ 2,640,000 $ 1,920,000 $ 2,160,000 During the current quarter, the company operated at 90% of capacity and produced 45,000 units; actual direct labor totaled 266,000 hours. Units produced were assigned the following…
Which of the following is true of direct labor variances? a. The labor efficiency variance measures the difference between what was paid to direct laborers and what should have been paid. b. The labor rate variance measures the difference between the labor hours that were actually used and the labor hours that should have been used. c. The labor rate variance measures the difference between the labor hours that were originally budgeted and the labor hours that should have been used. d. The labor rate and labor efficiency variances will always add up to the total labor variance. e. The labor rate variance measures the difference between the labor hours that were actually used and the labor hours that were originally budgeted.
Required: Calculate all variances and prepare an operating statement for the month endedJune 2015 by using the following table format. Sales variances £ Favourable (F)/Adverse (A) Sales price variance: Sales volume variance: Total sales variance Direct material variances £ Favourable (F)/Adverse (A) Material price variance: Material usage variance: Total direct material variance Direct labour variances £ Favourable (F)/ Adverse (A) Labour rate variance: Labour efficiency variance: Total direct labour variance Variable overhead variances £ Favourable (F)/ Adverse (A) Variable…
The direct labor rate variance is calculated by multiplying the standard hours that should have been worked for the actual output by the difference between the standard labor rate and the actual labor rate. O True O False
Subject-Acounting
Primara Corporation has a standard costing system in which it applies overhead to products on the basis of the standard direct labour- hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted standard direct labour-hours (denominator level of activity) Actual direct labour-hours Standard direct labour-hours allowed for the actual output $ 500,000 $ 508,000 50,000 54,000 52,000 Required: 1. Compute the fixed portion of the predetermined overhead rate for the year. Predetermined overhead rate per DLH
M8(7)
kk. Subject :- Accounting
“Our workers are all under labor contracts; therefore, our labor rate variance is bound to be zero.”Discuss.
The variable overhead spending variance is most effective in measuring: O how well overhead spending matches the targets set in the original budget at the beginning of the year. O the efficiency with which the activity base was utilized in production. O the excessive use of overhead resources. O the utilization of plant facilities.