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Standard DM price per pound (Lbs): $20 Standard DM needed per unit: 2 Lbs Standard DL rate: $15 per hour Standard DL hours per unit: 2 hours of Direct Labor per unit *The actual DM used for 11000 units of production is 24200 lbs which means: 24200 lbs / 11000 actual units produced = 2.2 lbs actual quantity of DM used per unit Actual DL hours: 20000 hours Variable Overhead Rate applied based on per DL hour: $10 *Note: I am helping you here! AQ (AP-SP) = DM Price Variance (AQ x AP) - (AQ x SP) = -42000 Favorable (less spending for DM) $442,000 - (24200 x $20) = DM Price Variance 442,000 - 484,000 = DM Price Variance $42,000 Favorable DM Price Variance please answer the following questions:  7. Variable overhead efficiency variance: 8. Variable overhead rate variance: 9. Total variable overhead: 10. Total fixed overhead spending variance:

Standard DM price per pound (Lbs): $20 Standard DM needed per unit: 2 Lbs Standard DL rate: $15 per hour Standard DL hours per unit: 2 hours of Direct Labor per unit *The actual DM used for 11000 units of production is 24200 lbs which means: 24200 lbs / 11000 actual units produced = 2.2 lbs actual quantity of DM used per unit Actual DL hours: 20000 hours Variable Overhead Rate applied based on per DL hour: $10 *Note: I am helping you here! AQ (AP-SP) = DM Price Variance (AQ x AP) - (AQ x SP) = -42000 Favorable (less spending for DM) $442,000 - (24200 x $20) = DM Price Variance 442,000 - 484,000 = DM Price Variance $42,000 Favorable DM Price Variance please answer the following questions:  7. Variable overhead efficiency variance: 8. Variable overhead rate variance: 9. Total variable overhead: 10. Total fixed overhead spending variance:

FINANCIAL ACCOUNTING
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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Standard DM price per pound (Lbs): $20

Standard DM needed per unit: 2 Lbs

Standard DL rate: $15 per hour

Standard DL hours per unit: 2 hours of Direct Labor per unit

*The actual DM used for 11000 units of production is 24200 lbs which means:

24200 lbs / 11000 actual units produced = 2.2 lbs actual quantity of DM used per unit

Actual DL hours: 20000 hours

Variable Overhead Rate applied based on per DL hour: $10

*Note: I am helping you here!

  • AQ (AP-SP) = DM Price Variance
  • (AQ x AP) - (AQ x SP) = -42000 Favorable (less spending for DM)
  • $442,000 - (24200 x $20) = DM Price Variance
  • 442,000 - 484,000 = DM Price Variance
  • $42,000 Favorable DM Price Variance

please answer the following questions: 

7. Variable overhead efficiency variance:
8. Variable overhead rate variance:
9. Total variable overhead:
10. Total fixed overhead spending variance:

1 2 3 4 14 5 6 7 8 9 10 11 Fixed factory overhead 12 Total manufacturing costs 13 15 A C D E Click in the boxed area beneath the word "Budget," and use the associated pick list to select alternative volume levels. The budget column values change (i.e., "flexible") based on volume. Examine the results and respond to the question at the bottom of the page, which will turn green upon selecting the correct response. Ready Variable Manufacturing Direct material Direct labor Variable factory overhead Total variable costs B Problem Accessibilit Budget Analysis for June, 20XX + Actual $ 442,000 328,000 215,000 SA 11,000 units SA Budget $ Which level of volume is consistent with the manager's claim? >>>> 440,000 330,000 220,000 985,000 $ 990,000 255,000 250,000 $ 1,240,000 $ 1,240,000 $ SA $ Variance (2,000) 2,000 5,000 5,000 (5,000) 11,000 units F
Transcribed Image Text:1 2 3 4 14 5 6 7 8 9 10 11 Fixed factory overhead 12 Total manufacturing costs 13 15 A C D E Click in the boxed area beneath the word "Budget," and use the associated pick list to select alternative volume levels. The budget column values change (i.e., "flexible") based on volume. Examine the results and respond to the question at the bottom of the page, which will turn green upon selecting the correct response. Ready Variable Manufacturing Direct material Direct labor Variable factory overhead Total variable costs B Problem Accessibilit Budget Analysis for June, 20XX + Actual $ 442,000 328,000 215,000 SA 11,000 units SA Budget $ Which level of volume is consistent with the manager's claim? >>>> 440,000 330,000 220,000 985,000 $ 990,000 255,000 250,000 $ 1,240,000 $ 1,240,000 $ SA $ Variance (2,000) 2,000 5,000 5,000 (5,000) 11,000 units F
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