Swifty Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials Direct labor Variable-MOH Fixed-MOH (a) Throughout the year, Swifty used 3,780 DL hours in the process of making 3,500 tents. The company had originally planned to produce and sell 3,200 tents with budgeted fixed-MOH cost of $17,600. Its actual fixed-MOH costs amounted to $17,086 for the year. 10 square yards per unit 1.1 DL hours per unit 1.1 DL hours per unit 1.1 DL hours per unit Your answer is correct. Determine Swifty's fixed-MOH price and volume variances. Also identify whether the company's fixed-MOH costs were under-or overapplied, and by how much. Fixed-MOH price variance (b) Fixed-MOH @ $6/square yard @ $16/DL hour @ $2.80/DL hour @ $5/DL hour Fixed-MOH volume variance $ 514 1650 2164 Favorable Favorable Over-applied Record the journal entries to accompany the following transactions for variable-MOH: (1) actual variable-MOH cost incurred (consider that half was for utilities not yet paid, and half was for accrued indirect labor), (2) allocation of variable-MOH cost to production, and (3) recognition of specific variable-MOH variances (while closing out the Variable-MOH Control account). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
Swifty Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials Direct labor Variable-MOH Fixed-MOH (a) Throughout the year, Swifty used 3,780 DL hours in the process of making 3,500 tents. The company had originally planned to produce and sell 3,200 tents with budgeted fixed-MOH cost of $17,600. Its actual fixed-MOH costs amounted to $17,086 for the year. 10 square yards per unit 1.1 DL hours per unit 1.1 DL hours per unit 1.1 DL hours per unit Your answer is correct. Determine Swifty's fixed-MOH price and volume variances. Also identify whether the company's fixed-MOH costs were under-or overapplied, and by how much. Fixed-MOH price variance (b) Fixed-MOH @ $6/square yard @ $16/DL hour @ $2.80/DL hour @ $5/DL hour Fixed-MOH volume variance $ 514 1650 2164 Favorable Favorable Over-applied Record the journal entries to accompany the following transactions for variable-MOH: (1) actual variable-MOH cost incurred (consider that half was for utilities not yet paid, and half was for accrued indirect labor), (2) allocation of variable-MOH cost to production, and (3) recognition of specific variable-MOH variances (while closing out the Variable-MOH Control account). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Aj.1
Transcribed Image Text:Swifty Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and
DL usage and price expectations.
Direct materials
Direct labor
Variable-MOH
Fixed-MOH
(a)
Throughout the year, Swifty used 3,780 DL hours in the process of making 3,500 tents. The company had originally planned to produce
and sell 3,200 tents with budgeted fixed-MOH cost of $17,600. Its actual fixed-MOH costs amounted to $17,086 for the year.
(b)
10 square yards per unit
1.1 DL hours per unit
1.1 DL hours per unit
1.1 DL hours per unit
Your answer is correct.
Determine Swifty's fixed-MOH price and volume variances. Also identify whether the company's fixed-MOH costs were under-or
overapplied, and by how much.
Fixed-MOH price variance
Fixed-MOH
Fixed-MOH volume variance $
(2)
$
(3)
@ $6/square yard
@ $16/DL hour
@ $2.80/DL hour
No. Account Titles and Explanation
(1)
@ $5/DL hour
514
1650
2164
Favorable
Record the journal entries to accompany the following transactions for variable-MOH: (1) actual variable-MOH cost incurred
(consider that half was for utilities not yet paid, and half was for accrued indirect labor), (2) allocation of variable-MOH cost to
production, and (3) recognition of specific variable-MOH variances (while closing out the Variable-MOH Control account). (Credit
account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the
account titles and enter O for the amounts. List all debit entries before credit entries.)
Favorable
Over-applied
Debit
Credit
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