Taft Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of machine hours. The following data pertain to one month's operations: Variable manufacturing overhead cost incurred: Total flexible budget variable overhead cost: Standard machine hours allowed for actual production: S68,000 $74,550 3,550 MHs Actual machine hours incurred: 3,000 MHs 9 The variable overhead rate variance is: A. $6,550 Favorable В. C. $6,550 Unfavorable $5,000 Favorable D. $5,000 Unfavorable E. None of the above

Taft Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of machine hours. The following data pertain to one month's operations: Variable manufacturing overhead cost incurred: Total flexible budget variable overhead cost: Standard machine hours allowed for actual production: S68,000 $74,550 3,550 MHs Actual machine hours incurred: 3,000 MHs 9 The variable overhead rate variance is: A. $6,550 Favorable В. C. $6,550 Unfavorable $5,000 Favorable D. $5,000 Unfavorable E. None of the above

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Description: Taft Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on thebasis of machine hours. The following data pertain to one month's operations:Variable manufacturing overhead cost incurred:Total

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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Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Inform LLL's standard cost card follows: Variable manufacturing overhead During August, LLL had the following actual results: Units produced and sold Actual variable overhead Actual direct labor hours Standard Quantity 0.6 Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance 26,300 $ 9,590 17,000 Standard Rate $0.80 Standard. Unit Cost $0.48 Required: Compute LLL's variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" unfavorable, and "None" for no effect (i.e., zero variance).
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Franklin Company established a predetermined fixed overhead cost rate of $36 per unit of product. The company planned to make 7,700 units of product but actually produced only 7,400 units. Actual fixed overhead costs were $286,100. Required Determine the fixed cost spending variance and indicate whether it is favorable (F) or unfavorable (U). Determine the fixed cost volume variance and indicate whether it is favorable (F) or unfavorable (U)
Shown below are the relevant data relating to fixed overhead costs of Calming Balm Corporation for a recent period is given below: Costs: Actual fixed overhead incurred P88,000 Spending variance 4,000 F Activity: Number of units produced 9,500 Standard hours allowed per unit 3 Normal capacity (machine hours) 20,000 Overhead cost is applied to products on the basis of machine hours. Required: Budgeted fixed overhead Fixed overhead rate per hour and per unit Volume variance
Orlando Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 12,000 Actual variable overhead incurred: $67,700 Actual machine hours worked: 17,500 Standard variable overhead cost per machine hour: $4.90 If Orlando estimates 1.30 hours to manufacture a completed unit, the company's variable-overhead spending variance is: Multiple Choice $9,310 unfavorable. $18,050 favorable. $9,310 favorable.
Harry Company's standard variable overhead rate is $6.00 per direct labor hour, and each unit requires 2 standard direct labor hours. During March, Harry recorded 6,000 actual direct labor hours, $37,000 actual variable overhead costs, and 2,900 units of product manufactured. What is the total variable overhead variance for March for Harry? a.$1,200 U b.$2,200 U c.$600 U d.$1,000 U
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The following standard costs were used for one of its products: Standard Cost per Unit Fixed overhead Total 9 hours @ $13 per hour $ 117 Overhead is applied to products on the basis of standard direct labor hours for actual production. The following information is available regarding the company's operations for the period: Actual units produced Total actual direct labor hours Actual fixed manufacturing overhead incurred Budgeted fixed manufacturing overhead for the period Budgeted units for the period Required: Calculate the fixed overhead variances. Use your answer to answer the following questions. 1,200 units 8,500 hours $110,000 $122,850 1,050 units
Not Graded... Material, Labor, and Variable Overhead VariancesThe following summarized manufacturing data relate to Thomas Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (2 lb. @ $17.00/lb.) $34 Actual (4,200 lb. @ $17.80/lb.) $74,760 Direct labor Standard (0.5 hr. @ $32/hr.) $16 Actual (950 hrs. @ $31/hr.) 29,450 Variable overhead Standard (0.5 hr. @ $14/hr.) $7 Actual - 14,450 Total $57 $118,660 Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials Variances Actual cost: Answer Split cost: Answer Standard cost: Answer Materials price Answer Answer…
Franklin Company established a predetermined fixed overhead cost rate of $36 per unit of product. The company planned to make 7,700 units of product but actually produced only 7,400 units. Actual fixed overhead costs were $286,100. Required a. Determine the fixed cost spending variance and indicate whether it is favorable (F) or unfavorable (U).
Perez Company established a predetermined fixed overhead cost rate of $37 per unit of product. The company planned to make 6,100 units of product but actually produced only 5,300 units. Actual fixed overhead costs were $233,200. Required a. Determine the fixed cost spending variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the fixed cost volume variance and indicate whether it is favorable (F) or unfavorable (U). Note: For all requirements, Select "None" if there is no effect (i.e., zero variance). a. Total spending variance b. Total volume variance
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