Tesla Corp. provided the standard costs and actual costs for factory overhead related to the manufacture of 3,200 units of actual production as follows: Standard Costs Fixed overhead 4 hours per unit at $1.40 per hour (based on 12,000 hours) Variable 4 hours per unit at $2.60 per hour overhead Actual Costs Total variable $31,400 cost Total fixed cost $13,800 The variable factory overhead controllable variance is

Tesla Corp. provided the standard costs and actual costs for factory overhead related to the manufacture of 3,200 units of actual production as follows: Standard Costs Fixed overhead 4 hours per unit at $1.40 per hour (based on 12,000 hours) Variable 4 hours per unit at $2.60 per hour overhead Actual Costs Total variable $31,400 cost Total fixed cost $13,800 The variable factory overhead controllable variance is

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 12PA: ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc....

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At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing basis are as follows: During the year, the company had the following activity: Actual fixed overhead was 12,000 less than budgeted fixed overhead. Budgeted variable overhead was 5,000 less than the actual variable overhead. The company used an expected actual activity level of 12,000 direct labor hours to compute the predetermined overhead rates. Any overhead variances are closed to Cost of Goods Sold. Required: 1. Compute the unit cost using (a) absorption costing and (b) variable costing. 2. Prepare an absorption-costing income statement. 3. Prepare a variable-costing income statement. 4. Reconcile the difference between the two income statements.
Eagle Inc. uses a standard cost system. During the most recent period, the company manufactured 115,000 units. The standard cost sheet indicates that the standard direct labor cost per unit is $1.50. The performance report for the period includes an unfavorable direct labor rate variance of $3,700 and a favorable direct labor time variance of $10,275. What was the total actual cost of direct labor incurred during the period?
At the end of the period, the factory overhead account has a credit balance of 10,000. (a) Is the total factory cost variance favorable or unfavorable? (b) Are the controllable and volume variances favorable or unfavorable?
Misterio Company uses a standard costing system. During the past quarter, the following variances were computed: Misterio applies variable overhead using a standard rate of 2 per direct labor hour allowed. Two direct labor hours are allowed per unit produced. (Only one type of product is manufactured.) During the quarter, Misterio used 30 percent more direct labor hours than should have been used. Required: 1. What were the actual direct labor hours worked? The total hours allowed? 2. What is the standard hourly rate for direct labor? The actual hourly rate? 3. How many actual units were produced?
Can you please give answer this accounting question
The variable factory overhead controllable variance is_.
Mosaic Company applies overhead using machine hours and reports the following information. Compute the total variable overhead cost variance and classify it as favorable or unfavorable. Actual machine hours used . 4,700 hours Standard machine hours (for actual production) 5,000 hours Actual variable overhead rate per hour $4.15 Standard variable overhead rate per hour . $4.00
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The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) Variable overhead Actual Costs Total variable cost, $18,200 Total fixed cost, $7,900 3 hours per unit at $0.74 per hour 3 hours per unit at $1.98 per hour The variable factory overhead controllable variance is O a. $3,350 unfavorable O b. So Oc. $3,350 favorable O d. $2,680 favorable
The standard costs and actual costs for factory overhead for the manufacture of 2,900units of actual production are as follows: Line Item Description Value Fixed overhead (based on 10,000 hours) 3 hours per unit at $0.76 per hour Variable overhead 3 hours per unit at $2.02 per hour Actual CostsTotal variable cost, $17,900Total fixed cost, $7,900 The total factory overhead cost variance is a. $326 unfavorable b. $1,314 favorable c. $2,302 favorable d. $1,314 unfavorable
Rainbow Company uses standard cost system for its production process. Rainbow Company applies overhead based on direct labor hours. The following information is available for October Standard: Direct labor hours per unit 2.20 variable overhead per hour P2.50 fixed overhead per hour (based on 11,990 DLHs) 3.00 Actual: Units produced 4,400 Direct labor hours 8,800 Variable Overhead P29,950 Fixed Overhead 42,300 1. What is the variable overhead spending variance? 2. Using the three-variance approach, what is the efficiency variance?Required to answer. Single choice. 3. Using the two-variance approach, what is the controllable variance?