The following data is given for the Bahia Company: Budgeted production Actual production Materials: Standard price per pound Standard pounds per completed unit Actual pounds purchased and used in production Actual price paid for materials Labor: Standard hourly labor rate Standard hours allowed per completed unit Actual labor hours worked Actual total labor costs. Overhead: Actual and budgeted fixed overhead Standard variable overhead rate Actual variable overhead costs Overhead is applied on standard labor hours. The variable factory overhead controllable variance is Ca. $88,695.91 unfavorable b. $88,695.91 favorable Oc. $17,090.00 unfavorable d. $17,090.00 favorable 1,026 units 939 units $1.859 11 10,019 $20,539 $14.33 per hour 4.5 4,835.85 $73,747 $1,046,000 $28.00 per standard labor hour $135,404
The following data is given for the Bahia Company: Budgeted production Actual production Materials: Standard price per pound Standard pounds per completed unit Actual pounds purchased and used in production Actual price paid for materials Labor: Standard hourly labor rate Standard hours allowed per completed unit Actual labor hours worked Actual total labor costs. Overhead: Actual and budgeted fixed overhead Standard variable overhead rate Actual variable overhead costs Overhead is applied on standard labor hours. The variable factory overhead controllable variance is Ca. $88,695.91 unfavorable b. $88,695.91 favorable Oc. $17,090.00 unfavorable d. $17,090.00 favorable 1,026 units 939 units $1.859 11 10,019 $20,539 $14.33 per hour 4.5 4,835.85 $73,747 $1,046,000 $28.00 per standard labor hour $135,404
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:The following data is given for the Bahia Company:
Budgeted production
Actual production
Materials:
Standard price per pound
Standard pounds per completed unit
Actual pounds purchased and used in production
Actual price paid for materials
Labor:
Standard hourly labor rate
Standard hours allowed per completed unit
Actual labor hours worked
Actual total labor costs.
Overhead:
Actual and budgeted fixed overhead
Standard variable overhead rate
Actual variable overhead costs
Overhead is applied on standard labor hours.
The variable factory overhead controllable variance is
a. $88,695.91 unfavorable.
b. $88,695.91 favorable
Oc. $17,090.00 unfavorable
d. $17,090.00 favorable
1,026 units
939 units
$1.859
11
10,019
$20,539
$14.33 per hour
4.5
4,835.85
$73,747
$1,046,000
$28.00 per standard labor hour
$135,404
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