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[The following information applies to the questions displayed below.] Sedona Company set the following standard costs for one unit of its product for this year. Direct material (20 pounds $4.10 per pound) Direct labor (15 hours $6.00 per DLH) Variable overhead (10 hours @ $3.60 per DLH) Fixed overhead (10 hours $1.60 per DLR) Standard cost per unit The $5.20 ($3.60+ $1.60) tolal overhead rate per direct labor hour (DLH) is based on a predicted activity level of 46,200 units, which is 70% of the factory's capacity of 66,000 units per month. The following monthly flexible budget information is available. Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead Variable overhead Fixed overhead Total overhead Actual variable overhead Actual fixed overhead Actual total overhead- $ 1,501,000 784,200 $ 2,285,200 $ 82.00 90.00 36.00 16.00 $ 224.00 Operating Levels ($ of capacity) 658 70% 75 42,900 429,000 $ 1,544,400 739,200 46,200 462,000 $ 1,663,200 739,200 $ 1,782,000 739,200 $ 2,283,600 $ 2,402,400 $ 2,521,200 49,500 495,000 During the current month, the company operated at 65% of capacity, direct labor of 410,000 hours were used, and the following actual overhead costs were incurred.

[The following information applies to the questions displayed below.] Sedona Company set the following standard costs for one unit of its product for this year. Direct material (20 pounds $4.10 per pound) Direct labor (15 hours $6.00 per DLH) Variable overhead (10 hours @ $3.60 per DLH) Fixed overhead (10 hours $1.60 per DLR) Standard cost per unit The $5.20 ($3.60+ $1.60) tolal overhead rate per direct labor hour (DLH) is based on a predicted activity level of 46,200 units, which is 70% of the factory's capacity of 66,000 units per month. The following monthly flexible budget information is available. Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead Variable overhead Fixed overhead Total overhead Actual variable overhead Actual fixed overhead Actual total overhead- $ 1,501,000 784,200 $ 2,285,200 $ 82.00 90.00 36.00 16.00 $ 224.00 Operating Levels ($ of capacity) 658 70% 75 42,900 429,000 $ 1,544,400 739,200 46,200 462,000 $ 1,663,200 739,200 $ 1,782,000 739,200 $ 2,283,600 $ 2,402,400 $ 2,521,200 49,500 495,000 During the current month, the company operated at 65% of capacity, direct labor of 410,000 hours were used, and the following actual overhead costs were incurred.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Required 1 Required 2 Required 3 Compute the variable overhead spending and efficiency variances. (Indicate the effect each variance by selecting favorable, unfavorable, or no variance. Round "Rate per unit" to 2 decimal places.) AH wap your answers in the taos below. Actual Variable OH Cost O 410,000 $ 1,501,000 O Variable overhead spending vanance Variable overhead efficiency variance Total variable overhead cost variance AVR 3.00 Show Transcribed Text Actual Fixed OH cost Fixed overhead spending variance Fixed overhead volume variance Total fixed overhead cost variance Show Transcribed Text $ 25.000 Complete this question by entering your answers in the tabs below. Controllable variance AH 410.000 O O Variable overhead spending variance Fixed overhead spending variance Variable overhead efficiency variance $ 25,000 68,400 $43,400 Flexible Budget O X X $1,476,000 Required 3 Unfavorable Favorable Favorable Fixed OH (Fixed Budgeted) Required 1 Required 2 Required 3 Compute the fixed overhead spending and volume variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate p decimal places.) 0 Unfavorable 0 Unfavorable Unfavorable SVRO $ 3.00 < Required 2 c < Required 1 Answer is not complete. Complete this question by entering your answers in the tabs below. $68,400 Required 2 > Unfavorable Unfavorable Favorable Answer is not complete. Standard Cost (VOH applied) O K SH 429,000 Standard hours O Required 1 Required 2 Compute the controllable variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Controllable Variance O O O Required 3 > $ 1,544.400 Required 3> SVRO $ 3.600 Standard Cost (FOH applied) Standard fixed
Transcribed Image Text:Required 1 Required 2 Required 3 Compute the variable overhead spending and efficiency variances. (Indicate the effect each variance by selecting favorable, unfavorable, or no variance. Round "Rate per unit" to 2 decimal places.) AH wap your answers in the taos below. Actual Variable OH Cost O 410,000 $ 1,501,000 O Variable overhead spending vanance Variable overhead efficiency variance Total variable overhead cost variance AVR 3.00 Show Transcribed Text Actual Fixed OH cost Fixed overhead spending variance Fixed overhead volume variance Total fixed overhead cost variance Show Transcribed Text $ 25.000 Complete this question by entering your answers in the tabs below. Controllable variance AH 410.000 O O Variable overhead spending variance Fixed overhead spending variance Variable overhead efficiency variance $ 25,000 68,400 $43,400 Flexible Budget O X X $1,476,000 Required 3 Unfavorable Favorable Favorable Fixed OH (Fixed Budgeted) Required 1 Required 2 Required 3 Compute the fixed overhead spending and volume variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate p decimal places.) 0 Unfavorable 0 Unfavorable Unfavorable SVRO $ 3.00 < Required 2 c < Required 1 Answer is not complete. Complete this question by entering your answers in the tabs below. $68,400 Required 2 > Unfavorable Unfavorable Favorable Answer is not complete. Standard Cost (VOH applied) O K SH 429,000 Standard hours O Required 1 Required 2 Compute the controllable variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Controllable Variance O O O Required 3 > $ 1,544.400 Required 3> SVRO $ 3.600 Standard Cost (FOH applied) Standard fixed
Required information [The following information applies to the questions displayed below.] Sedona Company set the following standard costs for one unit of its product for this year. Direct material (20 pounds e $4.10 per pound) Direct labor (15 hours $6.00 per DLH) Variable overhead (10 hours @ $3.60 per DLH) Fixed overhead (10 hours $1.60 per DLH) Standard cost per unit The $5.20 ($3.60+ $1.60) tofal overhead rate per direct labor hour (DLH) is based on a predicted activity level of 46,200 units, which is 70% of the factory's capacity of 66,000 units per month. The following monthly flexible budget information is available. Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead Variable overhead Fixed overhead Total overhead Actual variable overhead Actual fixed overhead Actual total overhead AH Actual Hours SH- Standard Hours AVR Actual Variable Rate SVR Standard Variable Rate $ 1,501,000 784,200 $ 2,285,200 $ 82.00 90.00 36.00 16.00 $ 224.00 Operating Levels ( of capacity) 65% 70% 75% 42,900 429,000 46,200 462,000 $ 1,544,400 739,200 $ 2,283,600. $ 2,402,400 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances. 3. Compute the controllable variance. During the current month, the company operated at 65% of capacity, direct labor of 410,000 hours were used, and the following actual overhead costs were incurred. $ 1,663,200 739,200 49,500 495,000 $ 1,782,000 739,200 $ 2,521,200
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] Sedona Company set the following standard costs for one unit of its product for this year. Direct material (20 pounds e $4.10 per pound) Direct labor (15 hours $6.00 per DLH) Variable overhead (10 hours @ $3.60 per DLH) Fixed overhead (10 hours $1.60 per DLH) Standard cost per unit The $5.20 ($3.60+ $1.60) tofal overhead rate per direct labor hour (DLH) is based on a predicted activity level of 46,200 units, which is 70% of the factory's capacity of 66,000 units per month. The following monthly flexible budget information is available. Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead Variable overhead Fixed overhead Total overhead Actual variable overhead Actual fixed overhead Actual total overhead AH Actual Hours SH- Standard Hours AVR Actual Variable Rate SVR Standard Variable Rate $ 1,501,000 784,200 $ 2,285,200 $ 82.00 90.00 36.00 16.00 $ 224.00 Operating Levels ( of capacity) 65% 70% 75% 42,900 429,000 46,200 462,000 $ 1,544,400 739,200 $ 2,283,600. $ 2,402,400 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances. 3. Compute the controllable variance. During the current month, the company operated at 65% of capacity, direct labor of 410,000 hours were used, and the following actual overhead costs were incurred. $ 1,663,200 739,200 49,500 495,000 $ 1,782,000 739,200 $ 2,521,200
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