[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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Question
Please explain proper steps by Step and Do Not Give Solution In Image Format ? And Fast Answering Please ?
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0a0d09e1-1dd0-4be7-9867-3de7f07d39b9%2F7be10c60-7349-4f6b-ac99-0081aacee40c%2Ftm9djc_processed.jpeg&w=3840&q=75)
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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VIEWStep 3: Computation of fixed overhead spending, volume variance and total fixed overhead cost variance
VIEWStep 4: Computation of controllable variance
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