O$1,400 favorable.$2,000 favorable.$600 unfavorable.$1,400 unfavorable.$400 favorable. The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factoryoverhead cost to outputs:Actual total factory overhead cost incurredActual fixed overhead cost incurredBudgeted fixed overhead costActual machine hours5,000Standard machine hours allowed for the units manufactured4,800Denominator volume-machine hours5,500Standard variable overhead rate per machine hour$ 3.00Under a two-variance breakdown (decomposition) of the total factory overhead variance, the fixed overhead production volume variance is:Multiple Choice$ 24,000$ 10,000$ 11,000$1,400 favorable

Name: O$1,400 favorable.$2,000 favorable.$600 unfavorable.$1,400 unfavorabl
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Description: O$1,400 favorable.$2,000 favorable.$600 unfavorable.$1,400 unfavorable.$400 favorable. The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factoryoverhead cost to outputs:Act

The production volume variance is the same in a two-variance decomposition, a three-variance…

Business

Accounting

The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factory overhead cost to outputs: Actual total factory overhead cost incurred Actual fixed overhead cost incurred Budgeted fixed overhead cost Actual machine hours. Multiple Choice $ 24,000 $ 10,000 Standard machine hours allowed for the units manufactured Denominator volume-machine hours Standard variable overhead rate per machine hour Under a two-variance breakdown (decomposition) of the total factory overhead variance, the fixed overhead production volume variance is $1,400 favorable $ 11,000 5,000 4,800 5,500 $ 3.00

The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factory overhead cost to outputs: Actual total factory overhead cost incurred Actual fixed overhead cost incurred Budgeted fixed overhead cost Actual machine hours. Multiple Choice $ 24,000 $ 10,000 Standard machine hours allowed for the units manufactured Denominator volume-machine hours Standard variable overhead rate per machine hour Under a two-variance breakdown (decomposition) of the total factory overhead variance, the fixed overhead production volume variance is $1,400 favorable $ 11,000 5,000 4,800 5,500 $ 3.00

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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Subject:- Accounting
Compute the net overhead variance (indicate over-or underapplied manufacturing overhead)
The records of Heritage Home Supplies show the following for July: Standard direct labor-hours allowed per unit of output 4 Standard variable overhead rate per standard direct labor-hour $ 44 Good units produced 3,800 Actual direct labor-hours worked 14,675 Actual total direct labor cost $ 537,200 Direct labor efficiency variance $ 19,530 F Actual variable overhead $ 645,700 Required: Compute the direct labor and variable overhead price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct labor: Price variance Efficiency variance Variable overhead: Price variance Efficiency variance need help
The records of Heritage Home Supplies show the following for July: Standard direct labor-hours allowed per unit of output Standard variable overhead rate per standard direct labor-hour Good units produced Actual direct labor-hours worked Actual total direct labor cost Direct labor efficiency variance Actual variable overhead Required: Compute the direct labor and variable overhead price and efficiency variances. $ 34 3,600 13,925 $ 510,200 $ 17,670 F $ 473,450 Note: Do not round Intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct labor: Price variance Efficiency variance Variable overhead: Price variance Efficiency variance
The standard costs and actual costs for factory overhead for the manufacture of 2,800 units of actual production are as follows: Line Item DescriptionValueFixed overhead (based on 10,000 hours)3 hours per unit at $0.71 per hourVariable overhead3 hours per unit at $1.98 per hour Actual Costs Total variable cost, $18,200 Total fixed cost, $8,200 The fixed factory overhead volume variance is Group of answer choices $1,136 unfavorable $909 unfavorable $909 favorable $0
Happy Valley Pet Products uses a standard costing system that applies overhead to products based on standard direct labour-hours allowed for actual output of the period. During the recent year, the following data were collected: Total budgeted fixed overhead cost for the year Budgeted standard direct labour-hours Actual fixed overhead cost for the year Actual direct labour-hours Standard direct labour-hours allowed for the actual output $63,450 $60,950 14,100 15,300 12,600 Required. 1. Compute the fixed portion of the predetermined overhead rate for the year. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH 2. Compute the fixed overhead budget and volume variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Fixed overhead budget variance Fixed overhead volume variance
Example: To continue the example, assume XYZ Company incurred $180,000 of manufacturing expenses and that actual machine hours were 25,000. 1. Calculate the actual overhead rate based on machine hours. 2. Assume the variance is not material to XYZ Company. What journal entry would be made? 3. Assume the variance is material and that the applied overhead included in the ending balances in the work-in-process, finished goods, and cost of goods sold account is $50,000, $100,000, and $350,000, respectively. What amount of variance should be allocated to cost of goods sold?
Subject: acounting
The variable overhead efficiency variance for April was
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The standard costs and actual costs for factory overhead for the manufacture of 2,700 units of actual production are as follows: Fixed overhead (based on 10,000 hours) Variable overhead Actual Costs Total variable cost, $17,800 Total fixed cost, $8,200 The total factory overhead cost variance is Oa. $1,600 unfavorable Ob. $2,930 favorable Oc. $2,930 unfavorable Od. $4,260 favorable Standard Costs 3 hours per unit at $0.70 per hour 3 hours per unit at $2.00 per hour
Following data is available from the accounting records and reports of the Bell Manufacturing Company. Estimated Factory Overhead Estimated Direct Labor Hours Further analysis indicates that. 1/3 of the rate is Variable cost oriented During the year, they worked 95,000 Direct Labor Hour Factory Overhead Required: Rs. 540,000 90,000 Rs. 835,000 1. The Overhead rate per unit 2. Spending variance 3. Idle Capacity Variance 4. Overall Variance 5. Record Variances