The following information is available for Sheffield’s Hot Dogs: Actual production 11,820 packages Budgeted production 12,500 packages Standard direct labor hours 1.55 direct labor hours per package Actual direct labor hours 19,372 Standard variable overhead rate $3 per direct labor hour Actual variable overhead costs $51,926 Calculate the variable overhead spending and efficiency variances. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Variable overhead spending variance $ Not ApplicableFavorableUnfavorable Variable overhead efficiency variance $ Not ApplicableUnfavorableFavorable Click if you would like to Show Work for this question: Open Show Work
The following information is available for Sheffield’s Hot Dogs: Actual production 11,820 packages Budgeted production 12,500 packages Standard direct labor hours 1.55 direct labor hours per package Actual direct labor hours 19,372 Standard variable overhead rate $3 per direct labor hour Actual variable overhead costs $51,926 Calculate the variable overhead spending and efficiency variances. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Variable overhead spending variance $ Not ApplicableFavorableUnfavorable Variable overhead efficiency variance $ Not ApplicableUnfavorableFavorable Click if you would like to Show Work for this question: Open Show Work
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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The following information is available for Sheffield’s Hot Dogs:
Calculate the variable overhead spending and efficiency variances. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)
| Actual production | 11,820 | packages | |
| Budgeted production | 12,500 | packages | |
| Standard direct labor hours | 1.55 | direct labor hours per package | |
| Actual direct labor hours | 19,372 | ||
| Standard variable |
$3 | per direct labor hour | |
| Actual variable overhead costs | $51,926 |
Calculate the variable overhead spending and efficiency variances. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)
| Variable overhead spending variance | $
|
Not ApplicableFavorableUnfavorable
|
|
| Variable overhead efficiency variance | $
|
Not ApplicableUnfavorableFavorable
|
| Click if you would like to Show Work for this question: |
Open Show Work
|
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