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The following information relates to Johnson, Inc.'s overhead costs for the month: (Click the icon to view the information.) Requirements 1. 2. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Explain why the variances are favorable or unfavorable. Requirement 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Begin by selecting the formulas needed to compute the variable overhead (VOH) and fixed overhead (FOH) variances, and then compute each variance amount. Requirement 2. Explain why the variances are favorable or unfavorable. =VOH cost variance =VOH efficiency variance FOH cost variance = FOH volume variance = Data table The variable overhead cost variance is The variable overhead efficiency variance is because Johnson actually spent than budgeted. The fixed overhead cost variance is The fixed overhead volume variance is because the actual hours used was because Johnson actually spent because Johnson allocated than budgeted. than budgeted for fixed overhead. overhead to jobs than the budgeted fixed overhead amount. Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units $ 7,800 $ 3,900 1,300 hours 5,200 units Johnson allocates manufacturing overhead to production based on standard direct labor hours. Last month, Johnson reported the following actual results: actual variable overhead, $10,300; actual fixed overhead, $2,830; actual production of 7,400 units at 0.30 direct labor hours per unit. The standard direct labor time is 0.25 direct labor hours per unit (1,300 static direct labor hours/5,200 static units). Print Done

The following information relates to Johnson, Inc.'s overhead costs for the month: (Click the icon to view the information.) Requirements 1. 2. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Explain why the variances are favorable or unfavorable. Requirement 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Begin by selecting the formulas needed to compute the variable overhead (VOH) and fixed overhead (FOH) variances, and then compute each variance amount. Requirement 2. Explain why the variances are favorable or unfavorable. =VOH cost variance =VOH efficiency variance FOH cost variance = FOH volume variance = Data table The variable overhead cost variance is The variable overhead efficiency variance is because Johnson actually spent than budgeted. The fixed overhead cost variance is The fixed overhead volume variance is because the actual hours used was because Johnson actually spent because Johnson allocated than budgeted. than budgeted for fixed overhead. overhead to jobs than the budgeted fixed overhead amount. Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units $ 7,800 $ 3,900 1,300 hours 5,200 units Johnson allocates manufacturing overhead to production based on standard direct labor hours. Last month, Johnson reported the following actual results: actual variable overhead, $10,300; actual fixed overhead, $2,830; actual production of 7,400 units at 0.30 direct labor hours per unit. The standard direct labor time is 0.25 direct labor hours per unit (1,300 static direct labor hours/5,200 static units). Print Done

FINANCIAL ACCOUNTING
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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The following information relates to Johnson, Inc.'s overhead costs for the month: (Click the icon to view the information.) Requirements 1. 2. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Explain why the variances are favorable or unfavorable. Requirement 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Begin by selecting the formulas needed to compute the variable overhead (VOH) and fixed overhead (FOH) variances, and then compute each variance amount. Requirement 2. Explain why the variances are favorable or unfavorable. =VOH cost variance =VOH efficiency variance FOH cost variance = FOH volume variance = Data table The variable overhead cost variance is The variable overhead efficiency variance is because Johnson actually spent than budgeted. The fixed overhead cost variance is The fixed overhead volume variance is because the actual hours used was because Johnson actually spent because Johnson allocated than budgeted. than budgeted for fixed overhead. overhead to jobs than the budgeted fixed overhead amount. Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units $ 7,800 $ 3,900 1,300 hours 5,200 units Johnson allocates manufacturing overhead to production based on standard direct labor hours. Last month, Johnson reported the following actual results: actual variable overhead, $10,300; actual fixed overhead, $2,830; actual production of 7,400 units at 0.30 direct labor hours per unit. The standard direct labor time is 0.25 direct labor hours per unit (1,300 static direct labor hours/5,200 static units). Print Done
Transcribed Image Text:The following information relates to Johnson, Inc.'s overhead costs for the month: (Click the icon to view the information.) Requirements 1. 2. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Explain why the variances are favorable or unfavorable. Requirement 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Begin by selecting the formulas needed to compute the variable overhead (VOH) and fixed overhead (FOH) variances, and then compute each variance amount. Requirement 2. Explain why the variances are favorable or unfavorable. =VOH cost variance =VOH efficiency variance FOH cost variance = FOH volume variance = Data table The variable overhead cost variance is The variable overhead efficiency variance is because Johnson actually spent than budgeted. The fixed overhead cost variance is The fixed overhead volume variance is because the actual hours used was because Johnson actually spent because Johnson allocated than budgeted. than budgeted for fixed overhead. overhead to jobs than the budgeted fixed overhead amount. Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units $ 7,800 $ 3,900 1,300 hours 5,200 units Johnson allocates manufacturing overhead to production based on standard direct labor hours. Last month, Johnson reported the following actual results: actual variable overhead, $10,300; actual fixed overhead, $2,830; actual production of 7,400 units at 0.30 direct labor hours per unit. The standard direct labor time is 0.25 direct labor hours per unit (1,300 static direct labor hours/5,200 static units). Print Done
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