The Lopez Company uses standard costing in its manufacturing plant for auto parts. , the budgeted output level for the year is 4,000 units ,The standard machine-hours allowed per unit of output is 6 machine hours. the budgeted Variable manufacturing overhead rate is $9 per hour. The actual output produced was 4,400 units. The actual Variable manufacturing overhead costs were $245,000. The actual machine hours were 28,400.  The spending  variance for V.MOH is : Select one: a. 17,800 favorable  b. 10,600 Favorable  c. 17,800 unfavorable  d. 16,000 unfavorable  e. 10,600 unfavorable

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A: The objective of the question is to calculate the total flexible budget variance for Bedou-Kwaku…

Q: Brookman, Inc. manufactures lead crystal glasses. The standard direct labor time is 0.5 hour per​…

A: Standard hours means standard hours for actual output  = 6800×0.5 =3400 hours

Q: Fanning Manufacturing Company set its standard variable manufacturing cost at $26 per unit of…

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Q: Speedy Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to…

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Q: Zebro Ltd presents the following information for a month: Budgeted production of product P = 200…

A: Standard costing is a method in which by making comparison between the actual cost incurred with…

Q: Chambers, Inc. uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing…

A: Variable manufacturing overhead per unit = Total Variable manufacturing overhead / total units =…

Q: Humphrey Manufacturing has the following standards for its production department:   Overhead is…

A: Overhead efficiency variance = (standard direct labor hours  -actual direct labor hours) x  Standard…

Q: Safeflower Systems allocates manufacturing overhead based on machine hours. Each connector should…

A: Variable cost Depends upon the production of goods or services that is increment of sales increases…

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Q: Radiant Systems allocates manufacturing overhead based on machine hours. Each connector should…

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Q: Bondi Corporation makes automotive engines. For the most recent month, budgeted production was 3,500…

A: Answer Variable overhead rate variance =Actual hours worked×(Standard overhead rate-Actual overhead…

Q: Zulu reported $60,000 of income for the year by using absorption costing. The company had no…

A: Income under variable costing method is $ 52,500/.Explanation:

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Q: The following information is provided for Dexter, Inc.: Standard direct labor wage rate: $10/hour…

A: Formula: Direct labor rate variance = ( Standard rate - Actual rate ) x Actual hours

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Q: Moneka reported $65,000 of income for the year by using absorption costing. The company had no…

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A: (1) Calculation of Predetermined variable and fixed manufacturing overhead rates for the…

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Q: Shorts, Inc. produces small engines. For last year's operations, the following data were gathered:…

A: Variable overhead spending variance = (standard overhead rate per hour- actual overhead  rate per…

Q: Feagin  Company’s  actual  variable  overhead  was  $73,000.  Actual  direct labor hours  were…

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A: Variable cost Depends upon the production of goods or services that is increment of sales increases…

Q: Novak Company uses a flexible budget for manufacturing overhead based on direct labor hours.…

A: Flexible budget:Flexible budget refers to the dynamic budgeting model that allows for changes in…

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.