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Total overhead variance (c) eTextbook and Media List of Accounts 4000 i Favorable LA Prepare an income statement for management. (Ignore income taxes.) (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 52.) VAUGHN CORPORATION Income Statement Attempts: 1 of 2 used VUOD >

Total overhead variance (c) eTextbook and Media List of Accounts 4000 i Favorable LA Prepare an income statement for management. (Ignore income taxes.) (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 52.) VAUGHN CORPORATION Income Statement Attempts: 1 of 2 used VUOD >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Income Statement - including favorable and unfavorable

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Vaughn Corporation accumulates the following data relative to jobs started and finished during the month of June 2025. Raw materials unit cost Raw materials units Direct labor payroll Direct labor hours Costs and Production Data Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted fixed overhead for June Variable overhead rate per machine hour Fixed overhead rate per machine hour (a) (1) (2) Your answer is partially correct. Total materials variance Materials price variance Materials quantity variance Total labor variance Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $487,000. Selling and administrative expenses were $39,300. Assume that the amount of raw materials purchased equaled the amount used. Labor price variance Labor quantity variance $ Compute all of the variances for (1) direct materials and (2) direct labor. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 52.) $ $ Actual $ $2.10 $ 11,400 $169,860 14,900 $210,320 1940 1140 800 !!! 4180 Standard $2.00 11,000 $165,680 15,200 7450 $214,320 43,500 $73,950 4000 $3 $1.70 Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Favorable
Transcribed Image Text:Vaughn Corporation accumulates the following data relative to jobs started and finished during the month of June 2025. Raw materials unit cost Raw materials units Direct labor payroll Direct labor hours Costs and Production Data Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted fixed overhead for June Variable overhead rate per machine hour Fixed overhead rate per machine hour (a) (1) (2) Your answer is partially correct. Total materials variance Materials price variance Materials quantity variance Total labor variance Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $487,000. Selling and administrative expenses were $39,300. Assume that the amount of raw materials purchased equaled the amount used. Labor price variance Labor quantity variance $ Compute all of the variances for (1) direct materials and (2) direct labor. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 52.) $ $ Actual $ $2.10 $ 11,400 $169,860 14,900 $210,320 1940 1140 800 !!! 4180 Standard $2.00 11,000 $165,680 15,200 7450 $214,320 43,500 $73,950 4000 $3 $1.70 Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Favorable
Compute the total overhead variance. Total overhead variance (c) eTextbook and Media List of Accounts 4000 Favorable $ Prepare an income statement for management. (Ignore income taxes.) (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 52.) Attempts: 1 of 2 used VAUGHN CORPORATION Income Statement > > > > > >
Transcribed Image Text:Compute the total overhead variance. Total overhead variance (c) eTextbook and Media List of Accounts 4000 Favorable $ Prepare an income statement for management. (Ignore income taxes.) (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 52.) Attempts: 1 of 2 used VAUGHN CORPORATION Income Statement > > > > > >
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