Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Sedona Company set the following standard costs for one unit of its product for this year. Direct material (15 pounds @ $3.40 per pound) Direct labor (10 hours@ $9.70 per DLH) Variable overhead (10 hours @ $4.90 per DLH) Fixed overhead (10 hours @ $2.00 per DLH) Standard cost per unit $ 51.00 97.00 49.00 20.00 $ 217.00 The $6.90 ($4.90 + $2.00) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of units, which is 70% of the factory's capacity of 59,000 units per month. The following monthly flexible budget infor
Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Sedona Company set the following standard costs for one unit of its product for this year. Direct material (15 pounds @ $3.40 per pound) Direct labor (10 hours@ $9.70 per DLH) Variable overhead (10 hours @ $4.90 per DLH) Fixed overhead (10 hours @ $2.00 per DLH) Standard cost per unit $ 51.00 97.00 49.00 20.00 $ 217.00 The $6.90 ($4.90 + $2.00) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of units, which is 70% of the factory's capacity of 59,000 units per month. The following monthly flexible budget infor
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Use the following information for the Exercises below. (Algo)
[The following information applies to the questions displayed below.]
Sedona Company set the following standard costs for one unit of its product for this year.
Direct material (15 pounds @ $3.40 per pound)
Direct labor (10 hours@ $9.70 per DLH)
Variable overhead (10 hours @ $4.90 per DLH)
Fixed overhead (10 hours @ $2.00 per DLH)
Standard cost per unit
The $6.90 ($4.90 + $2.00) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 41,300
units, which is 70% of the factory's capacity of 59,000 units per month. The following monthly flexible budget information
is available.
Flexible Budget
Budgeted production (units)
Budgeted direct labor (standard hours)
Budgeted overhead
Variable overhead
Fixed overhead
Total overhead
Actual variable overhead
Actual fixed overhead
Actual total overhead
Show Transcribed Text
$ 1,816,000
899,050
$ 2,715,050
AH = Actual Hours
SH= Standard Hours
AVR = Actual Variable Rate
SVR Standard Variable Rate
$ 1,879,150
826,000
$ 2,705,150
During the current month, the company operated at 65% of capacity, direct labor of 365,000 hours were used, and the
following actual overhead costs were incurred.
Exercise 21-28A (Algo) Detailed overhead variances LO P5
1. Compute the variable overhead spending and efficiency variances.
2. Compute the fixed overhead spending and volume variances.
3. Compute the controllable variance.
Operating Levels (% of capacity)
65%
70%
75%
38,350
383,500
44,250
442,500
Complete this question by entering your answers in the tabs below.
$ 51.00
97.00
49.00
20.00
$ 217.00
Flexible Budget
Ć
41,300
413,000
$ 2,023,700
826,000
$ 2,849,700 $ 2,994,250
$ 2,168,250
826,000
Required 1 Required 2 Required 3
Compute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rat
per unit" to 2 decimal places.)
Actual Variable OH Cost
Standard Cost (VOH applied)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4f532a2d-41c4-4378-bc40-36a341559f3a%2Fcd8148c5-4578-4ce6-9cd5-7008688441b4%2Faig1sgg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Use the following information for the Exercises below. (Algo)
[The following information applies to the questions displayed below.]
Sedona Company set the following standard costs for one unit of its product for this year.
Direct material (15 pounds @ $3.40 per pound)
Direct labor (10 hours@ $9.70 per DLH)
Variable overhead (10 hours @ $4.90 per DLH)
Fixed overhead (10 hours @ $2.00 per DLH)
Standard cost per unit
The $6.90 ($4.90 + $2.00) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 41,300
units, which is 70% of the factory's capacity of 59,000 units per month. The following monthly flexible budget information
is available.
Flexible Budget
Budgeted production (units)
Budgeted direct labor (standard hours)
Budgeted overhead
Variable overhead
Fixed overhead
Total overhead
Actual variable overhead
Actual fixed overhead
Actual total overhead
Show Transcribed Text
$ 1,816,000
899,050
$ 2,715,050
AH = Actual Hours
SH= Standard Hours
AVR = Actual Variable Rate
SVR Standard Variable Rate
$ 1,879,150
826,000
$ 2,705,150
During the current month, the company operated at 65% of capacity, direct labor of 365,000 hours were used, and the
following actual overhead costs were incurred.
Exercise 21-28A (Algo) Detailed overhead variances LO P5
1. Compute the variable overhead spending and efficiency variances.
2. Compute the fixed overhead spending and volume variances.
3. Compute the controllable variance.
Operating Levels (% of capacity)
65%
70%
75%
38,350
383,500
44,250
442,500
Complete this question by entering your answers in the tabs below.
$ 51.00
97.00
49.00
20.00
$ 217.00
Flexible Budget
Ć
41,300
413,000
$ 2,023,700
826,000
$ 2,849,700 $ 2,994,250
$ 2,168,250
826,000
Required 1 Required 2 Required 3
Compute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rat
per unit" to 2 decimal places.)
Actual Variable OH Cost
Standard Cost (VOH applied)
Transcribed Image Text:Required 1 Required 2
Required 3
Compute the fixed overhead spending and volume variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per unit" to 2
decimal places.)
Actual Fixed OH cost
Show Transcribed Text
Required 1 Required 2
Fixed OH (Fixed Budgeted)
Controllable variance
Required 3
Standard Cost (FOH applied)
Compute the controllable variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)
Controllable Variance
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