The variable overhead efficiency variance for April was Use the following information to answer items #31-#34:Standard Company hasdeveloped standard manufacturing overhead costs based on a capacity of180,000 direct labor-hours (DLHS) as follows:Standard overhead costs per unit:Variable portion (2 DLH @ P3.00/DLH P6.00Fixed portion (2 DLH @ P5.00/DLH 10.00The following data pertain to operations in April:Actual Output80,000 unitsActual direct labor costP 644,000Actual direct labor hours worked165.000 DLHSP 518.000P 860.000Variable overhead cost incurredFixed overhead cost incurred< O O

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Description: The variable overhead efficiency variance for April was Use the following information to answer items #31-#34:Standard Company hasdeveloped standard manufacturing overhead costs based on a capacity of180,000 direct labor-hours (DLHS) as follows:Stand

Formula: Variable overhead efficiency variance = (Standard labor hours allowed for actual output -…

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Use the following information to answer items #31-#34:Standard Company has developed standard manufacturing overhead costs based on a capacity of 180,000 direct labor-hours (DLHS) as follows: Standard overhead costs per unit: Variable portion (2 DLH P3.00/DLH P6.0o0 Fixed portion (2 DLH @ P5.00/DLH 10.00 The following data pertain to operations in Aprit: Actual Output Actual direct labor cost Actual direct labor hours worked Variable overhead cost incurred Fixed overhead cost incurred 80.000 units P 644,000 165.000 DLHS P 518.000 P 860.000

Use the following information to answer items #31-#34:Standard Company has developed standard manufacturing overhead costs based on a capacity of 180,000 direct labor-hours (DLHS) as follows: Standard overhead costs per unit: Variable portion (2 DLH P3.00/DLH P6.0o0 Fixed portion (2 DLH @ P5.00/DLH 10.00 The following data pertain to operations in Aprit: Actual Output Actual direct labor cost Actual direct labor hours worked Variable overhead cost incurred Fixed overhead cost incurred 80.000 units P 644,000 165.000 DLHS P 518.000 P 860.000

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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3 What is the variable manufacturing overhead efficiency variance? Michelle Inc. uses a level 4 variance analysis of its manufacturing overhead costs and has the following results for April. A. Budgeted direct labour-hours per unit is used to allocate variable manufacturing overhead. Fixed overhead is allocated on a per unit basis. B. Budgeted amounts for April are: Direct labour-hours Variable labour-hour overhead rate Fixed manufacturing overhead Budgeted output (denominator level output) C. Actual amounts for April are: Variable manufacturing overhead Fixed manufacturing overhead Direct labour-hours Actual output A) $181,200 favourable B) $80,000 favourable C) $101,200 unfavourable. D) $84,000 unfavourable OE) $101,200 favourable 0.30/unit $20.00/DLH $630,000 30,000 units $340,000 $590,000 16,000 hours 40,000 units
Draw a graph showing budgeted and applied fixed overhead, and show an unfavorable (or positive) volume variance on the graph.
Required: 1. Compute the factory overhead flexible-budget variance, the factory overhead spending variance, and the efficiency variance for variable factory overhead for March and state whether each variance is favorable (F) or unfavorable (U). 2. Provide the appropriate journal entry to record the variable overhead spending variance and a second entry to record the variable overhead efficiency variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs.
Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,030 hours each month to produce 2,060 sets of covers. The standard costs associated with this level of production are: Per Set Total of Covers Direct materials $39,140 $ 19.00 Direct labor $ 9,270 4.50 Variable manufacturing overhead (based on direct labor-hours) $ 3,502 1.70 $25.20
1.What is the labor rate variance ( indicate the effect of each variance by selecting "f" for favorable, U for unfavorable, and None for no effect and round your final answer to the nearest whole number) 2. What is the variable overhead efficiency variance ? ( indicate the effect of each variance by selecting "f" for favorable, U for unfavorable, and None for no effect and round your final answer to the nearest whole number) 3. what is the variable overhead rate variance?
The variable overhead spending variance is most effective in measuring: O how well overhead spending matches the targets set in the original budget at the beginning of the year. O the efficiency with which the activity base was utilized in production. O the excessive use of overhead resources. O the utilization of plant facilities.
Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last month. For labor cost in the lab, Compute a labor rate variance and a labor efficiency variance Compute the variable overhead rate and efficiency variances.
Dirickson Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Standard Quantity or Hours per Unit of Output Inputs Standard Price or Rate $ 9.40 per ounce $ 18.00 per hour $ 5.30 per hour Direct materials 7.6 ounces Direct labor 0.10 hours Variable manufacturing overhead 0.10 hours The company has reported the following actual results for the product for July: Actual output 7,600 units Raw materials purchased 63,000 ounces Actual cost of raw materials purchased $ 541,800 Raw materials used in production 57,750 ounces 820 hours Actual direct labor-hours $ 16,072 $ 4,592 Actual direct labor cost Actual variable overhead cost The variable overhead efficiency variance for the month is closest to:
The labor efficiency variance is the difference between the actual quantity of hours at the standard rate and the standard direct labor hours at the standard rate. A. True B. False
Variable factory overhead is applied on the basis of standard direct labor hours. If, for a given period, the direct labor efficiency variance is unfavorable, the variable factory overhead efficiency variance will be favorable Zero unfavorable the same amount as the labor efficiency variance
What is the direct materials price variance for January?
For the month of April, compute the variances, indicating whether it is favorable (F) or unfavorable (U) Q.Variable manufacturing overhead efficiency variance