pedDokintencesExercise 17-20 (Algo) Prorating Variable Overhead Cost Variances (LO 17-1)Volte Corporation produces small electric appliances. The following information is available for the most recentperiod of operations:Standard variable overhead rateActual outputActual direct labor-hours usedStandard direct labor-hoursActual direct labor cost incurredStandard direct labor-hour rateActual variable overhead incurredActual units sold20,140 units.Volte never has any work-in-process inventories and began the year with no finished goods inventory.$ 2.55 per direct labor-hour25,150 units34,6001.5 per unitRequired:a. and b. What was the variable overhead price variance and the variable overhead efficiency variance for theperiod?Req A and B.$ 829,000c. Assume that Volte writes off all variances to Cost of Goods Sold. Prepare the entries Volte would make torecord and close out the variances.d. Assume that volte prorates all variances to appropriate accounts. Prepare the entries Volte would make torecord and close out the variances.Req C$24$ 95,000Complete this question by entering your answers in the tabs below.Req D

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Description: pedDokintencesExercise 17-20 (Algo) Prorating Variable Overhead Cost Variances (LO 17-1)Volte Corporation produces small electric appliances. The following information is available for the most recentperiod of operations:Standard variable overhead r

Variable Overhead Efficiency Variance :— It is difference of standard variable overhead and actual…

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Volte Corporation produces small electric appliances. The following information is available for the most recent period of operations: $ 2.55 per direct labor-hour 25,150 units 34,600 1.5 per unit Standard variable overhead rate Actual output Actual direct labor-hours used. Standard direct labor-hours Actual direct labor cost incurred Standard direct labor-hour rate Actual variable overhead incurred Actual units sold 20,140 units Volte never has any work-in-process inventories and began the year with no finished goods inventory. $ 829,000 $ 24 $ 95,000 Required: a. and b. What was the variable overhead price variance and the variable overhead efficiency variance for the period? c. Assume that Volte writes off all variances to Cost of Goods Sold. Prepare the entries Volte would make to record and close out the variances. d. Assume that Volte prorates all variances to appropriate accounts. Prepare the entries Volte would make to record and close out the variances.

Volte Corporation produces small electric appliances. The following information is available for the most recent period of operations: $ 2.55 per direct labor-hour 25,150 units 34,600 1.5 per unit Standard variable overhead rate Actual output Actual direct labor-hours used. Standard direct labor-hours Actual direct labor cost incurred Standard direct labor-hour rate Actual variable overhead incurred Actual units sold 20,140 units Volte never has any work-in-process inventories and began the year with no finished goods inventory. $ 829,000 $ 24 $ 95,000 Required: a. and b. What was the variable overhead price variance and the variable overhead efficiency variance for the period? c. Assume that Volte writes off all variances to Cost of Goods Sold. Prepare the entries Volte would make to record and close out the variances. d. Assume that Volte prorates all variances to appropriate accounts. Prepare the entries Volte would make to record and close out the variances.

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Concept explainers

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.

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ped
Dok
int
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Exercise 17-20 (Algo) Prorating Variable Overhead Cost Variances (LO 17-1)
Volte Corporation produces small electric appliances. The following information is available for the most recent
period of operations:
Standard variable overhead rate
Actual output
Actual direct labor-hours used
Standard direct labor-hours
Actual direct labor cost incurred
Standard direct labor-hour rate
Actual variable overhead incurred
Actual units sold
20,140 units.
Volte never has any work-in-process inventories and began the year with no finished goods inventory.
$ 2.55 per direct labor-hour
25,150 units
34,600
1.5 per unit
Required:
a. and b. What was the variable overhead price variance and the variable overhead efficiency variance for the
period?
Req A and B.
$ 829,000
c. Assume that Volte writes off all variances to Cost of Goods Sold. Prepare the entries Volte would make to
record and close out the variances.
d. Assume that volte prorates all variances to appropriate accounts. Prepare the entries Volte would make to
record and close out the variances.
Req C
$24
$ 95,000
Complete this question by entering your answers in the tabs below.
Req D

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