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 i Standard direct labor-hour rate Actual variable overhead incurred Actual units sold 20,280 units. Volte never has any work-in-process inventories and began the year with no finished goods inventory. Req A and B $ 2.60 per direct labor-hour 25,300 units 34,700 1.5 per unit 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. Complete this question by entering your answers in the tabs below. Reg D $ 839,000 Req C What was the variable overhead price variance and the variable overhead efficiency variance for the period? Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Variable overhead price variance Variatile overhead efficiency variance $26 $ 97,500 and Reg 0 >
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 i Standard direct labor-hour rate Actual variable overhead incurred Actual units sold 20,280 units. Volte never has any work-in-process inventories and began the year with no finished goods inventory. Req A and B $ 2.60 per direct labor-hour 25,300 units 34,700 1.5 per unit 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. Complete this question by entering your answers in the tabs below. Reg D $ 839,000 Req C What was the variable overhead price variance and the variable overhead efficiency variance for the period? Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Variable overhead price variance Variatile overhead efficiency variance $26 $ 97,500 and Reg 0 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text: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
$ 839,000
Actual direct labor cost incurred i
Standard direct labor-hour rate:
Actual variable overhead incurred
Actual units sold
$ 26
97,500
$
20,280 units.
Volte never has any work-in-process inventories and began the year with no finished goods inventory.
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.
Complete this question by entering your answers in the tabs below.
Req A and B
$ 2.60 per direct labor-hour
25,300 units
34,700
1.5 per unit
Reg D
Req C
What was the variable overhead price variance and the variable overhead efficiency variance for the period?
Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not
select either option.
Variable overhead price variance
Variatile overhead efficiency variance
and
Req>
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education