Warner Manufacturing has established the following master flexible budget for the current year:Production in UnitsVariable expenses:Raw materialsDirect labourManufacturing overheadTotal variable expensesFixed expenses:Manufacturing overheadSelling and administrativeTotal fixed expensesTotal expenses80,000$152,000160,000120,000$432,000$300,000191,000$491,000$923,000100,000b) Actual data for the year were as follows:Actual variable manufacturing overhead costActual fixed manufacturing overhead costActual machine hours incurredUnits produced190,000200,000150,000$540,000$300,000191,000$491,000$1,031,000120,000228,000240,000180,000$648,000$300,000191,000$491,000$1,139,000Manufacturing overhead is applied on the basis of machine hours. At standard, each unit ofproduct requires one machine hour to complete.Required:a) The denominator activity level is 100,000 units. What are the predetermined variable andfixed manufacturing overhead rates?$159,500$306,000110,000100,000Compute the variable overhead spending and efficiency variances and the fixed overhead budgetand volume variances for the year.

In budgeting or management accounting, variance analysis is the examination of variations between…

Warner Manufacturing has established the following master flexible budget for the current year: Production in Units Variable expenses: Raw materials Direct labour Manufacturing overhead Total variable expenses Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Total expenses 80,000 $152,000 160,000 120,000 $432,000 $300,000 191,000 $491,000 $923,000 100,000 190,000 200,000 150,000 $540,000 b) Actual data for the year were as follows: Actual variable manufacturing overhead cost Actual fixed manufacturing overhead cost Actual machine hours incurred Units produced $300,000 191,000 $491,000 $1,031,000 120,000 228,000 240,000 180,000 $648,000 $300,000 191,000 $491,000 $1,139,000 Manufacturing overhead is applied on the basis of machine hours. At standard, each unit of product requires one machine hour to complete. Required: a) The denominator activity level is 100,000 units. What are the predetermined variable and fixed manufacturing overhead rates? $159,500 $306,000 110,000 100,000 Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances for the year.

Warner Manufacturing has established the following master flexible budget for the current year: Production in Units Variable expenses: Raw materials Direct labour Manufacturing overhead Total variable expenses Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Total expenses 80,000 $152,000 160,000 120,000 $432,000 $300,000 191,000 $491,000 $923,000 100,000 190,000 200,000 150,000 $540,000 b) Actual data for the year were as follows: Actual variable manufacturing overhead cost Actual fixed manufacturing overhead cost Actual machine hours incurred Units produced $300,000 191,000 $491,000 $1,031,000 120,000 228,000 240,000 180,000 $648,000 $300,000 191,000 $491,000 $1,139,000 Manufacturing overhead is applied on the basis of machine hours. At standard, each unit of product requires one machine hour to complete. Required: a) The denominator activity level is 100,000 units. What are the predetermined variable and fixed manufacturing overhead rates? $159,500 $306,000 110,000 100,000 Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances for the year.

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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