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:$ 3.20 per direct labor-hour27,100 units35,900Standard variable overhead rateActual outputActual direct labor-hours usedStandard direct labor-hours.Actual direct labor cost incurredStandard direct labor-hour rateActual variable overhead incurred.Actual units sold21,960 unitsVolte 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 thevariances.1.5 per unitd. Assume that Volte prorates all variances to appropriate accounts. Prepare the entries Volte would make to record and close out thevariances.Req A and B$959,000$ 50$ 127,500Complete this question by entering your answers in the tabs below.Req CReq DVariable overhead price varianceVariable overhead efficiency varianceWhat 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 notselect either option.

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

Answered: Wolte Corporation produces small…

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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Miniconjou Co. provides the following data for the most recently completed calendar year. Answer the following questions for the company based on the data below. DO NOT enter dollar signs or camas. Estimated total machine-hours 5,280 Estimated total fixed manufacturing overhead $33,000 Estimated variable manufacturing overhead per machine-hour $3.50 Actual total manufacturing overhead $47,800 Direct Materials used (all jobs) $17,160 Direct Labor cost (all jobs) $27,720 Actual machine hours (MHs) used (all jobs) 5,000 If total estimated plantwide MOH is $51,480, what is the plant wide POHR for the company based on machine hours? Round to 2 decimal places (cents).
Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 12,000 to 16,000 units. When it produces and sells 14,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $7.30 $ 4.30 $ 1.80 $5.30 $ 3.80 $ 2.80 $ 1.30 $ 0.80 Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 14,000 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 14,000 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 16,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 12,000 units? (For all requirements, do not…
Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($500,040 926,000 units) Parker Plastic had the following actual results for the past year: Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of Labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1.200,000 12,200,000 $7,320,000 324,000 $3,855,600 $1,300,000 $ 381,000 Required: Calculate Parker Plastic's direct labor rate and efficiency variances Direct Labor Rate Variance Direct Labor Efficiency Vince Standard Quantity 13 square foot 0.25 hour 0.25 hour Standard Price (Rate) $ 0.70 per square foot $ 12.20 per hour $ 1.40 per hour Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting…
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Ross Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Variable costs per unit: Direct materials $81 Fixed costs per year Direct labor $1,008,000 Fixed manufacturing overhead $2,520,000 Fixed selling and administrative $1,440,000 The company does not have any variable manufacturing overhead costs or variable selling and administrative costs. During its first year of operations, the company produced 36,000 units and sold 30,000 units. There was no ending work-in-process inventory. The company's only product is sold for $251 per unit. 9.1 What is the unit product cost under super-variable costing? 9.2 What is the net operating income under super-variable costing? 9.3 Assume that the company uses a variable costing system that assigns $28 of direct labor cost to each unit that is produced. How much higher or lower is variable costing income compared to that under super-variable costing? 9.4 Assume that the company…
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Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($378,000 ÷ 900,000 units) Parker Plastic had the following actual results for the past year: Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost Direct Labor Rate Variance Direct Labor Efficiency Variance IF TI 1,000,000 11,800,000 $ 8,260,000 $ Required: Calculate Parker Plastic's direct labor rate and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). F 245,000 2,891,000 $ 318,500 $ 355,000 Standard Quantity 12 square…
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A5
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 $…
Required information [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 (20 pounds @ $3.30 per pound) Direct labor (15 hours @ $6.00 per DLH) Variable overhead (15 hours @ $2.80 per DLH) Fixed overhead (15 hours @ $1.20 per DLH) Standard cost per unit The $4.00 ($2.80+ $1.20) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 43,500 units, which is 75% of the factory's capacity of 58,000 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 $ 66.00 90.00 42.00 18.00 $ 216.00 $1,624,000 866,000 $ 2,490,000 Operating Levels (% of capacity) 75% 70% 40,600 609,000 $ 1,705, 200 783,000…
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