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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S Conner's Fixtures produces and sells a single product, a specialized plumbing fixture. The business began operations on January 1 this year and its costs incurred during the year include the following: Variable costs (based on units produced): Direct materials cost Direct manufacturing labor costs Indirect manufacturing costs Administration and marketing Fixed costs: Administration and marketing costs Indirect manufacturing costs $ 24,000 108,000 21,600 13,500 72,000 24,000 At the end of the first year (December 31), direct materials inventory consisted of 7,500 pounds of material. Production in that year was 10,000 fixtures. All prices and unit variable costs remained constant during the year. Sales revenue for year 1 was $293,250. Finished goods inventory was $24.420 on December 31. Each finished fixture requires 3.20 pounds of material. Required: a. Compute the direct materials inventory cost, December 31. b. Compute the finished goods ending inventory in units (fixtures) on…
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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Bailey Company manufacturers and sells one product for $39 per unit. The company maintains no beginning or ending inventories and its relevant range of production is 20,000 units to 30,000 units. When Bailey Company produces and sells 24,000 units, its unit costs are as follows: Amount per UnitDirect materials $ 10.00Direct labor $ 6.00Variable manufacturing overhead $ 2.00Fixed manufacturing overhead $ 7.00Fixed selling expense $ 3.75Fixed administrative expense $ 2.25Sales commissions $ 4.50Variable administrative expense $ 1.50 I NEED HELP WITH QUESTIONS 4A-5
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