Efficiency Variance: The efficiency variance refers to the difference between the actual quantity for the input for an output level and the budgeted quantity of input required for the given output level multiplied by the budgeted input price. Spending Variance: The spending variance refers to the difference in the actual price of input and budgeted price of input multiplied by the actual quantity of the input. Production Volume Variance: The production volume variance is the difference in the budgeted amount of the fixed overhead costs and the fixed overhead costs allocated for the actual output produced. 1. The direct labor efficiency variance.

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Answer 1

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Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 8, Problem 8.25E

1.

To determine

Efficiency Variance:

The efficiency variance refers to the difference between the actual quantity for the input for an output level and the budgeted quantity of input required for the given output level multiplied by the budgeted input price.

Spending Variance:

The spending variance refers to the difference in the actual price of input and budgeted price of input multiplied by the actual quantity of the input.

Production Volume Variance:

The production volume variance is the difference in the budgeted amount of the fixed overhead costs and the fixed overhead costs allocated for the actual output produced.

1.

The direct labor efficiency variance.

2.

To determine

The denominator level and the spending and efficiency variances for total overhead.

3.

To determine

To explain: The way in which the individual fixed manufacturing overhead items can be controlled from day to day and the way in which individual fixed overhead items are controlled.

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Financial Accounting

Hunger Games Corporation has had a defined benefit pension plan for three decades. Two years ago, the company improved the benefits at a cost of $2,800,000. Pension plan assets were $84,000,000 while pension obligations were $76,000,000 at the beginning of the year. For the current year, Hunger Games 's pension plan incurred current service cost of $6,400,000 and interest of $8,600,000. The pension's assets earned $9,000,000, which is $400,000 below expectations. There were no actuarial gains or losses for the year. Required Compute the pension expense for the year. Record the journal entries for Hunger Games's pension plan.

Answer 2

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 8, Problem 8.25E

1.

To determine

Efficiency Variance:

The efficiency variance refers to the difference between the actual quantity for the input for an output level and the budgeted quantity of input required for the given output level multiplied by the budgeted input price.

Spending Variance:

The spending variance refers to the difference in the actual price of input and budgeted price of input multiplied by the actual quantity of the input.

Production Volume Variance:

The production volume variance is the difference in the budgeted amount of the fixed overhead costs and the fixed overhead costs allocated for the actual output produced.

1.

The direct labor efficiency variance.

2.

To determine

The denominator level and the spending and efficiency variances for total overhead.

3.

To determine

To explain: The way in which the individual fixed manufacturing overhead items can be controlled from day to day and the way in which individual fixed overhead items are controlled.

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Answer 3

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 8, Problem 8.25E

1.

To determine

Efficiency Variance:

The efficiency variance refers to the difference between the actual quantity for the input for an output level and the budgeted quantity of input required for the given output level multiplied by the budgeted input price.

Spending Variance:

The spending variance refers to the difference in the actual price of input and budgeted price of input multiplied by the actual quantity of the input.

Production Volume Variance:

The production volume variance is the difference in the budgeted amount of the fixed overhead costs and the fixed overhead costs allocated for the actual output produced.

1.

The direct labor efficiency variance.

2.

To determine

The denominator level and the spending and efficiency variances for total overhead.

3.

To determine

To explain: The way in which the individual fixed manufacturing overhead items can be controlled from day to day and the way in which individual fixed overhead items are controlled.

Expert Solution & Answer

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Answer 4

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 8, Problem 8.25E

1.

To determine

Efficiency Variance:

The efficiency variance refers to the difference between the actual quantity for the input for an output level and the budgeted quantity of input required for the given output level multiplied by the budgeted input price.

Spending Variance:

The spending variance refers to the difference in the actual price of input and budgeted price of input multiplied by the actual quantity of the input.

Production Volume Variance:

The production volume variance is the difference in the budgeted amount of the fixed overhead costs and the fixed overhead costs allocated for the actual output produced.

1.

The direct labor efficiency variance.

2.

To determine

The denominator level and the spending and efficiency variances for total overhead.

3.

To determine

To explain: The way in which the individual fixed manufacturing overhead items can be controlled from day to day and the way in which individual fixed overhead items are controlled.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 8.25E

1.

To determine

Efficiency Variance:

The efficiency variance refers to the difference between the actual quantity for the input for an output level and the budgeted quantity of input required for the given output level multiplied by the budgeted input price.

Spending Variance:

The spending variance refers to the difference in the actual price of input and budgeted price of input multiplied by the actual quantity of the input.

Production Volume Variance:

The production volume variance is the difference in the budgeted amount of the fixed overhead costs and the fixed overhead costs allocated for the actual output produced.

1.

The direct labor efficiency variance.

2.

To determine

The denominator level and the spending and efficiency variances for total overhead.

3.

To determine

To explain: The way in which the individual fixed manufacturing overhead items can be controlled from day to day and the way in which individual fixed overhead items are controlled.

Answer 6

Chapter 8, Problem 8.25E

1.

To determine

Efficiency Variance:

The efficiency variance refers to the difference between the actual quantity for the input for an output level and the budgeted quantity of input required for the given output level multiplied by the budgeted input price.

Spending Variance:

The spending variance refers to the difference in the actual price of input and budgeted price of input multiplied by the actual quantity of the input.

Production Volume Variance:

The production volume variance is the difference in the budgeted amount of the fixed overhead costs and the fixed overhead costs allocated for the actual output produced.

1.

The direct labor efficiency variance.

Answer 7

Chapter 8, Problem 8.25E

1.

To determine

Efficiency Variance:

The efficiency variance refers to the difference between the actual quantity for the input for an output level and the budgeted quantity of input required for the given output level multiplied by the budgeted input price.

Spending Variance:

The spending variance refers to the difference in the actual price of input and budgeted price of input multiplied by the actual quantity of the input.

Production Volume Variance:

The production volume variance is the difference in the budgeted amount of the fixed overhead costs and the fixed overhead costs allocated for the actual output produced.

1.

The direct labor efficiency variance.

Answer 8

2.

To determine

The denominator level and the spending and efficiency variances for total overhead.

Answer 9

2.

To determine

The denominator level and the spending and efficiency variances for total overhead.

Answer 10

3.

To determine

To explain: The way in which the individual fixed manufacturing overhead items can be controlled from day to day and the way in which individual fixed overhead items are controlled.

Answer 11

3.

To determine

To explain: The way in which the individual fixed manufacturing overhead items can be controlled from day to day and the way in which individual fixed overhead items are controlled.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 8 - How do managers plan for variable overhead costs?Ch. 8 - How does the planning of fixed overhead costs...Ch. 8 - How does standard costing differ from actual...Ch. 8 - What are the steps in developing a budgeted...Ch. 8 - What are the factors that affect the spending...Ch. 8 - Assume variable manufacturing overhead is...Ch. 8 - Describe the difference between a direct materials...Ch. 8 - What are the steps in developing a budgeted fixed...Ch. 8 - Why is the flexible-budget variance the same...Ch. 8 - Explain how the analysis of fixed manufacturing...

The denominator level and the spending and efficiency variances for total overhead.

To explain: The way in which the individual fixed manufacturing overhead items can be controlled from day to day and the way in which individual fixed overhead items are controlled.

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Chapter 8 Solutions