Graph for fixed manufacturing overhead which shows the way fixed manufacturing overhead costs will be depicted for the purposes of (a) planning and control and (b) inventory costing. Given information: 2014, Budgeted fixed manufacturing overhead cost is $17,000,000. Budgeted variable manufacturing overhead is $10 per machine hour. The denominator level is $1,000,000 machine hours. Budgeted fixed overhead cost per machine hour is $ 17 , 000 , 000 $ 1 , 000 , 000 = $ 17 per hour .

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Answer 1

Question

Chapter 8, Problem 8.32P

1.

To determine

To prepare: Graph for fixed manufacturing overhead which shows the way fixed manufacturing overhead costs will be depicted for the purposes of (a) planning and control and (b) inventory costing.

Given information:

2014,

Budgeted fixed manufacturing overhead cost is $17,000,000.

Budgeted variable manufacturing overhead is $10 per machine hour.

The denominator level is $1,000,000 machine hours.

Budgeted fixed overhead cost per machine hour is $17,000,000$1,000,000=$17 per hour.

2.

(a)

To determine

Variable manufacturing overhead spending and efficiency variances.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual variable manufacturing overhead is $12,075,000.

(b)

To determine

Fixed manufacturing overhead spending and volume variances.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual fixed manufacturing overhead is $17,100,000.

Budgeted fixed overhead rate is $17 (calculated in part 1).

3.

To determine

The under or over allocated variable manufacturing overhead and the under or over allocated fixed manufacturing overhead and the reason for flexible budget variance and the under or over allocated overhead amount always the same for variable manufacturing overhead but rarely the same for fixed manufacturing overhead.

Given information:

2014,

Variable spending variance is $75,000 U (calculated in part B).

Variable efficiency variance is $750,000 U (calculated in part B).

Fixed spending variance is $100,000 U (calculated in part B).

Fixed volume variance is $340,000 F (calculated in part B).

Actual quantity of input used is 1,200,000 hours.

Actual rate is $10.0625.

Budgeted quantity for actual output is $1,125,000.

Budgeted rate is $10.

4.

To determine

The effect on the variances due to change in denominator.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual fixed manufacturing overhead is $17,100,000.

Denominator is 1,700,000

Budgeted fixed overhead rate is $17,000,000$1,700,000=$10.

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Answer 2

Question

Chapter 8, Problem 8.32P

1.

To determine

To prepare: Graph for fixed manufacturing overhead which shows the way fixed manufacturing overhead costs will be depicted for the purposes of (a) planning and control and (b) inventory costing.

Given information:

2014,

Budgeted fixed manufacturing overhead cost is $17,000,000.

Budgeted variable manufacturing overhead is $10 per machine hour.

The denominator level is $1,000,000 machine hours.

Budgeted fixed overhead cost per machine hour is $17,000,000$1,000,000=$17 per hour.

2.

(a)

To determine

Variable manufacturing overhead spending and efficiency variances.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual variable manufacturing overhead is $12,075,000.

(b)

To determine

Fixed manufacturing overhead spending and volume variances.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual fixed manufacturing overhead is $17,100,000.

Budgeted fixed overhead rate is $17 (calculated in part 1).

3.

To determine

The under or over allocated variable manufacturing overhead and the under or over allocated fixed manufacturing overhead and the reason for flexible budget variance and the under or over allocated overhead amount always the same for variable manufacturing overhead but rarely the same for fixed manufacturing overhead.

Given information:

2014,

Variable spending variance is $75,000 U (calculated in part B).

Variable efficiency variance is $750,000 U (calculated in part B).

Fixed spending variance is $100,000 U (calculated in part B).

Fixed volume variance is $340,000 F (calculated in part B).

Actual quantity of input used is 1,200,000 hours.

Actual rate is $10.0625.

Budgeted quantity for actual output is $1,125,000.

Budgeted rate is $10.

4.

To determine

The effect on the variances due to change in denominator.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual fixed manufacturing overhead is $17,100,000.

Denominator is 1,700,000

Budgeted fixed overhead rate is $17,000,000$1,700,000=$10.

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Answer 3

Question

Chapter 8, Problem 8.32P

1.

To determine

To prepare: Graph for fixed manufacturing overhead which shows the way fixed manufacturing overhead costs will be depicted for the purposes of (a) planning and control and (b) inventory costing.

Given information:

2014,

Budgeted fixed manufacturing overhead cost is $17,000,000.

Budgeted variable manufacturing overhead is $10 per machine hour.

The denominator level is $1,000,000 machine hours.

Budgeted fixed overhead cost per machine hour is $17,000,000$1,000,000=$17 per hour.

2.

(a)

To determine

Variable manufacturing overhead spending and efficiency variances.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual variable manufacturing overhead is $12,075,000.

(b)

To determine

Fixed manufacturing overhead spending and volume variances.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual fixed manufacturing overhead is $17,100,000.

Budgeted fixed overhead rate is $17 (calculated in part 1).

3.

To determine

The under or over allocated variable manufacturing overhead and the under or over allocated fixed manufacturing overhead and the reason for flexible budget variance and the under or over allocated overhead amount always the same for variable manufacturing overhead but rarely the same for fixed manufacturing overhead.

Given information:

2014,

Variable spending variance is $75,000 U (calculated in part B).

Variable efficiency variance is $750,000 U (calculated in part B).

Fixed spending variance is $100,000 U (calculated in part B).

Fixed volume variance is $340,000 F (calculated in part B).

Actual quantity of input used is 1,200,000 hours.

Actual rate is $10.0625.

Budgeted quantity for actual output is $1,125,000.

Budgeted rate is $10.

4.

To determine

The effect on the variances due to change in denominator.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual fixed manufacturing overhead is $17,100,000.

Denominator is 1,700,000

Budgeted fixed overhead rate is $17,000,000$1,700,000=$10.

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Answer 4

Question

Chapter 8, Problem 8.32P

1.

To determine

To prepare: Graph for fixed manufacturing overhead which shows the way fixed manufacturing overhead costs will be depicted for the purposes of (a) planning and control and (b) inventory costing.

Given information:

2014,

Budgeted fixed manufacturing overhead cost is $17,000,000.

Budgeted variable manufacturing overhead is $10 per machine hour.

The denominator level is $1,000,000 machine hours.

Budgeted fixed overhead cost per machine hour is $17,000,000$1,000,000=$17 per hour.

2.

(a)

To determine

Variable manufacturing overhead spending and efficiency variances.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual variable manufacturing overhead is $12,075,000.

(b)

To determine

Fixed manufacturing overhead spending and volume variances.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual fixed manufacturing overhead is $17,100,000.

Budgeted fixed overhead rate is $17 (calculated in part 1).

3.

To determine

The under or over allocated variable manufacturing overhead and the under or over allocated fixed manufacturing overhead and the reason for flexible budget variance and the under or over allocated overhead amount always the same for variable manufacturing overhead but rarely the same for fixed manufacturing overhead.

Given information:

2014,

Variable spending variance is $75,000 U (calculated in part B).

Variable efficiency variance is $750,000 U (calculated in part B).

Fixed spending variance is $100,000 U (calculated in part B).

Fixed volume variance is $340,000 F (calculated in part B).

Actual quantity of input used is 1,200,000 hours.

Actual rate is $10.0625.

Budgeted quantity for actual output is $1,125,000.

Budgeted rate is $10.

4.

To determine

The effect on the variances due to change in denominator.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual fixed manufacturing overhead is $17,100,000.

Denominator is 1,700,000

Budgeted fixed overhead rate is $17,000,000$1,700,000=$10.

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Answer 5

Chapter 8, Problem 8.32P

1.

To determine

To prepare: Graph for fixed manufacturing overhead which shows the way fixed manufacturing overhead costs will be depicted for the purposes of (a) planning and control and (b) inventory costing.

Given information:

2014,

Budgeted fixed manufacturing overhead cost is $17,000,000.

Budgeted variable manufacturing overhead is $10 per machine hour.

The denominator level is $1,000,000 machine hours.

Budgeted fixed overhead cost per machine hour is $17,000,000$1,000,000=$17 per hour.

2.

(a)

To determine

Variable manufacturing overhead spending and efficiency variances.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual variable manufacturing overhead is $12,075,000.

(b)

To determine

Fixed manufacturing overhead spending and volume variances.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual fixed manufacturing overhead is $17,100,000.

Budgeted fixed overhead rate is $17 (calculated in part 1).

3.

To determine

The under or over allocated variable manufacturing overhead and the under or over allocated fixed manufacturing overhead and the reason for flexible budget variance and the under or over allocated overhead amount always the same for variable manufacturing overhead but rarely the same for fixed manufacturing overhead.

Given information:

2014,

Variable spending variance is $75,000 U (calculated in part B).

Variable efficiency variance is $750,000 U (calculated in part B).

Fixed spending variance is $100,000 U (calculated in part B).

Fixed volume variance is $340,000 F (calculated in part B).

Actual quantity of input used is 1,200,000 hours.

Actual rate is $10.0625.

Budgeted quantity for actual output is $1,125,000.

Budgeted rate is $10.

4.

To determine

The effect on the variances due to change in denominator.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual fixed manufacturing overhead is $17,100,000.

Denominator is 1,700,000

Budgeted fixed overhead rate is $17,000,000$1,700,000=$10.

Answer 6

Chapter 8, Problem 8.32P

1.

To determine

To prepare: Graph for fixed manufacturing overhead which shows the way fixed manufacturing overhead costs will be depicted for the purposes of (a) planning and control and (b) inventory costing.

Given information:

2014,

Budgeted fixed manufacturing overhead cost is $17,000,000.

Budgeted variable manufacturing overhead is $10 per machine hour.

The denominator level is $1,000,000 machine hours.

Budgeted fixed overhead cost per machine hour is $17,000,000$1,000,000=$17 per hour.

Answer 7

Chapter 8, Problem 8.32P

1.

To determine

To prepare: Graph for fixed manufacturing overhead which shows the way fixed manufacturing overhead costs will be depicted for the purposes of (a) planning and control and (b) inventory costing.

Given information:

2014,

Budgeted fixed manufacturing overhead cost is $17,000,000.

Budgeted variable manufacturing overhead is $10 per machine hour.

The denominator level is $1,000,000 machine hours.

Budgeted fixed overhead cost per machine hour is $17,000,000$1,000,000=$17 per hour.

Answer 8

2.

(a)

To determine

Variable manufacturing overhead spending and efficiency variances.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual variable manufacturing overhead is $12,075,000.

Answer 9

2.

(a)

To determine

Variable manufacturing overhead spending and efficiency variances.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual variable manufacturing overhead is $12,075,000.

Answer 10

(b)

To determine

Fixed manufacturing overhead spending and volume variances.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual fixed manufacturing overhead is $17,100,000.

Budgeted fixed overhead rate is $17 (calculated in part 1).

Answer 11

(b)

To determine

Fixed manufacturing overhead spending and volume variances.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual fixed manufacturing overhead is $17,100,000.

Budgeted fixed overhead rate is $17 (calculated in part 1).

Answer 12

3.

To determine

The under or over allocated variable manufacturing overhead and the under or over allocated fixed manufacturing overhead and the reason for flexible budget variance and the under or over allocated overhead amount always the same for variable manufacturing overhead but rarely the same for fixed manufacturing overhead.

Given information:

2014,

Variable spending variance is $75,000 U (calculated in part B).

Variable efficiency variance is $750,000 U (calculated in part B).

Fixed spending variance is $100,000 U (calculated in part B).

Fixed volume variance is $340,000 F (calculated in part B).

Actual quantity of input used is 1,200,000 hours.

Actual rate is $10.0625.

Budgeted quantity for actual output is $1,125,000.

Budgeted rate is $10.

Answer 13

3.

To determine

The under or over allocated variable manufacturing overhead and the under or over allocated fixed manufacturing overhead and the reason for flexible budget variance and the under or over allocated overhead amount always the same for variable manufacturing overhead but rarely the same for fixed manufacturing overhead.

Given information:

2014,

Variable spending variance is $75,000 U (calculated in part B).

Variable efficiency variance is $750,000 U (calculated in part B).

Fixed spending variance is $100,000 U (calculated in part B).

Fixed volume variance is $340,000 F (calculated in part B).

Actual quantity of input used is 1,200,000 hours.

Actual rate is $10.0625.

Budgeted quantity for actual output is $1,125,000.

Budgeted rate is $10.

Answer 14

4.

To determine

The effect on the variances due to change in denominator.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual fixed manufacturing overhead is $17,100,000.

Denominator is 1,700,000

Budgeted fixed overhead rate is $17,000,000$1,700,000=$10.

Answer 15

4.

To determine

The effect on the variances due to change in denominator.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual fixed manufacturing overhead is $17,100,000.

Denominator is 1,700,000

Budgeted fixed overhead rate is $17,000,000$1,700,000=$10.

Answer 16

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Answer 17

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Answer 18

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Answer 19

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...

Variable manufacturing overhead spending and efficiency variances. Given information: 2014, Budgeted hours allowed for actual output is 1,125,000. Actual machine hours are 1,200,000. Actual variable manufacturing overhead is $12,075,000.

Fixed manufacturing overhead spending and volume variances. Given information: 2014, Budgeted hours allowed for actual output is 1,125,000. Actual machine hours are 1,200,000. Actual fixed manufacturing overhead is $17,100,000. Budgeted fixed overhead rate is $17 (calculated in part 1).

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Chapter 8 Solutions

Variable manufacturing overhead spending and efficiency variances.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual variable manufacturing overhead is $12,075,000.

Fixed manufacturing overhead spending and volume variances.

Given information:

2014,

Budgeted hours allowed for actual output is 1,125,000.

Actual machine hours are 1,200,000.

Actual fixed manufacturing overhead is $17,100,000.

Budgeted fixed overhead rate is $17 (calculated in part 1).