Spending Variance: Spending variance is the deviation of actual expenses from the budgeted expenses. Efficiency Variance: Efficiency variance is the distinction between actual quantity of input and estimated quantity of input purchased for a particular price. Production-Volume Variance: Production volume variance determines the amount of overhead employed to the quantity produced. It is the distinction between the actual quantity manufactured and estimated quantity that should have been manufactured multiplied by budgeted overhead rate. Price Variance: Price variance is the distinction between the estimated or budgeted price of the input material and actual price of the input material multiplied by actual volume of input. Budgeted fixed overhead rate: Budgeted fixed overhead rate is the sum total of estimated overhead cost divided by the total volume of budgeted cost allocation base. To compute: Static budget number of setups for 2014.

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Answer 1

Question

Chapter 8, Problem 8.37P

1.

To determine

Spending Variance:

Spending variance is the deviation of actual expenses from the budgeted expenses.

Efficiency Variance:

Efficiency variance is the distinction between actual quantity of input and estimated quantity of input purchased for a particular price.

Production-Volume Variance:

Production volume variance determines the amount of overhead employed to the quantity produced. It is the distinction between the actual quantity manufactured and estimated quantity that should have been manufactured multiplied by budgeted overhead rate.

Price Variance:

Price variance is the distinction between the estimated or budgeted price of the input material and actual price of the input material multiplied by actual volume of input.

Budgeted fixed overhead rate:

Budgeted fixed overhead rate is the sum total of estimated overhead cost divided by the total volume of budgeted cost allocation base.

To compute: Static budget number of setups for 2014.

2.

To determine

To compute: Flexible budget number of setups for 2014.

3.

To determine

To compute: Actual number of setups in 2014.

4.

To determine

To compute: Budgeted fixed setup overhead allocation rate.

5.

To determine

Additional charge cover the budgeted direct variable cost and budgeted total cost.

6.

To determine

To compute: Price and efficiency variance for direct variable setup costs.

7.

To determine

To compute: Spending and production-volume variance for fixed setup overhead costs.

8.

To determine

Qualitative factors to be considered by RS Company before accepting or rejecting a special order.

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Cullumber Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2025, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $16,800, direct labor $10,080, and manufacturing overhead $13,440. As of January 1, Job 49 had been completed at a cost of $75,600 and was part of finished goods inventory. There was a $12,600 balance in the Raw Materials Inventory account on January 1. During the month of January, Cullumber Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $102,480 and $132,720, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $75,600 on account. 2. Incurred factory labor costs of $58,800. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $10,080; and various other…

General Accounting question

Answer 2

Question

Chapter 8, Problem 8.37P

1.

To determine

Spending Variance:

Spending variance is the deviation of actual expenses from the budgeted expenses.

Efficiency Variance:

Efficiency variance is the distinction between actual quantity of input and estimated quantity of input purchased for a particular price.

Production-Volume Variance:

Production volume variance determines the amount of overhead employed to the quantity produced. It is the distinction between the actual quantity manufactured and estimated quantity that should have been manufactured multiplied by budgeted overhead rate.

Price Variance:

Price variance is the distinction between the estimated or budgeted price of the input material and actual price of the input material multiplied by actual volume of input.

Budgeted fixed overhead rate:

Budgeted fixed overhead rate is the sum total of estimated overhead cost divided by the total volume of budgeted cost allocation base.

To compute: Static budget number of setups for 2014.

2.

To determine

To compute: Flexible budget number of setups for 2014.

3.

To determine

To compute: Actual number of setups in 2014.

4.

To determine

To compute: Budgeted fixed setup overhead allocation rate.

5.

To determine

Additional charge cover the budgeted direct variable cost and budgeted total cost.

6.

To determine

To compute: Price and efficiency variance for direct variable setup costs.

7.

To determine

To compute: Spending and production-volume variance for fixed setup overhead costs.

8.

To determine

Qualitative factors to be considered by RS Company before accepting or rejecting a special order.

Expert Solution & Answer

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Answer 3

Question

Chapter 8, Problem 8.37P

1.

To determine

Spending Variance:

Spending variance is the deviation of actual expenses from the budgeted expenses.

Efficiency Variance:

Efficiency variance is the distinction between actual quantity of input and estimated quantity of input purchased for a particular price.

Production-Volume Variance:

Production volume variance determines the amount of overhead employed to the quantity produced. It is the distinction between the actual quantity manufactured and estimated quantity that should have been manufactured multiplied by budgeted overhead rate.

Price Variance:

Price variance is the distinction between the estimated or budgeted price of the input material and actual price of the input material multiplied by actual volume of input.

Budgeted fixed overhead rate:

Budgeted fixed overhead rate is the sum total of estimated overhead cost divided by the total volume of budgeted cost allocation base.

To compute: Static budget number of setups for 2014.

2.

To determine

To compute: Flexible budget number of setups for 2014.

3.

To determine

To compute: Actual number of setups in 2014.

4.

To determine

To compute: Budgeted fixed setup overhead allocation rate.

5.

To determine

Additional charge cover the budgeted direct variable cost and budgeted total cost.

6.

To determine

To compute: Price and efficiency variance for direct variable setup costs.

7.

To determine

To compute: Spending and production-volume variance for fixed setup overhead costs.

8.

To determine

Qualitative factors to be considered by RS Company before accepting or rejecting a special order.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 8, Problem 8.37P

1.

To determine

Spending Variance:

Spending variance is the deviation of actual expenses from the budgeted expenses.

Efficiency Variance:

Efficiency variance is the distinction between actual quantity of input and estimated quantity of input purchased for a particular price.

Production-Volume Variance:

Production volume variance determines the amount of overhead employed to the quantity produced. It is the distinction between the actual quantity manufactured and estimated quantity that should have been manufactured multiplied by budgeted overhead rate.

Price Variance:

Price variance is the distinction between the estimated or budgeted price of the input material and actual price of the input material multiplied by actual volume of input.

Budgeted fixed overhead rate:

Budgeted fixed overhead rate is the sum total of estimated overhead cost divided by the total volume of budgeted cost allocation base.

To compute: Static budget number of setups for 2014.

2.

To determine

To compute: Flexible budget number of setups for 2014.

3.

To determine

To compute: Actual number of setups in 2014.

4.

To determine

To compute: Budgeted fixed setup overhead allocation rate.

5.

To determine

Additional charge cover the budgeted direct variable cost and budgeted total cost.

6.

To determine

To compute: Price and efficiency variance for direct variable setup costs.

7.

To determine

To compute: Spending and production-volume variance for fixed setup overhead costs.

8.

To determine

Qualitative factors to be considered by RS Company before accepting or rejecting a special order.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 8, Problem 8.37P

1.

To determine

Spending Variance:

Spending variance is the deviation of actual expenses from the budgeted expenses.

Efficiency Variance:

Efficiency variance is the distinction between actual quantity of input and estimated quantity of input purchased for a particular price.

Production-Volume Variance:

Production volume variance determines the amount of overhead employed to the quantity produced. It is the distinction between the actual quantity manufactured and estimated quantity that should have been manufactured multiplied by budgeted overhead rate.

Price Variance:

Price variance is the distinction between the estimated or budgeted price of the input material and actual price of the input material multiplied by actual volume of input.

Budgeted fixed overhead rate:

Budgeted fixed overhead rate is the sum total of estimated overhead cost divided by the total volume of budgeted cost allocation base.

To compute: Static budget number of setups for 2014.

2.

To determine

To compute: Flexible budget number of setups for 2014.

3.

To determine

To compute: Actual number of setups in 2014.

4.

To determine

To compute: Budgeted fixed setup overhead allocation rate.

5.

To determine

Additional charge cover the budgeted direct variable cost and budgeted total cost.

6.

To determine

To compute: Price and efficiency variance for direct variable setup costs.

7.

To determine

To compute: Spending and production-volume variance for fixed setup overhead costs.

8.

To determine

Qualitative factors to be considered by RS Company before accepting or rejecting a special order.

Answer 6

Chapter 8, Problem 8.37P

1.

To determine

Spending Variance:

Spending variance is the deviation of actual expenses from the budgeted expenses.

Efficiency Variance:

Efficiency variance is the distinction between actual quantity of input and estimated quantity of input purchased for a particular price.

Production-Volume Variance:

Production volume variance determines the amount of overhead employed to the quantity produced. It is the distinction between the actual quantity manufactured and estimated quantity that should have been manufactured multiplied by budgeted overhead rate.

Price Variance:

Price variance is the distinction between the estimated or budgeted price of the input material and actual price of the input material multiplied by actual volume of input.

Budgeted fixed overhead rate:

Budgeted fixed overhead rate is the sum total of estimated overhead cost divided by the total volume of budgeted cost allocation base.

To compute: Static budget number of setups for 2014.

Answer 7

Chapter 8, Problem 8.37P

1.

To determine

Spending Variance:

Spending variance is the deviation of actual expenses from the budgeted expenses.

Efficiency Variance:

Efficiency variance is the distinction between actual quantity of input and estimated quantity of input purchased for a particular price.

Production-Volume Variance:

Production volume variance determines the amount of overhead employed to the quantity produced. It is the distinction between the actual quantity manufactured and estimated quantity that should have been manufactured multiplied by budgeted overhead rate.

Price Variance:

Price variance is the distinction between the estimated or budgeted price of the input material and actual price of the input material multiplied by actual volume of input.

Budgeted fixed overhead rate:

Budgeted fixed overhead rate is the sum total of estimated overhead cost divided by the total volume of budgeted cost allocation base.

To compute: Static budget number of setups for 2014.

Answer 8

2.

To determine

To compute: Flexible budget number of setups for 2014.

Answer 9

2.

To determine

To compute: Flexible budget number of setups for 2014.

Answer 10

3.

To determine

To compute: Actual number of setups in 2014.

Answer 11

3.

To determine

To compute: Actual number of setups in 2014.

Answer 12

4.

To determine

To compute: Budgeted fixed setup overhead allocation rate.

Answer 13

4.

To determine

To compute: Budgeted fixed setup overhead allocation rate.

Answer 14

5.

To determine

Additional charge cover the budgeted direct variable cost and budgeted total cost.

Answer 15

5.

To determine

Additional charge cover the budgeted direct variable cost and budgeted total cost.

Answer 16

6.

To determine

To compute: Price and efficiency variance for direct variable setup costs.

Answer 17

6.

To determine

To compute: Price and efficiency variance for direct variable setup costs.

Answer 18

7.

To determine

To compute: Spending and production-volume variance for fixed setup overhead costs.

Answer 19

7.

To determine

To compute: Spending and production-volume variance for fixed setup overhead costs.

Answer 20

8.

To determine

Qualitative factors to be considered by RS Company before accepting or rejecting a special order.

Answer 21

8.

To determine

Qualitative factors to be considered by RS Company before accepting or rejecting a special order.

Answer 22

Expert Solution & Answer

Answer 23

Expert Solution & Answer

Answer 24

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Answer 25

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...

To compute: Flexible budget number of setups for 2014.

To compute: Actual number of setups in 2014.

To compute: Budgeted fixed setup overhead allocation rate.

Additional charge cover the budgeted direct variable cost and budgeted total cost.

To compute: Price and efficiency variance for direct variable setup costs.

To compute: Spending and production-volume variance for fixed setup overhead costs.

Qualitative factors to be considered by RS Company before accepting or rejecting a special order.

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Chapter 8 Solutions