(a) Concept introduction: Fixed overhead rate variances: It is calculated by dividing fixed manufacturing overhead with practical capacity of the company. To compute: The fixed overhead rate based on practical capacity.

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Answer 1

Question

Chapter 9, Problem 14E

To determine

(a)

Concept introduction:

Fixed overhead rate variances:

It is calculated by dividing fixed manufacturing overhead with practical capacity of the company.

To compute:

The fixed overhead rate based on practical capacity.

To determine

(b)

Concept introduction:

Fixed overhead spending variances:

It is the difference between ‘budgeted fixed overhead’ and ‘actual fixed overhead’.

To compute:

The fixed overhead spending variances of HMC.

To determine

(c)

Concept introduction:

Expected (planned) capacity variance:

It is the difference between budgeted volume and practical capacity multiplied with fixed overhead rate.

To compute:

TheExpected (planned) capacity variance of HMC.

To determine

(d)

Concept introduction:

Unexpected (unplanned) capacity variance:

It is the difference between actual volume and budgeted volume multiplied with fixed overhead rate.

To compute:

Theunexpected (unplanned) capacity variance of HMC.

To determine

(e)

Concept introduction:

Fixed overhead spending variances:

It is the difference between budgeted fixed overhead and actual fixed overhead.

Fixed overhead volume variance:

It is the difference between actual volume and budgeted volume multiplied with fixed overhead rate.

Whether fixed manufacturing overhead is over or under applied.

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The following data were drawn from the records of Fanning Corporation. Planned volume for year (static budget) Standard direct materials cost per unit Standard direct labor cost per unit Total expected fixed overhead costs. Actual volume for the year (flexible budget) Actual direct materials cost per unit Actual direct labor cost per unit Total actual fixed overhead costs Required a. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. b. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours. d. Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). e. Calculate the predetermined overhead rate, assuming that Fanning uses the number of units as…

f. Variable manufacturing overhead efficiency variance g. Fixed manufacturing overhead spending variance h. Production-volume variance

Required information [The following information applies to the questions displayed below.] AirPro Corporation reports the following for this period. Actual total overhead Standard overhead applied Budgeted (flexible) variable overhead rate Budgeted fixed overhead Predicted activity level Actual activity level $ 28,325 $ 32,550 $ 2.10 per unit $ 12,700 12,700 units 10,500 units Compute the (a) total overhead variance and (b) controllable variance and identify each variance as favorable or unfavorable. (Round "Variable amount per unit" to 2 decimal places.) Flexible Budget Flexible Budget at Variable Amount per Unit Total Fixed Cost 12.700 units 10.500 units Total flexible budget Controllable Overhead Variance Controllable overhead variance

Answer 2

Question

Chapter 9, Problem 14E

To determine

(a)

Concept introduction:

Fixed overhead rate variances:

It is calculated by dividing fixed manufacturing overhead with practical capacity of the company.

To compute:

The fixed overhead rate based on practical capacity.

To determine

(b)

Concept introduction:

Fixed overhead spending variances:

It is the difference between ‘budgeted fixed overhead’ and ‘actual fixed overhead’.

To compute:

The fixed overhead spending variances of HMC.

To determine

(c)

Concept introduction:

Expected (planned) capacity variance:

It is the difference between budgeted volume and practical capacity multiplied with fixed overhead rate.

To compute:

TheExpected (planned) capacity variance of HMC.

To determine

(d)

Concept introduction:

Unexpected (unplanned) capacity variance:

It is the difference between actual volume and budgeted volume multiplied with fixed overhead rate.

To compute:

Theunexpected (unplanned) capacity variance of HMC.

To determine

(e)

Concept introduction:

Fixed overhead spending variances:

It is the difference between budgeted fixed overhead and actual fixed overhead.

Fixed overhead volume variance:

It is the difference between actual volume and budgeted volume multiplied with fixed overhead rate.

Whether fixed manufacturing overhead is over or under applied.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 9, Problem 14E

To determine

(a)

Concept introduction:

Fixed overhead rate variances:

It is calculated by dividing fixed manufacturing overhead with practical capacity of the company.

To compute:

The fixed overhead rate based on practical capacity.

To determine

(b)

Concept introduction:

Fixed overhead spending variances:

It is the difference between ‘budgeted fixed overhead’ and ‘actual fixed overhead’.

To compute:

The fixed overhead spending variances of HMC.

To determine

(c)

Concept introduction:

Expected (planned) capacity variance:

It is the difference between budgeted volume and practical capacity multiplied with fixed overhead rate.

To compute:

TheExpected (planned) capacity variance of HMC.

To determine

(d)

Concept introduction:

Unexpected (unplanned) capacity variance:

It is the difference between actual volume and budgeted volume multiplied with fixed overhead rate.

To compute:

Theunexpected (unplanned) capacity variance of HMC.

To determine

(e)

Concept introduction:

Fixed overhead spending variances:

It is the difference between budgeted fixed overhead and actual fixed overhead.

Fixed overhead volume variance:

It is the difference between actual volume and budgeted volume multiplied with fixed overhead rate.

Whether fixed manufacturing overhead is over or under applied.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 9, Problem 14E

To determine

(a)

Concept introduction:

Fixed overhead rate variances:

It is calculated by dividing fixed manufacturing overhead with practical capacity of the company.

To compute:

The fixed overhead rate based on practical capacity.

To determine

(b)

Concept introduction:

Fixed overhead spending variances:

It is the difference between ‘budgeted fixed overhead’ and ‘actual fixed overhead’.

To compute:

The fixed overhead spending variances of HMC.

To determine

(c)

Concept introduction:

Expected (planned) capacity variance:

It is the difference between budgeted volume and practical capacity multiplied with fixed overhead rate.

To compute:

TheExpected (planned) capacity variance of HMC.

To determine

(d)

Concept introduction:

Unexpected (unplanned) capacity variance:

It is the difference between actual volume and budgeted volume multiplied with fixed overhead rate.

To compute:

Theunexpected (unplanned) capacity variance of HMC.

To determine

(e)

Concept introduction:

Fixed overhead spending variances:

It is the difference between budgeted fixed overhead and actual fixed overhead.

Fixed overhead volume variance:

It is the difference between actual volume and budgeted volume multiplied with fixed overhead rate.

Whether fixed manufacturing overhead is over or under applied.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 9, Problem 14E

To determine

(a)

Concept introduction:

Fixed overhead rate variances:

It is calculated by dividing fixed manufacturing overhead with practical capacity of the company.

To compute:

The fixed overhead rate based on practical capacity.

To determine

(b)

Concept introduction:

Fixed overhead spending variances:

It is the difference between ‘budgeted fixed overhead’ and ‘actual fixed overhead’.

To compute:

The fixed overhead spending variances of HMC.

To determine

(c)

Concept introduction:

Expected (planned) capacity variance:

It is the difference between budgeted volume and practical capacity multiplied with fixed overhead rate.

To compute:

TheExpected (planned) capacity variance of HMC.

To determine

(d)

Concept introduction:

Unexpected (unplanned) capacity variance:

It is the difference between actual volume and budgeted volume multiplied with fixed overhead rate.

To compute:

Theunexpected (unplanned) capacity variance of HMC.

To determine

(e)

Concept introduction:

Fixed overhead spending variances:

It is the difference between budgeted fixed overhead and actual fixed overhead.

Fixed overhead volume variance:

It is the difference between actual volume and budgeted volume multiplied with fixed overhead rate.

Whether fixed manufacturing overhead is over or under applied.

Answer 6

Chapter 9, Problem 14E

To determine

(a)

Concept introduction:

Fixed overhead rate variances:

It is calculated by dividing fixed manufacturing overhead with practical capacity of the company.

To compute:

The fixed overhead rate based on practical capacity.

Answer 7

Chapter 9, Problem 14E

To determine

(a)

Concept introduction:

Fixed overhead rate variances:

It is calculated by dividing fixed manufacturing overhead with practical capacity of the company.

To compute:

The fixed overhead rate based on practical capacity.

Answer 8

To determine

(b)

Concept introduction:

Fixed overhead spending variances:

It is the difference between ‘budgeted fixed overhead’ and ‘actual fixed overhead’.

To compute:

The fixed overhead spending variances of HMC.

Answer 9

To determine

(b)

Concept introduction:

Fixed overhead spending variances:

It is the difference between ‘budgeted fixed overhead’ and ‘actual fixed overhead’.

To compute:

The fixed overhead spending variances of HMC.

Answer 10

To determine

(c)

Concept introduction:

Expected (planned) capacity variance:

It is the difference between budgeted volume and practical capacity multiplied with fixed overhead rate.

To compute:

TheExpected (planned) capacity variance of HMC.

Answer 11

To determine

(c)

Concept introduction:

Expected (planned) capacity variance:

It is the difference between budgeted volume and practical capacity multiplied with fixed overhead rate.

To compute:

TheExpected (planned) capacity variance of HMC.

Answer 12

To determine

(d)

Concept introduction:

Unexpected (unplanned) capacity variance:

It is the difference between actual volume and budgeted volume multiplied with fixed overhead rate.

To compute:

Theunexpected (unplanned) capacity variance of HMC.

Answer 13

To determine

(d)

Concept introduction:

Unexpected (unplanned) capacity variance:

It is the difference between actual volume and budgeted volume multiplied with fixed overhead rate.

To compute:

Theunexpected (unplanned) capacity variance of HMC.

Answer 14

To determine

(e)

Concept introduction:

Fixed overhead spending variances:

It is the difference between budgeted fixed overhead and actual fixed overhead.

Fixed overhead volume variance:

It is the difference between actual volume and budgeted volume multiplied with fixed overhead rate.

Whether fixed manufacturing overhead is over or under applied.

Answer 15

To determine

(e)

Concept introduction:

Fixed overhead spending variances:

It is the difference between budgeted fixed overhead and actual fixed overhead.

Fixed overhead volume variance:

It is the difference between actual volume and budgeted volume multiplied with fixed overhead rate.

Whether fixed manufacturing overhead is over or under applied.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 9 - Briefly describe the difference between budgetary...Ch. 9 - What are standard costs? When are they set?Ch. 9 - Prob. 3Q Ch. 9 - Prob. 4Q Ch. 9 - Prob. 5Q Ch. 9 - Prob. 6Q Ch. 9 - Prob. 7Q Ch. 9 - Prob. 8Q Ch. 9 - Prob. 9Q Ch. 9 - How do the master budget, flexible budget, and...

(a) Concept introduction: Fixed overhead rate variances: It is calculated by dividing fixed manufacturing overhead with practical capacity of the company. To compute: The fixed overhead rate based on practical capacity.

Solution Summary: The author explains fixed overhead rate variances, which is calculated by dividing fixed manufacturing overhead with practical capacity of the company.

Concept explainers

Videos

(a)

Concept introduction:

Fixed overhead rate variances:

It is calculated by dividing fixed manufacturing overhead with practical capacity of the company.

To compute:

The fixed overhead rate based on practical capacity.

(b)

Concept introduction:

Fixed overhead spending variances:

It is the difference between ‘budgeted fixed overhead’ and ‘actual fixed overhead’.

To compute:

The fixed overhead spending variances of HMC.

(c)

Concept introduction:

Expected (planned) capacity variance:

It is the difference between budgeted volume and practical capacity multiplied with fixed overhead rate.

To compute:

TheExpected (planned) capacity variance of HMC.

(d)

Concept introduction:

Unexpected (unplanned) capacity variance:

It is the difference between actual volume and budgeted volume multiplied with fixed overhead rate.

To compute:

Theunexpected (unplanned) capacity variance of HMC.

Want to see the full answer?

Chapter 9 Solutions

(a) Concept introduction: Fixed overhead rate variances: It is calculated by dividing fixed manufacturing overhead with practical capacity of the company. To compute: The fixed overhead rate based on practical capacity.

Solution Summary: The author explains fixed overhead rate variances, which is calculated by dividing fixed manufacturing overhead with practical capacity of the company.

Concept explainers

Videos

(a) Concept introduction: Fixed overhead rate variances: It is calculated by dividing fixed manufacturing overhead with practical capacity of the company. To compute: The fixed overhead rate based on practical capacity.

(b) Concept introduction: Fixed overhead spending variances: It is the difference between ‘budgeted fixed overhead’ and ‘actual fixed overhead’. To compute: The fixed overhead spending variances of HMC.

(c) Concept introduction: Expected (planned) capacity variance: It is the difference between budgeted volume and practical capacity multiplied with fixed overhead rate. To compute: TheExpected (planned) capacity variance of HMC.

(d) Concept introduction: Unexpected (unplanned) capacity variance: It is the difference between actual volume and budgeted volume multiplied with fixed overhead rate. To compute: Theunexpected (unplanned) capacity variance of HMC.

Want to see the full answer?

Chapter 9 Solutions

(a)

Concept introduction:

Fixed overhead rate variances:

It is calculated by dividing fixed manufacturing overhead with practical capacity of the company.

To compute:

The fixed overhead rate based on practical capacity.

(b)

Concept introduction:

Fixed overhead spending variances:

It is the difference between ‘budgeted fixed overhead’ and ‘actual fixed overhead’.

To compute:

The fixed overhead spending variances of HMC.

(c)

Concept introduction:

Expected (planned) capacity variance:

It is the difference between budgeted volume and practical capacity multiplied with fixed overhead rate.

To compute:

TheExpected (planned) capacity variance of HMC.

(d)

Concept introduction:

Unexpected (unplanned) capacity variance:

It is the difference between actual volume and budgeted volume multiplied with fixed overhead rate.

To compute:

Theunexpected (unplanned) capacity variance of HMC.