(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.

Question

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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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Oriole Company sells product 2005WSC for $55 per unit and uses the LIFO method. The cost of one unit of 2005WSC is $52, and the replacement cost is $51. The estimated cost to dispose of a unit is $6, and the normal profit is 40% of selling price. At what amount per unit should product 2005WSC be reported, applying lower-of-cost-or-market?

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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

Want to see the full answer?

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

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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.