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Answer is complete but not entirely correct.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Prepare an overhead variance report at the actual activity level of 9,000 units. Classify as favorable or unfavorable. (Indicatethe effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations.)JAMES CORP.Overhead Variance ReportFor Month Ended May 31Expecteproduction80% of capacityvolume90% of capacityProduction level achievedFavorable5,125Volume varianceActualFlexible BudgetControllable VarianceVariancesFav./Unfav.ResultsVariable overhead costs:FavorableIndirect materials18,00016,0002,000FavorableIndirect labor22,50022,200300No variance5,625Power5,625Unfavorable3,375Maintenance3,975600FavorableTotal variable costs47,80049,5001,700Fixed overhead costs:No varianceRent of factory building16,00016,000010,100No varianceDepreciation-Machinery10.1000809 UnfavorableSupervisory salaries16,79117,600Unfavorable42,891809Total fixed costs43,700Unfavorable92.39191,500891Total overhead costs

Question

James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the following overhead budget:
 

 

Operating Levels

Overhead Budget

80%

Production in units

 

8,000

 

Standard direct labor hours

 

20,000

 

Budgeted overhead

 

 

 

Variable overhead costs

 

 

 

Indirect materials

$

16,000

 

Indirect labor

 

20,000

 

Power

 

5,000

 

Maintenance

 

3,000

 

Total variable costs

 

44,000

 

Fixed overhead costs

 

 

 

Rent of factory building

 

16,000

 

Depreciation—Machinery

 

10,100

 

Supervisory salaries

 

14,900

 

Total fixed costs

 

41,000

 

Total overhead costs

$

85,000

 

 


During May, the company operated at 90% capacity (9,000 units) and incurred the following actual overhead costs:
 

Overhead costs (actual)

Indirect materials

$

16,000

 

Indirect labor

 

22,200

 

Power

 

5,625

 

Maintenance

 

3,975

 

Rent of factory building

 

16,000

 

Depreciation—Machinery

 

10,100

 

Supervisory salaries

 

17,600

 

Total actual overhead costs

$

91,500

 

 

1.Compute the overhead controllable variance and classify it as favorable or unfavorable.
2.Compute the overhead volume variance and classify it as favorable or unfavorable.
3. Prepare an overhead variance report at the actual activity level of 9,000 units.

NEED HELP FOR FIGURING OUT THE SUPERVISORY SALARY SEE WHERE I AM MARKED WRONG FOR IT, LOOING FOR THE FORMULA PLEASE HELP!!!!

Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Prepare an overhead variance report at the actual activity level of 9,000 units. Classify as favorable or unfavorable. (Indicate
the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations.)
JAMES CORP.
Overhead Variance Report
For Month Ended May 31
Expecte
production
80% of capacity
volume
90% of capacity
Production level achieved
Favorable
5,125
Volume variance
Actual
Flexible Budget
Controllable Variance
Variances
Fav./Unfav.
Results
Variable overhead costs:
Favorable
Indirect materials
18,000
16,000
2,000
Favorable
Indirect labor
22,500
22,200
300
No variance
5,625
Power
5,625
Unfavorable
3,375
Maintenance
3,975
600
Favorable
Total variable costs
47,800
49,500
1,700
Fixed overhead costs:
No variance
Rent of factory building
16,000
16,000
0
10,100
No variance
Depreciation-Machinery
10.100
0
809 Unfavorable
Supervisory salaries
16,791
17,600
Unfavorable
42,891
809
Total fixed costs
43,700
Unfavorable
92.391
91,500
891
Total overhead costs
<Required 2
Required 3>
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Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an overhead variance report at the actual activity level of 9,000 units. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations.) JAMES CORP. Overhead Variance Report For Month Ended May 31 Expecte production 80% of capacity volume 90% of capacity Production level achieved Favorable 5,125 Volume variance Actual Flexible Budget Controllable Variance Variances Fav./Unfav. Results Variable overhead costs: Favorable Indirect materials 18,000 16,000 2,000 Favorable Indirect labor 22,500 22,200 300 No variance 5,625 Power 5,625 Unfavorable 3,375 Maintenance 3,975 600 Favorable Total variable costs 47,800 49,500 1,700 Fixed overhead costs: No variance Rent of factory building 16,000 16,000 0 10,100 No variance Depreciation-Machinery 10.100 0 809 Unfavorable Supervisory salaries 16,791 17,600 Unfavorable 42,891 809 Total fixed costs 43,700 Unfavorable 92.391 91,500 891 Total overhead costs <Required 2 Required 3>

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Step 1

Overhead: Overhead refers to the costs, which are utilized in business activities, however cannot be related to a specific activity or product.

Step 2

Prepare the overhead v...

Prepare the overhead variance report
JAMES CORP.
OVERHEAD VARIANCE REPORT
FOR MOΝΙΗ ΕNDED MAY 31
Expected Production
80% of Capacity
Volume
90% of Capacity
Production Level Achieved
$ 5,125 Favorable
Volume Variance
Flexible
Budget
Actual
Result
Favorable/
VariancesUnfavorable
Controllable Variance
Variable Overhead Costs
$18,000
$22,500
16,000
$2,000
$ 300
$0No Variance
($ 600) Unfavorable
Indirect Materials
Favorable
$22,200
Indirect Labor
Favorable
$ 5,625
$ 3,975
$ 47,800
$5,625
Power
$ 3.375
Maintenance
$1,700
49,500
Total Variable Cost
Favorable
Fixed Overhead Cost
$16,000 16,000
$10,100 10,100
$ 14,900 17,600
$0No Variance
$0No Variance
($ 2,700) Unfavorable
($ 2,700) Unfavorable
(S 1.000) Unfavorable
Rent of Factory Building
Depreciation- Machinery
Supervisory Salaries
$ 41,000
$ 43,700
Total Fixed Costs
90,500
$91.500
Total Overhead Costs
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Prepare the overhead variance report JAMES CORP. OVERHEAD VARIANCE REPORT FOR MOΝΙΗ ΕNDED MAY 31 Expected Production 80% of Capacity Volume 90% of Capacity Production Level Achieved $ 5,125 Favorable Volume Variance Flexible Budget Actual Result Favorable/ VariancesUnfavorable Controllable Variance Variable Overhead Costs $18,000 $22,500 16,000 $2,000 $ 300 $0No Variance ($ 600) Unfavorable Indirect Materials Favorable $22,200 Indirect Labor Favorable $ 5,625 $ 3,975 $ 47,800 $5,625 Power $ 3.375 Maintenance $1,700 49,500 Total Variable Cost Favorable Fixed Overhead Cost $16,000 16,000 $10,100 10,100 $ 14,900 17,600 $0No Variance $0No Variance ($ 2,700) Unfavorable ($ 2,700) Unfavorable (S 1.000) Unfavorable Rent of Factory Building Depreciation- Machinery Supervisory Salaries $ 41,000 $ 43,700 Total Fixed Costs 90,500 $91.500 Total Overhead Costs

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