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

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>

Image Transcription

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>

Expert Answer

Want to see the step-by-step answer?

See Answer

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Answer
*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A

Q: Madison Thorne works in a public accounting firm and hopes to eventually be a partner. The managemen...

A: In case, Thorne accepts the condition for audit fee, it leads to a compromise of auditor’s independe...

Q: E 16-4 Partnership income allocation—Salary allowance and interest The partnership agreement of Dan,...

A: The partnershipp profits are distributed between partners on the basis of the partnership agreement....

Q: I need help with this:   New Haven Corporation recently identified an investment opportunity invovli...

A: Click to see the answer

Q: Factory Overhead Costs During August, Rothchild Company incurred factory overhead costs as follows: ...

A: Factroy overhead:Factory overhead includes all the manufacturing costs except the direct material co...

Q: A restaurant's cash register shows sales of $1,400 for the day. Of this amount, $600 was cash sales....

A: Accounts receivable is the amount that is yet to be received by the company from the customers on it...

Q: eBay sells used products collected from different suppliers. Assume a customer purchases a used bicy...

A: Revenue Recognition is an accounting principle that determines the bases when an organization can re...

Q: E 16-13 Partnership income allocation—Salary allowance, bonus, and additional contributions during t...

A: 1.Income allocation schedule is prepared using MS Excel as follows:The results of the formulas used ...

Q: Top two questions go with number 49.

A: There are 2 methods of calculating home office deduction. The simplified option and the actual expen...

Q: On January 1, Intergen, Inc., invests $200,000 for a40 percentinterest in Ryan, a new jointventure w...

A: The total return percentage on investment is total return divided by investments.