CasesAB(1)Fixed manufacturing overhead incurred(2)Variable manufacturing overhead incurred(3)$27,000$10,511$132,900Denominator level in machine-hours45,000(4) Standard machine-hours allowed for actual output achieved(5) Fixed manufacturing overhead (per standard machine-hour)Flexible-Budget Data:(6) Variable manufacturing overhead (per standard machine-hour)Budgeted fixed manufacturing overhead(8) Budgeted variable manufacturing overheadTotal budgeted manufacturing overhead4,700$ 2.10$23,375$130,500Additional Data:(10)Standard variable manufacturing overhead allocated(11)Standard fixed manufacturing overhead allocated(12)$10,340$19,975$ 580 F$ 1,490 F$ 1,680 FProduction-volume variance$ 457 U(13)Variable manufacturing overhead spending variance(14)Variable manufacturing overhead efficiency variance(15)Fixed manufacturing overhead spending variance(16)Actual machine-hours used*For standard machine-hours allowed for actual output produced.Fill in the blanks under each case. [Hint: Prepare a worksheet similar to that in Exhibit 8-4 (page 304). Fill inthe knowns and then solve for the unknowns.]Required

Question
Asked Jan 10, 2020
12 views

Overhead variance, missing information. Consider the following two situations—cases A and B— independently. Data refer to operations for April 2017. For each situation, assume standard costing. Also assume the use of a flexible budget for control of variable and fixed manufacturing overhead based on machine-hours.

Cases
A
B
(1)
Fixed manufacturing overhead incurred
(2)
Variable manufacturing overhead incurred
(3)
$27,000
$10,511
$132,900
Denominator level in machine-hours
45,000
(4) Standard machine-hours allowed for actual output achieved
(5) Fixed manufacturing overhead (per standard machine-hour)
Flexible-Budget Data:
(6) Variable manufacturing overhead (per standard machine-hour)
Budgeted fixed manufacturing overhead
(8) Budgeted variable manufacturing overhead
Total budgeted manufacturing overhead
4,700
$ 2.10
$23,375
$130,500
Additional Data:
(10)
Standard variable manufacturing overhead allocated
(11)
Standard fixed manufacturing overhead allocated
(12)
$10,340
$19,975
$ 580 F
$ 1,490 F
$ 1,680 F
Production-volume variance
$ 457 U
(13)
Variable manufacturing overhead spending variance
(14)
Variable manufacturing overhead efficiency variance
(15)
Fixed manufacturing overhead spending variance
(16)
Actual machine-hours used
*For standard machine-hours allowed for actual output produced.
Fill in the blanks under each case. [Hint: Prepare a worksheet similar to that in Exhibit 8-4 (page 304). Fill in
the knowns and then solve for the unknowns.]
Required
help_outline

Image Transcriptionclose

Cases A B (1) Fixed manufacturing overhead incurred (2) Variable manufacturing overhead incurred (3) $27,000 $10,511 $132,900 Denominator level in machine-hours 45,000 (4) Standard machine-hours allowed for actual output achieved (5) Fixed manufacturing overhead (per standard machine-hour) Flexible-Budget Data: (6) Variable manufacturing overhead (per standard machine-hour) Budgeted fixed manufacturing overhead (8) Budgeted variable manufacturing overhead Total budgeted manufacturing overhead 4,700 $ 2.10 $23,375 $130,500 Additional Data: (10) Standard variable manufacturing overhead allocated (11) Standard fixed manufacturing overhead allocated (12) $10,340 $19,975 $ 580 F $ 1,490 F $ 1,680 F Production-volume variance $ 457 U (13) Variable manufacturing overhead spending variance (14) Variable manufacturing overhead efficiency variance (15) Fixed manufacturing overhead spending variance (16) Actual machine-hours used *For standard machine-hours allowed for actual output produced. Fill in the blanks under each case. [Hint: Prepare a worksheet similar to that in Exhibit 8-4 (page 304). Fill in the knowns and then solve for the unknowns.] Required

fullscreen
check_circle

Expert Answer

Step 1

Spending Variance:

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

Efficiency Variance:

Efficiency variance is the variation 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 variation between the actual quantity manufactured and estimated quantity that should have been manufactured multiplied by budgeted overhead rate.

Step 2
Accounting homework question answer, step 2, image 1
fullscreen
Step 3
Accounting homework question answer, step 3, image 1
fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Cost Management

Related Accounting Q&A

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

Q: Discarding of a fully depreciated asset On June 15, 2017, Family Furniture discarded equipment that ...

A: Click to see the answer

question_answer

Q: Describe three reasons for an unfavorable direct manufacturing labor efficiency variance.

A: Direct Labor Efficiency Variance: Direct labor efficiency variance is the variation in the actual ti...

question_answer

Q: Provide one caveat that will affect whether a production-volume variance is a good measure of the ec...

A: Economic cost of unused capacity:The economic cost of unused capacity indicates the amount that coul...

question_answer

Q: Why is the distinction between paid-in capital andretained earnings important?

A: Click to see the answer

question_answer

Q: Jim Reed manages a fleet of utility trucks for a rural county government. He’s been in his job for 3...

A: State whether a gain or loss is recognized when sale of a fully depreciated asset as shown below: A ...

question_answer

Q: Calculating partial-year depreciation On February 28, 2017, Rural Tech Support purchased a copy mach...

A: Straight-line Depreciation:Under the straight-line method of depreciation, the same amount of deprec...

question_answer

Q: Indicate whether each of the following costs of an automobile manufacturer would be classified as di...

A: Indicate whether each of the given cost of an automobile manufacturer would be classified under dire...

question_answer

Q: At December 31, 2017, Ashley Co. has outstanding purchasecommitments for 150,000 gallons, at $6.20 p...

A: Describe the way in which the given situation is treated in the accounts:Compute the loss on purchas...

question_answer

Q: What is a lump-sum purchase, and how is it accounted for?

A: Click to see the answer