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

Question

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

Image Transcription

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

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