Homework Help is Here – Start Your Trial Now!
Business
Accounting
Factory Overhead Variance Corrections The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 60,000 units of product are as follows: Variable factory overhead Fixed factory overhead Standard: 91,000 hrs. at $6.00 ($3.50 for variable factory overhead) Actual: Productive capacity at 100% of normal was 90,100 hours, and the factory overhead cost budgeted at the level of 91,000 standard hours was $542,700. Based on these data, the chief cost accountant prepared the following variance analysis Variable factory overhead controllable variance: Actual variable factory overhead cost incurred Budgeted variable factory overhead for 91,000 hours Variance-favorable Fixed factory overhead volume variance: Normal productive capacity at 100% Standard for amount produced Productive capacity not used Standard variable factory overhead rate Variance-unfavorable $315,300 318,500 S $315,300 226,000 546,000 90,100 hrs. 91,000 900 hrs. x $6.00 5,400 Total factory overhead cost variance-unfavorable $2,200 Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. Variance Variable Factory Overhead Controllable Variance Fixed Factory Overhead Volume Variance Total Factory Overhead Cost Variance Amount $(3,200) Favorable/Unfavorable Favorable Favorable Favorable V - V - V

Factory Overhead Variance Corrections The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 60,000 units of product are as follows: Variable factory overhead Fixed factory overhead Standard: 91,000 hrs. at $6.00 ($3.50 for variable factory overhead) Actual: Productive capacity at 100% of normal was 90,100 hours, and the factory overhead cost budgeted at the level of 91,000 standard hours was $542,700. Based on these data, the chief cost accountant prepared the following variance analysis Variable factory overhead controllable variance: Actual variable factory overhead cost incurred Budgeted variable factory overhead for 91,000 hours Variance-favorable Fixed factory overhead volume variance: Normal productive capacity at 100% Standard for amount produced Productive capacity not used Standard variable factory overhead rate Variance-unfavorable $315,300 318,500 S $315,300 226,000 546,000 90,100 hrs. 91,000 900 hrs. x $6.00 5,400 Total factory overhead cost variance-unfavorable $2,200 Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. Variance Variable Factory Overhead Controllable Variance Fixed Factory Overhead Volume Variance Total Factory Overhead Cost Variance Amount $(3,200) Favorable/Unfavorable Favorable Favorable Favorable V - V - V

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 15E: Factory overhead cost variances The following data relate to factory overhead cost for the...
See similar textbooks
icon
Related questions
Topic Video
Question

Please do not give solution in image format thanku 

Factory Overhead Variance Corrections The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 60,000 units of product are as follows: Actual: Variable factory overhead $315,300 226,000 Fixed factory overhead Standard: 91,000 hrs. at $6.00 ($3.50 for variable factory overhead) 546,000 Productive capacity at 100% of normal was 90,100 hours, and the factory overhead cost budgeted at the level of 91,000 standard hours was $542,700. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred Budgeted variable factory overhead for 91,000 hours Variance-favorable Fixed factory overhead volume variance: Normal productive capacity at 100% Standard for amount produced Productive capacity not used Standard variable factory overhead rate Variance-unfavorable Variance $315,300 318,500 Variable Factory Overhead Controllable Variance Fixed Factory Overhead Volume Variance Total Factory Overhead Cost Variance 90,100 hrs. 91,000 900 hrs. x $6.00 5,400 $2,200 Total factory overhead cost variance-unfavorable Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. $(3,200) Amount Favorable/Unfavorable Favorable Favorable Favorable
Transcribed Image Text:Factory Overhead Variance Corrections The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 60,000 units of product are as follows: Actual: Variable factory overhead $315,300 226,000 Fixed factory overhead Standard: 91,000 hrs. at $6.00 ($3.50 for variable factory overhead) 546,000 Productive capacity at 100% of normal was 90,100 hours, and the factory overhead cost budgeted at the level of 91,000 standard hours was $542,700. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred Budgeted variable factory overhead for 91,000 hours Variance-favorable Fixed factory overhead volume variance: Normal productive capacity at 100% Standard for amount produced Productive capacity not used Standard variable factory overhead rate Variance-unfavorable Variance $315,300 318,500 Variable Factory Overhead Controllable Variance Fixed Factory Overhead Volume Variance Total Factory Overhead Cost Variance 90,100 hrs. 91,000 900 hrs. x $6.00 5,400 $2,200 Total factory overhead cost variance-unfavorable Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. $(3,200) Amount Favorable/Unfavorable Favorable Favorable Favorable
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS