Factory Overhead Volume Variance Dvorak Company produced 1,900 units of product that required 3 standard hours per unit. The standard fixed overhead cost per unit is $2.50 per hour at 6,000 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. $
Q: Total Variable Overhead Variance Rath Company showed the following information for the year:…
A: 1.Standard hours allowed 60000 =15000*4 2.Applied variable overhead 225000=60000*3.75
Q: Bellingham Company produced 4,100 units of product that required 3 standard direct labor hours per…
A: Factory overhead volume variance = (Budgeted hours -Standard hours required) x Factory overhead…
Q: Tucker Company produced 8,900 units of product that required 3.25 standard hours per unit. The…
A: Actual units produced = 8,900 units Standard cost per unit = $4/hour Standard hours per unit = 3.25…
Q: Bellingham Company produced 15,400 units of product that required 4 standard direct labor hours per…
A: Variable factory overhead controllable variance = Actual Variable factory overhead - Standard…
Q: Factory Overhead Volume Variance Bellingham Company produced 3,700 units of product that required 5…
A: Answer - Fixed Overhead Volume variance = Budgeted fixed overhead - Fixed Overhead actually…
Q: Calculating the Total Overhead Variance Standish Company manufactures consumer products and provided…
A: Standard costing means where standard is set for various cost element and actual cost is then…
Q: Factory Overhead Controllable Variance Bellingham Company produced 5,600 units of product that…
A: answer Actual overhead expense =$106,440 budgeted overhead per unit = $4.60 * 4 = $18.4 standard…
Q: 1) Factory Overhead Volume Variance Bellingham Company produced 5,100 units of product that required…
A:
Q: Factory Overhead Cost Variances The following data relate to factory overhead cost for the…
A: Given: Actual : Variable factory overhead $285,200 Fixed factory overhead 70,000 Standard: 6,000…
Q: 10. Volume variance in units and in hours. Consider the following standard cost per unit based on a…
A: Note: As per our guidelines only the first three subparts must be answered. 10. Based on the given…
Q: Factory Overhead Controllable Variance Bellingham Company produced 5,800 units of product that…
A: Overhead Variance: The overhead variance is the difference arising between the real overhead…
Q: Bellingham Company produced 3,700 units of product that required 3 standard direct labor hours per…
A: Variance analysis is performed when the standard costing approach is adopted by the firm to estimate…
Q: Bellingham Company produces a product that requires eight standard pounds per unit. The standard…
A: Direct Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…
Q: Direct Labor Variances Bellingham Company produces a product that requires 2 standard hours per…
A:
Q: Direct labor variances Yealink Company produces a product that requires 2 standard direct labor…
A: Direct Labour Cost Variance :— It is the variance between actual cost and standard cost for actual…
Q: Tucker Company produced 4,200 units of product that required 2.20 standard hours per unit. The…
A: Standard variable overhead cist = no. Of units x standard variable overhead per unit x hour per unit…
Q: Direct Materials Variances Bellingham Company produces a product that requires 16 standard pounds…
A: Variance refers to a change between the expected value and the actual result. This term is usually…
Q: In producing product ZZ 14,800 direct labor hours were used at a rate of $8.20 per hour. The…
A:
Q: Factory Overhead Volume Variance Bellingham Company produced 3,700 units of product that required 3…
A: Standard variable factory overheads = Units produced × Standard hours per unit× Variable overhead…
Q: Bellingham Company produces a product that requires six standard pounds per unit. The standard price…
A: Variance refers to a change between the expected value and the actual result. This term is usually…
Q: Venneman Company produced 14,000 units of product that required 4 standard hours per unit. The…
A: The fixed overhead volume variance is the difference between the amount of fixed overhead actually…
Q: Factory Overhead Volume Variance Bellingham Company produced 1,400 units of product that required…
A: The term "fixed overhead volume variance" is the difference between the amount of fixed overhead…
Q: Bellingham Company produces a product that requires 15 standard pounds per unit. The standard price…
A:
Q: Direct Materials Variances Dvorak Company produces a product that requires 5 standard pounds per…
A: Variance refers to a change between the expected value and the actual result. This term is usually…
Q: Venneman Company produced 14,000 units of product that required 4 standard hours per unit. The…
A: Variable factory overhead controllable variance Standard variable overhead - Actual variable…
Q: Factory Overhead Cost Variances The following data relate to factory overhead cost for the…
A:
Q: actory Overhead Cost Variances he following data relate to factory overhead cost for the production…
A: Variable factory overhead Controllable Variance =145500 -5000*30= -$4500=$4500 Favorable
Q: Bellingham Company produces a product that requires five standard pounds per unit. The standard…
A: Direct Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…
Q: Direct Materials Variances Bellingham Company produces a product that requires nine standard pounds…
A: SOLUTION A DIRECT LABOR RATE VARIANCE…
Q: Factory Overhead Cost Variances The following data relate to factory overhead cost for the…
A:
Q: Bellingham Company produced 6,900 units of product that required 1.5 standard direct labor hours per…
A: Standard labor overheads required for actual output = Units produced x standard direct labor hours…
Q: The following data relate to factory overhead cost for the production of 6,000 computers: Actual:…
A: Variable Factory Overhead Controllable variance = Actual Variable Factory Overhead - Standard…
Q: Labor Rate and Efficiency Variances Tico Inc. produces plastic bottles. Each bottle has a standard…
A: Labor rate variance = (SR - AR)* AH = ($15 - $17) * 25600 = $51,200 Unfavorable
Q: Factory Overhead Volume Variance Dvorak Company produced 2,400 units of product that required 5.5…
A: Fixed overhead volume variance = Absorbed fixed overhead - Budgeted fixed overhead Absorbed fixed…
Q: Bellingham Company produces a product that requires 4 standard direct labor hours per unit at a…
A: Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked Labor time…
Q: Bellingham Company produces a product that requires 3 standard direct labor hours per unit at a…
A: Direct Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked…
Q: Factory Overhead Cost Variances The following data relate to factory overhead cost for the…
A: Overhead means indirect costs incurred in the production and manufacturing of goods. Overhead cost…
Q: Calculating labor variances Martin, Inc. manufactures lead crystal glasses. The standard direct…
A: Direct labor cost variance = ( standard rate - actual rate ) x actual labor hours.
Q: Factory Overhead Volume Variance
A: Factory Overhead Volume Variance The fixed overhead volume variance is the difference between the…
Q: Direct Materials Variances Bellingham Company produces a product that requires 9 standard pounds per…
A: Variance is referred as the difference. In calculating price variance, a difference in the standard…
Q: The following data relate to factory overhead cost for the production of 10,000 computers: Actual:…
A: Variable factory overhead rate = Total overhead rate - Fixed factory overhead rate = $25 - $6 = $19…
Q: Venneman Company produces a product that requires 14 standard pounds per unit. The standard price is…
A: Standard quantity=Standard pounds×Actual units=14×3,500=49,000
Q: Direct Labor Variances Dvorak Company produces a product that requires 3 standard hours per unit at…
A: Direct Labour cost variance means when there is a difference between standard cost of labour and…
Q: Factory Overhead Cost Variances The following data relate to factory overhead cost for the…
A: GIVEN Factory Overhead Cost Variances The following data relate to factory overhead cost for…
Q: Factory overhead cost variances The following data relate to factory overhead cost for the…
A:
Q: The following data relate to factory overhead cost for the production of 4,000 computers: Actual:…
A: Variable factory overhead $ 97000 Fixed Factory overhead $ 30,000 Standard overhead…
Q: Factory Overhead Cost Variances The following data relate to factory overhead cost for the…
A: Variable factory overhead controllable variance = Actual Variable factory overhead - Variable…
Q: Direct Labor Variances The following data relate to labor cost for production of 5,900 cellular…
A: Rate Variance = ( Standard Rate - Actual Rate ) x Actual Hours Time Variance = ( Standard Hours for…
Q: Direct Materials Variances Bellingham Company produces a product that requires 11 standard pounds…
A: The variance is the difference between the actual data and standard output of the production.…
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- Kavallia Company set a standard cost for one item at 328,000; allowable deviation is 14,500. Actual costs for the past six months are as follows: Required: 1. Calculate the variance from standard for each month. Which months should be investigated? 2. What if the company uses a two-part rule for investigating variances? The allowable deviation is the lesser of 4 percent of the standard amount or 14,500. Now which months should be investigated?Direct materials variances Bellingham Company produces a product that requires 2.5 standard pounds per unit. The standard price is 3.75 per pound. If 15,000 units used 36,000 pounds, which were purchased at 4.00 per pound, what is the direct materials (A) price variance, (B) quantity variance, and (C) cost variance?Calculating factory overhead: two variances Munoz Manufacturing Co. normally produces 10,000 units of product X each month. Each unit requires 2 hours of direct labor, and factory overhead is applied on a direct labor hour basis. Fixed costs and variable costs in factory overhead at the normal capacity are 2.50 and 1.50 per direct labor hour, respectively. Cost and production data for May follow: a. Calculate the flexible-budget variance. b. Calculate the production-volume variance. c. Was the total factory overhead under- or overapplied? By what amount?
- Calculating factory overhead: two variances Monrovia Manufacturing Inc. normally produces 10,000 units of product A each month. Each unit requires 4 hours of direct labor, and factory overhead is applied on a direct labor hour basis. Fixed costs and variable costs in factory overhead at the normal capacity are 10 and 5 per unit, respectively. Cost and production data for June follow: a. Calculate the flexible-budget variance. b. Calculate the production-volume variance. c. Was the total factory overhead under- or overapplied? By what amount?A manufacturer planned to use $45 of variable overhead per unit produced, but in the most recent period, it actually used $47 of variable overhead per unit produced. During this same period, the company planned to produce 200 units but actually produced 220 units. What is the variable overhead spending variance?In all of the exercises involving variances, use F and U to designate favorable and unfavorable variances, respectively. E8-1 through E8-5 use the following data: The standard operating capacity of Tecate Manufacturing Co. is 1,000 units. A detailed study of the manufacturing data relating to the standard production cost of one product revealed the following: 1. Two pounds of materials are needed to produce one unit. 2. Standard unit cost of materials is 8 per pound. 3. It takes one hour of labor to produce one unit. 4. Standard labor rate is 10 per hour. 5. Standard overhead (all variable) for this volume is 4,000. Each case in E8-1 through E8-5 requires the following: a. Set up a standard cost summary showing the standard unit cost. b. Analyze the variances for materials and labor. c. Make journal entries to record the transfer to Work in Process of: 1. Materials costs 2. Labor costs 3. Overhead costs (When making these entries, include the variances.) d. Prepare the journal entry to record the transfer of costs to the finished goods account. Standard unit cost; variance analysis; journal entries 1,000 units were started and finished. Case 1: All prices and quantities for the cost elements are standard, except for materials cost, which is 8.50 per pound. Case 2: All prices and quantities for the cost elements are standard, except that 1,900 lb of materials were used.
- Standard cost summary; materials and labor cost variances Perkins Processors Inc. produces an average of 10,000 units each month. The factory standards are 20,000 hours of direct labor and 10,000 pounds of materials for this volume. The standard cost of direct labor is 9.00 per hour, and the standard cost of materials is 4.00 per pound. The standard factory overhead at this level of production is 20,000. During the current month the production and cost reports reflected the following information: On the basis of this information: 1. Prepare a standard cost summary. 2. Calculate the materials (use the materials purchase price variance) and labor cost variances, and indicate whether they are favorable or unfavorable, using the formulas on pages 421422 and 424.Direct materials and direct labor variance analysis Lenni Clothing Co. manufactures clothing in a small manufacturing facility. Manufacturing has 25 employees. Each employee presently provides 40 hours of productive labor per week. Information about a production week is as follows: Instructions Determine (A) the standard cost per unit for direct materials and direct labor; (B) the price variance, quantity variance, and total direct materials cost variance; and (C) the rate variance, time variance, and total direct labor cost variance.The normal capacity of a manufacturing plant is 30,000 direct labor hours or 20,000 units per month. Standard fixed costs are 6,000, and variable costs are 12,000. Data for two months follow: For each month, make a single journal entry to charge overhead to Work in Process, to close Factory Overhead, and to record variances. Indicate the types of variances and state whether each is favorable or unfavorable. (Hint: You must first compute the flexible-budget and production-volume variances.)
- Madison Company uses the following rule to determine whether direct labor efficiency variances ought to be investigated. A direct labor efficiency variance will be investigated anytime the amount exceeds the lesser of 12,000 or 10 percent of the standard labor cost. Reports for the past five weeks provided the following information: Required: 1. Using the rule provided, identify the cases that will be investigated. 2. Suppose that investigation reveals that the cause of an unfavorable direct labor efficiency variance is the use of lower quality direct materials than are usually used. Who is responsible? What corrective action would likely be taken? 3. Suppose that investigation reveals that the cause of a significant favorable direct labor efficiency variance is attributable to a new approach to manufacturing that takes less labor time but causes more direct materials waste. Upon examining the direct materials usage variance, it is discovered to be unfavorable, and it is larger than the favorable direct labor efficiency variance. Who is responsible? What action should be taken? How would your answer change if the unfavorable variance were smaller than the favorable?At the end of the period, the factory overhead account has a credit balance of 10,000. (a) Is the total factory cost variance favorable or unfavorable? (b) Are the controllable and volume variances favorable or unfavorable?The management of Golding Company has determined that the cost to investigate a variance produced by its standard cost system ranges from 2,000 to 3,000. If a problem is discovered, the average benefit from taking corrective action usually outweighs the cost of investigation. Past experience from the investigation of variances has revealed that corrective action is rarely needed for deviations within 8% of the standard cost. Golding produces a single product, which has the following standards for materials and labor: Actual production for the past 3 months follows, with the associated actual usage and costs for materials and labor. There were no beginning or ending raw materials inventories. Required: 1. What upper and lower control limits would you use for materials variances? For labor variances? 2. Compute the materials and labor variances for April, May, and June. Identify those that would require investigation by comparing each variance to the amount of the limit computed in Requirement 1. Compute the actual percentage deviation from standard. Round all unit costs to four decimal places. Round variances to the nearest dollar. Round variance rates to three decimal places so that percentages will show to one decimal place. 3. CONCEPTUAL CONNECTION Let the horizontal axis be time and the vertical axis be variances measured as a percentage deviation from standard. Draw horizontal lines that identify upper and lower control limits. Plot the labor and material variances for April, May, and June. Prepare a separate graph for each type of variance. Explain how you would use these graphs (called control charts) to assist your analysis of variances.