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Camelback Industries operates a delivery service for local restaurants, delivering call-in, to-go meals for restaurant customers. Variable overhead costs are applied at the budgeted rate of $12 per driving hour. The typical round trip takes a driver 30 minutes to complete. Actual results for March follow. Number of round trips run: 1,530 Hours of delivery time: 1,190 Variable overhead cost incurred: $3,600 Camelback uses flexible budgets and variance analysis to monitor performance. Required: A. Prepare a flexible-budget performance report that shows (1) actual variable overhead, (2) the amount of variable overhead that should have been incurred for the number of round trips taken, and (3) the variance between these amounts. B. Compute the company's variable-overhead spending and efficiency variances, (Indicate the effect of each variance by selecting

Camelback Industries operates a delivery service for local restaurants, delivering call-in, to-go meals for restaurant customers. Variable overhead costs are applied at the budgeted rate of $12 per driving hour. The typical round trip takes a driver 30 minutes to complete. Actual results for March follow. Number of round trips run: 1,530 Hours of delivery time: 1,190 Variable overhead cost incurred: $3,600 Camelback uses flexible budgets and variance analysis to monitor performance. Required: A. Prepare a flexible-budget performance report that shows (1) actual variable overhead, (2) the amount of variable overhead that should have been incurred for the number of round trips taken, and (3) the variance between these amounts. B. Compute the company's variable-overhead spending and efficiency variances, (Indicate the effect of each variance by selecting

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 14P: Fargo Co. manufactures products in batches of 100 units per batch. The company uses a standard cost...
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Camelback Industries operates a delivery service for local restaurants, delivering call-in, to-go meals for restaurant customers. Variable overhead costs are applied at the budgeted rate of $12 per driving hour. The typical round trip takes a driver 30 minutes to complete. Actual results for March follow. Number of round trips run: 1,530 Hours of delivery time: 1,190 Variable overhead cost incurred: $3,600 Camelback uses flexible budgets and variance analysis to monitor performance. Required: A. Prepare a flexible-budget performance report that shows (1) actual variable overhead, (2) the amount of variable overhead that should have been incurred for the number of round trips taken, and (3) the variance between these amounts. B. Compute the company's variable-overhead spending and efficiency variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).) A. Budgeted variable overhead Variance $ B. Spending variance Efficiency variance
Transcribed Image Text:Camelback Industries operates a delivery service for local restaurants, delivering call-in, to-go meals for restaurant customers. Variable overhead costs are applied at the budgeted rate of $12 per driving hour. The typical round trip takes a driver 30 minutes to complete. Actual results for March follow. Number of round trips run: 1,530 Hours of delivery time: 1,190 Variable overhead cost incurred: $3,600 Camelback uses flexible budgets and variance analysis to monitor performance. Required: A. Prepare a flexible-budget performance report that shows (1) actual variable overhead, (2) the amount of variable overhead that should have been incurred for the number of round trips taken, and (3) the variance between these amounts. B. Compute the company's variable-overhead spending and efficiency variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).) A. Budgeted variable overhead Variance $ B. Spending variance Efficiency variance
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