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Description: If actual fixed overhead was P54,000 and there was a P1,300 unfavorable spending variance and a P1,200 unfavorable volume variance,budgeted fixed overhead must have been P

Business

Accounting

If actual fixed overhead was P54,000 and there was a P1,300 unfavorable spending variance and a P1,200 unfavorable volume variance, budgeted fixed overhead must have been P

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter23: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 9DQ: At the end of the period, the factory overhead account has a credit balance of 10,000. (a) Is the...

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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?
Marten Company has a cost-benefit policy to investigate any variance that is greater than 1,000 or 10% of budget, whichever is larger. Actual results for the previous month indicate the following: The company should investigate: a. neither the materials variance nor the labor variance. b. the materials variance only. c. the labor variance only. d. both the materials variance and the labor variance.
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.
At the end of the current fiscal year, the trial balance of Big Apple Inc. revealed the following debit (unfavorable) balances: Flexible-Budget Variance — $2,000 Production–Volume Variance — $75,000 What conclusions can be drawn from these two variances?
If actual fixed overhead was $54,000 and there was a $1,300 unfavorable spending variance and a $1,000 unfavorable volume variance, budgeted fixed overhead must have been a.$50,300. b.$53,000. c.$56,300. d.$52,700.
If actual fixed overhead was $54,000 and there was a $1,300 unfavorable spending variance and a $1,000 unfavorable volume variance, budgeted fixed overhead must have been (1 Point) $50,300. $53,000. $56,300. $52,700.
1. Acme had a P22,000 favorable fixed overhead budget variance, a P15,000 unfavorable variable overhead spending variance, and P2,000 total overapplied overhead. The volume variance was A. P13,000 overapplied C. P5,000 overapplied B. P13,000 underapplied D. P5,000 underapplied 2. Aldorp had a P10,000 unfavorable fixed overhead budget variance, a P6,000 unfavorable variable overhead spending variance, and a P2,000 favorable volume variance. The total overhead was A. P14,000 overapplied C. P18,000 overapplied B. P14,000 underapplied D. P18,000 underapplied
Zyan had a $2,000 favorable volume variance, a $7,000 unfavorable variable overhead spending variance, and $3,000 total underapplied overhead. The fixed overhead budget variance is? (kindly indicate if its unfavorable or favorable; two decimal places if any)
1. ABC had a P28,000 favorable volume variance, a P25,000 unfavorable variable overhead spending variance, and P12,000 total overapplied overhead. The fixed overhead budget variance was A. P9,000 favorable C. P9,000 unfavorable B. P26,000 favorable D. P26,000 unfavorable 2. Bacon had a P28,000 unfavorable volume variance, a P5,000 unfavorable fixed overhead budget variance, and P22,000 total underapplied overhead. The variable overhead spending variance was A. P11,000 favorable C. P11,000 unfavorable B. P1,000 favorable D. P23,000 unfavorable
E6. when the fixed overhead rate is based on budgeted production volume. total over- or underapplied fixed manufacturing overhead is the combination of the: a) fixed overhead spending variance and the fixed overhead volume variance b) the fixed overhead volune variance and the fixed overhead capacity variance c) fixed overhead spending variance and the fixed overhead capacity variance d) planned xpaacity variance and unplanned capacity variance
QUESTIONS If the actual fixed costs total $ 167000 with the actual number of units produced equal to 120 , and the budgeted fixed costs were $ 162000 and the budgeted units to be produced are 150 , and the hours per unit are 4 and total hours are 600 . What is the fixed costs rate variance , production volume variance the flexible budget variance and the over / under allocated fixed manufacturing overhead variance ? Indicate whether the variances are favourable or unfavourable .
Fixed overhead was budgeted at $200,000, and 25,000 direct labor hours were budgeted. If the fixed overhead volume variance was $8,000 favorable and the fixed overhead spending variance was $6,000 unfavorable, fixed overhead applied must be $208,000. $206,000. $202,000. $194,000.