Required 1Required 2Calculate the spending variances for March. (Indicate the effect of each variance by selecting "F" for favunfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)FAB CorporationSpending VariancesFor the Month Ended March 31UtilitiesMaintenanceSuppliesIndirect laborDepreciationTotalRequired 1Required 2 You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president hasasked that you review the company's costing system and "do what you can to help us get better control of our manufacturingoverhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would bean excellent first step in overhead planning and control.After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March:ActualCost inMarchCost Formula$20,600 + $0.10 per machine-hour$40,000 + $1.60 per machine-hour$0.30 per machine-hour$24,200$ 78,100$8,400$ 149,600$ 71,500UtilitiesMaintenanceSuppliesIndirect labor $130,000 + $0.70 per machine-hourDepreciation$70,000During March, the company worked 26,000 machine-hours and produced 15,000 units. The company had originally planned to work30,000 machine-hours during March.Required:1. Calculate the activity variances for March.2. Calculate the spending variances for March.Complete this question by entering your answers in the tabs below.Required 1Required 2

1. FAB CORPORATION Activity Variances Flexible Budger Planning Budget Activity…

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Accounting

Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March.

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 23E: (Appendix) Calculating factory overhead: three variances Using the data given in E8-17, calculate...

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You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost in March Cost Formula $20,600 + $0.10 per machine-hour $40,000 + $1.60 per machine-hour $0.30 per machine-hour $24,200 $ 78,100 $8,400 $ 149,600 $ 71,500 Utilities Maintenance Supplies Indirect labor $130,000 + $0.70 per machine-hour Depreciation $70,000 During March, the company worked 26,000 machine-hours and produced 15,000 units. The company had originally planned to work 30,000 machine-hours during March.…
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president asked you to review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find the company has never used a flexible budget, and you suggest preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you estimated the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,000+ $0.19 per machine-hour $38,500+ $1.30 per machine-hour $0.90 per machine-hour During March, the company worked 20,000 machine-hours and produced 14,000 units. The company originally planned to work 22,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March. $94,800+ $1.70 per…
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $20,600 + $0.10 per machine-hour $40,000+ $1.60 per machine-hour $0.30 per machine-hour $130,000 $0.70 per machine-hour $70,000 During March, the company worked 26,000 machine-hours and produced 15,000 units. The company had originally planned to work 30,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2.…
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies. Indirect labor Depreciation Cost Formula $16,800+ $0.17 per machine-hour $38,600+ $1.90 per machine-hour $0.40 per machine-hour $94,700+ $2.10 per machine-hour $67,700 Actual Cost in March $ 22,850 $ 79,900 $9,800 $ 148, 100 $ 69,400 During March, the company worked 23,000 machine-hours and produced 17,000 units. The company had originally planned to work 25,000 machine-hours during March.…
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) FAB Corporation Activity Variances For the Month Ended March 31 $ 20,440 Utilities Maintenance Supplies Indirect labor Depreciation Total
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost in March $ 21,670 $ 66,600 $ 6,600 Utilities Maintenance Supplies Indirect labor $94,700+ $1.90 per machine-hour Depreciation $68,000 Cost Formula $0.21 per machine-hour $2.00 per machine-hour $16,300+ $38,800 $0.40 per machine-hour During March, the company worked 15,000 machine-hours and produced 9,000 units. The company had originally planned to work 17,000 machine-hours during March. Required: 1. Calculate…
Required 1 Required 2 Calculate the activity variances for March. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Utilities Maintenance Supplies Indirect labor Depreciation Total FAB Corporation Activity Variances For the Month Ended March 31 Show Transcribed Text Required 1 Required 2 FAB Corporation Spending Variances For the Month Ended March 31
You have Just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step In overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost in March 24 Cost Formula Utilities $20, 600 + se.10 per machine-hour $40,000 + $1.60 per machine-hour $0.30 per machine-hour $130,000 + $e.70 per machine-hour $70,000 24, 200 24 Maintenance 78,100 24 Supplies Indirect labor 8,400 $ 149,600 24 Depreciation 71,500 During March, the company worked 26,000 machine-hours and produced 15,000 units. The company had originally planned to work 30,000 machine-hours during…
Anker Company had the data below for its most recent year, ended December 31: Required: Prepare a performance report that shows the variances on an item-by-item basis.
Using variance analysis and interpretation Last year, Endicott Corp. adopted a standard cost system. Labor standards were set on the basis of time studies and prevailing wage rates. Materials standards were determined from materials specifications and the prices then in effect. On June 30, the end of the current fiscal year, a partial trial balance revealed the following: Standards set at the beginning of the year have remained unchanged. All inventories are priced at standard cost. What conclusions can be drawn from each of the four variances shown in Endicotts trial balance?
(Appendix) Calculating factory overhead: three variances Using the data given in E8-17, calculate the following overhead variances: a. Spending variance. b. Production-volume variance. c. Efficiency variance. d. Was the factory overhead under- or overapplied? By what amount? In all problems involving variances, use F and U to indicate favorable and unfavorable variances, respectively.
Income statement indicating standard cost variances The following data were taken from the records of Griggs Company for December: Prepare an income statement for presentation to management.