[The following information applies to the questions displayed below.] The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials, direct labor, and manufacturing (factory) overhead. The firm traces all direct costs to products, and it assigns overhead cost to products based on direct labor hours. The company budgeted $10,080 variable factory overhead cost, $93,600 for fixed factory overhead cost and 2,400 direct labor hours (its practical capacity) to manufacture 4,800 pairs of boots in March. The factory used 4,500 direct labor hours in March to manufacture 4,600 pairs of boots and spent $17,600 on variable overhead during the month. The actual fixed overhead cost incurred for the month was $97,400. Exercises 15-29 (Algo) Variable Factory Overhead Variances; Journal Entries [LO 15-2, 15-3] Required: 1. Compute the factory overhead flexible-budget variance, the factory overhead spending variance, and the Efficiency variance for variable factory overhead for March and state whether each variance is favorable (F) or unfavorable (U). 2. Provide the appropriate journal entry to record the variable overhead spending variance and a second entry to record the variable overhead efficiency variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs.
[The following information applies to the questions displayed below.] The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials, direct labor, and manufacturing (factory) overhead. The firm traces all direct costs to products, and it assigns overhead cost to products based on direct labor hours. The company budgeted $10,080 variable factory overhead cost, $93,600 for fixed factory overhead cost and 2,400 direct labor hours (its practical capacity) to manufacture 4,800 pairs of boots in March. The factory used 4,500 direct labor hours in March to manufacture 4,600 pairs of boots and spent $17,600 on variable overhead during the month. The actual fixed overhead cost incurred for the month was $97,400. Exercises 15-29 (Algo) Variable Factory Overhead Variances; Journal Entries [LO 15-2, 15-3] Required: 1. Compute the factory overhead flexible-budget variance, the factory overhead spending variance, and the Efficiency variance for variable factory overhead for March and state whether each variance is favorable (F) or unfavorable (U). 2. Provide the appropriate journal entry to record the variable overhead spending variance and a second entry to record the variable overhead efficiency variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs.
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 4CMA: JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT...
Related questions
Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
![[The following information applies to the questions displayed below.]
The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials,
direct labor, and manufacturing (factory) overhead. The firm traces all direct costs to products, and it assigns
overhead cost to products based on direct labor hours.
The company budgeted $10,080 variable factory overhead cost, $93,600 for fixed factory overhead cost and 2,400 direct
labor hours (its practical capacity) to manufacture 4,800 pairs of boots in March.
The factory used 4,500 direct labor hours in March to manufacture 4,600 pairs of boots and spent $17,600 on variable
overhead during the month. The actual fixed overhead cost incurred for the month was $97,400.
Exercises 15-29 (Algo) Variable Factory Overhead Variances; Journal Entries [LO 15-2, 15-3]
Required:
1. Compute the factory overhead flexible-budget variance, the factory overhead spending variance, and the efficiency variance for
variable factory overhead for March and state whether each variance is favorable (F) or unfavorable (U).
2. Provide the appropriate journal entry to record the variable overhead spending variance and a second entry to record the variable
overhead efficiency variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs.
Complete this question by entering your answers in the tabs below.
Required 2
Compute the factory overhead flexible-budget variance, the factory overhead spending variance, and the efficiency variance
for variable factory overhead for March and state whether each variance is favorable (F) or unfavorable (U).
Required 1
Spending variance
Efficiency variance
Variable overhead flexible-budget variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5a8808b0-4e11-4998-8240-0b8e938898d0%2F66513028-3bae-48f9-aafe-dcfdbed443af%2F85tpv4j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials,
direct labor, and manufacturing (factory) overhead. The firm traces all direct costs to products, and it assigns
overhead cost to products based on direct labor hours.
The company budgeted $10,080 variable factory overhead cost, $93,600 for fixed factory overhead cost and 2,400 direct
labor hours (its practical capacity) to manufacture 4,800 pairs of boots in March.
The factory used 4,500 direct labor hours in March to manufacture 4,600 pairs of boots and spent $17,600 on variable
overhead during the month. The actual fixed overhead cost incurred for the month was $97,400.
Exercises 15-29 (Algo) Variable Factory Overhead Variances; Journal Entries [LO 15-2, 15-3]
Required:
1. Compute the factory overhead flexible-budget variance, the factory overhead spending variance, and the efficiency variance for
variable factory overhead for March and state whether each variance is favorable (F) or unfavorable (U).
2. Provide the appropriate journal entry to record the variable overhead spending variance and a second entry to record the variable
overhead efficiency variance for March. Assume that the company uses a single account, Factory Overhead, to record overhead costs.
Complete this question by entering your answers in the tabs below.
Required 2
Compute the factory overhead flexible-budget variance, the factory overhead spending variance, and the efficiency variance
for variable factory overhead for March and state whether each variance is favorable (F) or unfavorable (U).
Required 1
Spending variance
Efficiency variance
Variable overhead flexible-budget variance
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
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.Recommended textbooks for you
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College