The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materiais, 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 $10,045 variable factory overhead cost, 588,150 for fixed factory overhead cost and 2,050 direct labor hours (its practical capacity) to manufacture 4,500 pairs of boots in March The factory used 3,800 direct labor hours in March to manufacture 3,900 pairs of boots and spent $16.900 on variable overhead during the month. The actual fixed overhead cost incurred for the month was $91,250 The Platter Valley factory of Bybee Industries uses a two-variance analysis of the total factory overhead variance Required: 1. Compute the total flexible-budget variance for overhead and the production volume variance for March What was the total factory overhead cost variance for March? Indicate whether each variance is favorable (F) or unfavorable (U) 2. Determine the three components of the total flexible budget variance for overhead &e, the variable overhead spending variance. the variable overhead efficiency variance, and the fixed overhead spending variance), in addition, show the production volume variance for March indicate whether each variance is favorable (F) or unfavorable (U)
The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materiais, 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 $10,045 variable factory overhead cost, 588,150 for fixed factory overhead cost and 2,050 direct labor hours (its practical capacity) to manufacture 4,500 pairs of boots in March The factory used 3,800 direct labor hours in March to manufacture 3,900 pairs of boots and spent $16.900 on variable overhead during the month. The actual fixed overhead cost incurred for the month was $91,250 The Platter Valley factory of Bybee Industries uses a two-variance analysis of the total factory overhead variance Required: 1. Compute the total flexible-budget variance for overhead and the production volume variance for March What was the total factory overhead cost variance for March? Indicate whether each variance is favorable (F) or unfavorable (U) 2. Determine the three components of the total flexible budget variance for overhead &e, the variable overhead spending variance. the variable overhead efficiency variance, and the fixed overhead spending variance), in addition, show the production volume variance for March indicate whether each variance is favorable (F) or unfavorable (U)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter9: Profit Planning And Flexible Budgets
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[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 $10,045 variable factory overhead cost, $88,150 for fixed factory overhead cost and 2,050 direct
labor hours (its practical capacity) to manufacture 4,100 pairs of boots in March
The factory used 3,800 direct labor hours in March to manufacture 3,900 pairs of boots and spent $16,900 on variable
overhead during the month. The actual fixed overhead cost incurred for the month was $91,250
The Platter Valley factory of Bybee Industries uses a two variance analysis of the total factory overhead vanance
Required.
1. Compute the total flexible-budget variance for overhead and the production volume variance for March What was the total factory
overhead cost variance for March? Indicate whether each variance is favorable (F) or unfavorable (U)
2. Determine the three components of the total flexible budget variance for overhead (ie the variable overhead spending variance
the variable overhead efficiency variance, and the fixed overhead spending variance), in addition, show the production volume
variance for March indicate whether each variance is favorable (F) or unfavorable (U)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5a8808b0-4e11-4998-8240-0b8e938898d0%2F1feaa08b-bfa7-491e-8c25-ca9af49032c9%2Fal6eu5h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[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 $10,045 variable factory overhead cost, $88,150 for fixed factory overhead cost and 2,050 direct
labor hours (its practical capacity) to manufacture 4,100 pairs of boots in March
The factory used 3,800 direct labor hours in March to manufacture 3,900 pairs of boots and spent $16,900 on variable
overhead during the month. The actual fixed overhead cost incurred for the month was $91,250
The Platter Valley factory of Bybee Industries uses a two variance analysis of the total factory overhead vanance
Required.
1. Compute the total flexible-budget variance for overhead and the production volume variance for March What was the total factory
overhead cost variance for March? Indicate whether each variance is favorable (F) or unfavorable (U)
2. Determine the three components of the total flexible budget variance for overhead (ie the variable overhead spending variance
the variable overhead efficiency variance, and the fixed overhead spending variance), in addition, show the production volume
variance for March indicate whether each variance is favorable (F) or unfavorable (U)
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