Tipton Company manufactures shirts. During June, Tipton made 1,200 shirts but had budgeted production at 1,400 shirts. Tipton gathered the following additional data: Variable overhead cost standard $0.50 per DLHr Direct labor efficiency standard 2.00 DLHr per shirt Actual amount of direct labor hours 2,520 DLHr Actual cost of variable overhead $1,512 Fixed overhead cost standard $0.25 per DLHr Budgeted fixed overhead $700 Actual cost of fixed overhead $750 13. Calculate the variable overhead cost variance. Select the formula, then enter the amounts and compute the cost variance for variable overhead (VOH) and identify whether the variance is favorable (F) or unfavorable (U). ( - ) × = VOH Cost Variance ( - ) × = 14. Calculate the variable overhead efficiency variance. Select the formula, then enter the amounts and compute the efficiency variance for variable overhead and identify whether the variance is favorable (F) or unfavorable (U). ( - ) × = VOH Efficiency Variance ( - ) × = 15. Calculate the total variable overhead variance The total variable overhead variance is . 16. Calculate the fixed overhead cost variance Select the formula, then enter the amounts and compute the cost variance for fixed overhead (FOH) and identify whether the variance is favorable (F) or unfavorable (U). - = Fixed Overhead Cost Variance - = 17. Calculate the fixed overhead volume variance First, select the formula, then enter the amounts and compute the fixed overhead allocated to production. (Abbreviations used: SQ = standard quantity, AO = actual output.) × = Overhead allocated to production × = Now, select the formula, then enter the amounts and compute the fixed overhead volume variance and identify whether the variance is favorable (F) or unfavorable (U). - = Fixed Overhead Volume Variance - = 18. Calculate the total fixed overhead variance. The total fixed overhead variance is

Tipton Company manufactures shirts. During June, Tipton made 1,200 shirts but had budgeted production at 1,400 shirts. Tipton gathered the following additional data: Variable overhead cost standard $0.50 per DLHr Direct labor efficiency standard 2.00 DLHr per shirt Actual amount of direct labor hours 2,520 DLHr Actual cost of variable overhead $1,512 Fixed overhead cost standard $0.25 per DLHr Budgeted fixed overhead $700 Actual cost of fixed overhead $750 13. Calculate the variable overhead cost variance. Select the formula, then enter the amounts and compute the cost variance for variable overhead (VOH) and identify whether the variance is favorable (F) or unfavorable (U). ( - ) × = VOH Cost Variance ( - ) × = 14. Calculate the variable overhead efficiency variance. Select the formula, then enter the amounts and compute the efficiency variance for variable overhead and identify whether the variance is favorable (F) or unfavorable (U). ( - ) × = VOH Efficiency Variance ( - ) × = 15. Calculate the total variable overhead variance The total variable overhead variance is . 16. Calculate the fixed overhead cost variance Select the formula, then enter the amounts and compute the cost variance for fixed overhead (FOH) and identify whether the variance is favorable (F) or unfavorable (U). - = Fixed Overhead Cost Variance - = 17. Calculate the fixed overhead volume variance First, select the formula, then enter the amounts and compute the fixed overhead allocated to production. (Abbreviations used: SQ = standard quantity, AO = actual output.) × = Overhead allocated to production × = Now, select the formula, then enter the amounts and compute the fixed overhead volume variance and identify whether the variance is favorable (F) or unfavorable (U). - = Fixed Overhead Volume Variance - = 18. Calculate the total fixed overhead variance. The total fixed overhead variance is

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 72P: Moleno Company produces a single product and uses a standard cost system. The normal production...

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Related questions

Question

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Tipton Company manufactures shirts. During June, Tipton made 1,200

shirts but had budgeted production at 1,400 shirts. Tipton gathered the following additional data:

Variable overhead cost standard

$0.50 per DLHr

Direct labor efficiency standard

2.00 DLHr per shirt

Actual amount of direct labor hours

2,520 DLHr

Actual cost of variable overhead

$1,512

Fixed overhead cost standard

$0.25 per DLHr

Budgeted fixed overhead

$700

Actual cost of fixed overhead

$750

13. Calculate the variable overhead cost variance.

Select the formula, then enter the amounts and compute the cost variance for variable overhead (VOH) and identify whether the variance is favorable (F) or unfavorable (U).

(

)

VOH Cost Variance

(

)

14. Calculate the variable overhead efficiency variance.

Select the formula, then enter the amounts and compute the efficiency variance for variable overhead and identify whether the variance is favorable (F) or unfavorable (U).

(

)

VOH Efficiency Variance

(

)

15. Calculate the total variable overhead variance

The total variable overhead variance is

16. Calculate the fixed overhead cost variance

Select the formula, then enter the amounts and compute the cost variance for fixed overhead (FOH) and identify whether the variance is favorable (F) or unfavorable (U).

Fixed Overhead Cost Variance

17. Calculate the fixed overhead volume variance

First, select the formula, then enter the amounts and compute the fixed overhead allocated to production. (Abbreviations used: SQ = standard quantity, AO = actual output.)

	×		=	Overhead allocated to production
	×		=

Now, select the formula, then enter the amounts and compute the fixed overhead volume variance and identify whether the variance is favorable (F) or unfavorable (U).

Fixed Overhead Volume Variance

18. Calculate the total fixed overhead variance.

The total fixed overhead variance is

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