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Volte Corporation produces small electric appliances. The following information is available for the most recent period of operations: Standard variable overhead rate Actual output Actual direct labor-hours used Standard direct labor-hours Actual direct labor cost incurred i Standard direct labor-hour rate Actual variable overhead incurred Actual units sold 20,280 units. Volte never has any work-in-process inventories and began the year with no finished goods inventory. Req A and B $ 2.60 per direct labor-hour 25,300 units 34,700 1.5 per unit Required: a. and b. What was the variable overhead price variance and the variable overhead efficiency variance for the period? c. Assume that Volte writes off all variances to Cost of Goods Sold. Prepare the entries Volte would make to record and close out the variances. d. Assume that Volte prorates all variances to appropriate accounts. Prepare the entries Volte would make to record and close out the variances. Complete this question by entering your answers in the tabs below. Reg D $ 839,000 Req C What was the variable overhead price variance and the variable overhead efficiency variance for the period? Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Variable overhead price variance Variatile overhead efficiency variance $26 $ 97,500 and Reg 0 >

Volte Corporation produces small electric appliances. The following information is available for the most recent period of operations: Standard variable overhead rate Actual output Actual direct labor-hours used Standard direct labor-hours Actual direct labor cost incurred i Standard direct labor-hour rate Actual variable overhead incurred Actual units sold 20,280 units. Volte never has any work-in-process inventories and began the year with no finished goods inventory. Req A and B $ 2.60 per direct labor-hour 25,300 units 34,700 1.5 per unit Required: a. and b. What was the variable overhead price variance and the variable overhead efficiency variance for the period? c. Assume that Volte writes off all variances to Cost of Goods Sold. Prepare the entries Volte would make to record and close out the variances. d. Assume that Volte prorates all variances to appropriate accounts. Prepare the entries Volte would make to record and close out the variances. Complete this question by entering your answers in the tabs below. Reg D $ 839,000 Req C What was the variable overhead price variance and the variable overhead efficiency variance for the period? Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Variable overhead price variance Variatile overhead efficiency variance $26 $ 97,500 and Reg 0 >

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 32P: Petrillo Company produces engine parts for large motors. The company uses a standard cost system for...
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Volte Corporation produces small electric appliances. The following information is available for the most recent period of operations: Standard variable overhead rate Actual output Actual direct labor-hours used Standard direct labor-hours $ 839,000 Actual direct labor cost incurred i Standard direct labor-hour rate: Actual variable overhead incurred Actual units sold $ 26 97,500 $ 20,280 units. Volte never has any work-in-process inventories and began the year with no finished goods inventory. Required: a. and b. What was the variable overhead price variance and the variable overhead efficiency variance for the period? c. Assume that Volte writes off all variances to Cost of Goods Sold. Prepare the entries Volte would make to record and close out the variances. d. Assume that Volte prorates all variances to appropriate accounts. Prepare the entries Volte would make to record and close out the variances. Complete this question by entering your answers in the tabs below. Req A and B $ 2.60 per direct labor-hour 25,300 units 34,700 1.5 per unit Reg D Req C What was the variable overhead price variance and the variable overhead efficiency variance for the period? Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Variable overhead price variance Variatile overhead efficiency variance and Req>
Transcribed Image Text:Volte Corporation produces small electric appliances. The following information is available for the most recent period of operations: Standard variable overhead rate Actual output Actual direct labor-hours used Standard direct labor-hours $ 839,000 Actual direct labor cost incurred i Standard direct labor-hour rate: Actual variable overhead incurred Actual units sold $ 26 97,500 $ 20,280 units. Volte never has any work-in-process inventories and began the year with no finished goods inventory. Required: a. and b. What was the variable overhead price variance and the variable overhead efficiency variance for the period? c. Assume that Volte writes off all variances to Cost of Goods Sold. Prepare the entries Volte would make to record and close out the variances. d. Assume that Volte prorates all variances to appropriate accounts. Prepare the entries Volte would make to record and close out the variances. Complete this question by entering your answers in the tabs below. Req A and B $ 2.60 per direct labor-hour 25,300 units 34,700 1.5 per unit Reg D Req C What was the variable overhead price variance and the variable overhead efficiency variance for the period? Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Variable overhead price variance Variatile overhead efficiency variance and Req>
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