MANAGERIAL ACCOUNTING
17th Edition
ISBN: 9781264151455
Author: Garrison
Publisher: MCG
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Chapter 10.A, Problem 4E
EXERCISE 10A-4 Fixed Overhead Variances LO10-4
Selected operating information on three different companies for a recent year is gh en below:
Company
| A | B | C | |
| Full-capacity machine-hours | 10,000 |
18,000 | 20,000 |
| Budgeted machine-hours* | 9.000 |
17,000 | 20,000 |
| Actual machine-hours | 9.000 |
17,800 | 19,000 |
| Standard machine-hours allowed for actual production | 9,500 |
16,000 | 20,000 |
‘Denominator activity for computing the predetermined overhead rate.
Required:
For each company, state whether the company would have a favorable or unfavorable volume variance and why.
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Students have asked these similar questions
Subject - Acounting
The following data relate to direct labor costs for the current period:
Line Item Description
Value
Standard costs
7,500 hours at $11.80
Actual costs
6,300 hours at $10.70
The direct labor rate variance is
a. $21,090 unfavorable
b. $6,930 favorable
c. $21,090 favorable
d. $14,160 favorable
Question Content Area
The following data relate to direct labor costs for the current period:
Line Item Description
Value
Standard costs
7,000 hours at $11.80
Actual costs
6,300 hours at $10.80
The direct labor rate variance is
a. $14,560 unfavorable
b. $6,300 favorable
c. $14,560 favorable
d. $8,260 favorable
Exercise 10A-4 (Algo) Fixed Overhead Variances [LO10-4]
Selected operating information on three different companies for a recent year is given below:
Company
B
22,000
21, 200
A
33,000
32,000
32,000
32,500
Full-capacity machine-hours
Budgeted machine-hours*
Actual machine-hours
Standard machine-hours allowed for actual production
*Denominator activity for computing the predetermined overhead rate.
Company A
Company B
Company C
21,400
20,600
C
23,000
23,000
22,000
23,000
Required:
For each company, state whether the volume variance would be favorable or unfavorable.
Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero
variance.)
Chapter 10 Solutions
MANAGERIAL ACCOUNTING
Ch. 10.A - EXERCISE 10A-1 Fixed Overhead Variances LO10-4...Ch. 10.A - EXERCISE 10A-2 Predetermined Overhead Rate;...Ch. 10.A - Prob. 3ECh. 10.A - EXERCISE 10A-4 Fixed Overhead Variances LO10-4...Ch. 10.A - EXERCISE 10A5 Using Fixed Overhead Variances LO104...Ch. 10.A - EXERCISE 10A-6 Predetermined Overhead Rate LO10-4...Ch. 10.A - EXERCISE 10A-7 Relations Among Fixed Overhead...Ch. 10.A - Prob. 8PCh. 10.A - PROBLEM 10A-9 Applying Overhead; Overhead...Ch. 10.A - PROBLEM 10A-10 Comprehensive Standard Cost...
Ch. 10.A -
PROBLEM 10A-11 Comprehensive Standard Cost...Ch. 10.A - Prob. 12PCh. 10.B - EXERCISE 10B-1 Standard Cost Flows; Income...Ch. 10.B - Prob. 2ECh. 10.B - Prob. 3ECh. 10.B - Prob. 4ECh. 10.B - Prob. 5PCh. 10.B - Prob. 6PCh. 10 - Prob. 1QCh. 10 - Why are separate price and quantity variances...Ch. 10 - 10-3 Who is generally responsible for the...Ch. 10 - The materials price variance can be computed at...Ch. 10 - 10-5 If the materials price variance is favorable...Ch. 10 - Prob. 6QCh. 10 - Prob. 7QCh. 10 - 10-8 What effect, if any, would you expect...Ch. 10 - 10-9 If variable manufacturing overhead is applied...Ch. 10 - 10-10 Why can undue emphasis on labor efficiency...Ch. 10 -
The Excel worksheet form that appears below is to...Ch. 10 - Prob. 2AECh. 10 - Prob. 1F15Ch. 10 - Prob. 2F15Ch. 10 - Prob. 3F15Ch. 10 - Prob. 4F15Ch. 10 - Prob. 5F15Ch. 10 - Prob. 6F15Ch. 10 - Prob. 7F15Ch. 10 - Prob. 8F15Ch. 10 - Prob. 9F15Ch. 10 - Preble Company manufactures one product. Its...Ch. 10 - Prob. 11F15Ch. 10 - Prob. 12F15Ch. 10 - Prob. 13F15Ch. 10 - Prob. 14F15Ch. 10 - Prob. 15F15Ch. 10 - EXERCISE 10-1 Direct Materials Variances LO10-1...Ch. 10 -
EXERCISE 10-2 Direct Labor Variances...Ch. 10 -
EXERCISE 10–3 Variable Overhead Variances...Ch. 10 - EXERCISE 10-4 Direct Labor and Variable...Ch. 10 -
EXERCISE 10-5 Working Backwards from Labor...Ch. 10 - EXERCISE 10-6 Direct Materials and Direct Labor...Ch. 10 - EXERCISE 10-7 Direct Materials Variances LOIO-1...Ch. 10 -
EXERCISE 10-8 Direct Materials and Direct Labor...Ch. 10 -
PROBLEM 10-9 Comprehensive Variance Analysis...Ch. 10 -
PROBLEM 10-10 Multiple Products, Materials, and...Ch. 10 - PROBLEM 10-11 Direct Materials and Direct Labor...Ch. 10 - PROBLEM 10-12 Variance Analysis in a...Ch. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - PROBLEM 10-15 Comprehensive Variance Analysis...Ch. 10 - Prob. 16PCh. 10 - Prob. 17C
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What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY