WILD'S FUNDAMENTAL ACCOUNTING PRINCIPLE
23rd Edition
ISBN: 9781260517903
Author: Wild
Publisher: MCG
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Chapter 23, Problem 15QS
Volume variance P3
Refer to information in QS 23-14. Compute the overhead volume variance for November and classify it as favorable or unfavorable.
QS 23-14
Controllable overhead variance
P3
Airpro Corp. reports the following for November. Compute the total variance and controllable overhead variance for November and classify each as favorable and unfavorable.
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For the month of April, compute the variances, indicating whether it is favorable (F) or unfavorable (U):
Q. Variable manufacturing overhead spending variance ?
For the month of April, compute the variances, indicating whether it is favorable (F) or unfavorable (U):
Q. Direct manufacturing labor efficiency variance ?
Fortes Incorporated has provided the following data concerning one of the products in its standard cost system. Variable
manufacturing overhead is applied to products on the basis of direct labor-hours.
Standard Quantity or
Hours per Unit of Output
8.5 ounces
0.6 hours
0.6 hours.
Inputs
Direct materials
Direct labor
Variable manufacturing overhead
The company has reported the following actual results for the product for April:
6,100 units
55,050 ounces
Actual output
Raw materials purchased
Actual cost of raw materials purchased
Raw materials used in production
Actual direct labor-hours
Actual direct labor cost
Actual variable overhead cost
$ 303,010
51,860 ounces
3,360 hours
Standard Price or Rate
$6.60 per ounce
$24.80 per hour
$ 4.90 per hour
$ 86,810
$ 15,717
Required:
a. Compute the materials price variance for April.
b. Compute the materials quantity variance for April.
c. Compute the labor rate variance for April.
d. Compute the labor efficiency variance for April.
e. Compute the…
Chapter 23 Solutions
WILD'S FUNDAMENTAL ACCOUNTING PRINCIPLE
Ch. 23 - Prob. 1DQCh. 23 - Prob. 2DQCh. 23 - Prob. 3DQCh. 23 - Prob. 4DQCh. 23 - Prob. 5DQCh. 23 - Prob. 6DQCh. 23 - Prob. 7DQCh. 23 - Prob. 8DQCh. 23 - Prob. 9DQCh. 23 - Prob. 10DQ
Ch. 23 - Prob. 11DQCh. 23 - Prob. 12DQCh. 23 - Prob. 13DQCh. 23 - How can the manager of advertising sales at Google...Ch. 23 - Prob. 15DQCh. 23 - Prob. 16DQCh. 23 - Prob. 17DQCh. 23 - Prob. 18DQCh. 23 - Prob. 1QSCh. 23 - Prob. 2QSCh. 23 - Prob. 3QSCh. 23 - Prob. 4QSCh. 23 - Prob. 5QSCh. 23 - Prob. 6QSCh. 23 - Prob. 7QSCh. 23 - Prob. 8QSCh. 23 - Prob. 9QSCh. 23 - Prob. 10QSCh. 23 - Prob. 11QSCh. 23 - QS 23-12
Labor cost variances P2
Frontera...Ch. 23 - Prob. 13QSCh. 23 - Prob. 14QSCh. 23 - Volume variance P3 Refer to information in QS...Ch. 23 - Prob. 16QSCh. 23 - Preparing overhead entries P5 Refer to the...Ch. 23 - Prob. 18QSCh. 23 - Prob. 19QSCh. 23 - Prob. 20QSCh. 23 - Prob. 21QSCh. 23 - Prob. 22QSCh. 23 - Prob. 23QSCh. 23 - Prob. 1ECh. 23 - Prob. 2ECh. 23 - Prob. 3ECh. 23 - Exercise 23-4 Preparing a flexible budget...Ch. 23 - Prob. 5ECh. 23 - Prob. 6ECh. 23 - Exercise 23-7
Cost variances
C2
Presented below...Ch. 23 - Prob. 8ECh. 23 - Prob. 9ECh. 23 - Prob. 10ECh. 23 - Prob. 11ECh. 23 - Prob. 12ECh. 23 - Prob. 13ECh. 23 - Prob. 14ECh. 23 - Prob. 15ECh. 23 - Prob. 16ECh. 23 - Prob. 17ECh. 23 - Exercise 23-18A
Computation and interpretation...Ch. 23 - Prob. 19ECh. 23 - Prob. 20ECh. 23 - Prob. 21ECh. 23 - Prob. 22ECh. 23 - Prob. 23ECh. 23 - Prob. 1APSACh. 23 - Prob. 2APSACh. 23 - Prob. 3APSACh. 23 - Prob. 4APSACh. 23 - Prob. 5APSACh. 23 - Prob. 6APSACh. 23 - Prob. 1BPSBCh. 23 - Prob. 2BPSBCh. 23 - Problem 23-3B Flexible budget preparation;...Ch. 23 - Prob. 4BPSBCh. 23 - Prob. 5BPSBCh. 23 - Prob. 6BPSBCh. 23 - Prob. 23SPCh. 23 - Analysis of flexible budgets and standard costs...Ch. 23 - Prob. 2BTNCh. 23 - Selling materials, labor, and overhead standards...Ch. 23 - Prob. 4BTNCh. 23 - Prob. 5BTNCh. 23 - Prob. 6BTNCh. 23 - Prob. 7BTNCh. 23 - Prob. 8BTNCh. 23 - BIN 23-9 Access the annual report of Samsung (at...
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- (Appendix) Calculating factory overhead: three variances Using the data given in E8-17, calculate the following overhead variances: a. Spending variance. b. Production-volume variance. c. Efficiency variance. d. Was the factory overhead under- or overapplied? By what amount? In all problems involving variances, use F and U to indicate favorable and unfavorable variances, respectively.arrow_forwardDickinsen Company gathered the following data for December: a.Compute the revenue price variance. b.Compute the revenue volume variance. c.Compute the total revenue variance.arrow_forwardEllis Companys labor information for September is as follows: A. Compute the standard direct labor rate per hour. B. Compute the direct labor time variance. C. Compute the standard direct labor rate if the direct labor rate variance was $2,712.30 (unfavorable).arrow_forward
- Ribcos labor cost information for making its only product for March is as follows: A. What is the direct labor rate variance? B. What is the direct labor time variance? C. What is the total direct labor variance?arrow_forwardFor the month of April, compute the variances, indicating whether it is favorable (F) or unfavorable (U) Q.Fixed manufacturing overhead spending variance .arrow_forwardYou have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president asked you to review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find the company has never used a flexible budget, and you suggest preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you estimated the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,000+ $0.19 per machine-hour $38,500+ $1.30 per machine-hour $0.90 per machine-hour During March, the company worked 20,000 machine-hours and produced 14,000 units. The company originally planned to work 22,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March. $94,800+ $1.70 per…arrow_forward
- Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,030 hours each month to produce 2,060 sets of covers. The standard costs associated with this level of production are: Per Set Total of Covers Direct materials $39,140 $ 19.00 Direct labor $ 9,270 4.50 Variable manufacturing overhead (based on direct labor-hours) $ 3,502 1.70 $25.20arrow_forwardFor the month of April, compute the variances, indicating whether it is favorable (F) or unfavorable (U): Q. Direct materials efficiency variance ?arrow_forward1. Compute the fixed overhead spending (budget) variance and the production volume variance for March and indicate whether each variance is favorable (F) or unfavorable (U). 2. Compute the fixed overhead flexible-budget variance for March. Is this variance favorable (F) or unfavorable (U)?arrow_forward
- For the month of April, compute the variances, indicating whether it is favorable (F) or unfavorable (U): Q. Direct materials price variance (based on purchases)?arrow_forwardPrimara Corporation has a standard costing system in which it applies overhead to products on the basis of the standard direct labour- hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted standard direct labour-hours (denominator level of activity) Actual direct labour-hours Standard direct labour-hours allowed for the actual output $ 500,000 $ 508,000 50,000 54,000 52,000 Required: 1. Compute the fixed portion of the predetermined overhead rate for the year. Predetermined overhead rate per DLHarrow_forwardMarvel Parts, Ic., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,060 hours each month to produce 2,120 sets of covers. The standard costs associated with this level of production are: Per Set of Covers $ 43,460 $20.50 4.50 Total Direct materials Direct labor $ 9,540 Variable manufacturing overhead (based on direct labor-hours) $ 4,664 2.20 $27.20 During August, the factory worked only 500 direct labor-hours and produced 2,200 sets of covers. The following actual costs were recorded during the month: Per Set of Covers $ 44,000 $20.00 $ 10,340 $ 5,500 Total Direct materials (8,000 yards) Direct labor 4.70 Variable manufacturing overhead 2.50 $27.20 At standard, each set of covers should require 2.5 yards of material. All of the materials…arrow_forward
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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