1.
Introduction: A budget is an estimate of revenue and expenses for a given period of time that is usually compiled and re-evaluated regularly. Budgets can be created for an individual, a group of people, a company, a government, or almost anything else that makes and spends money.
To calculate: The variable overhead spending and efficiency variance.
2.
Introduction: A budget is an estimate of revenue and expenses for a given period of time that is usually compiled and re-evaluated regularly. Budgets can be created for an individual, a group of people, a company, a government, or almost anything else that makes and spends money.
The fixed overhead spending and volume variance.
3.
Introduction: A budget is an estimate of revenue and expenses for a given period of time that is usually compiled and re-evaluated regularly. Budgets can be created for an individual, a group of people, a company, a government, or almost anything else that makes and spends money.
The controllable variance.
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FUNDAMENTAL ACCT PRIN CONNECT ACCESS
- Dickinsen 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_forwardUsing 6-way variance analysis, determine the following variances: 4. Cost volume variance 5. Cost factor 6. Cost-Quantity factor Format: 111,111 U or 111,111 Farrow_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_forward
- Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 2 DLH per unit. For March, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following budget. The company actually operated at 90% capacity (11,250 units) in March and incurred actual total overhead costs of $129,230. 80% Operating Levels Overhead Budget Production in units 10,000 Budgeted variable overhead Budgeted fixed overhead $ 58,000 $ 68,000 1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 20,000 DLH, computed as 10,000 units × 2.00 DLH per unit. 2. Compute the total overhead variance. 3. Compute the overhead controllable variance. 4. Compute the overhead volume variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 20,000…arrow_forwardMarvel 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_forwardCompute for the variances of the problem using the information given. Answer the numbers only up to two decimal places. A. Compute for Labor Efficiency Variance B. Compute for Labor Spending Variance C. Compute for Labor Rate Variancearrow_forward
- Working With Variances From the following data, determine the total actual costs incurred for direct material, direct labor, and variable overhead. Standard Costs Variances Direct material $145,000 3,000 U 4,000 F 125,000 1,400 U 1,800 U 69,000 1,000 F 600 U Price variance Quantity variance Rate variance Efficiency variance Spending variance Efficiency variance Direct labor Variable overhead Actual Costs Direct material $ 0 Direct labor $ 0 Variable overhead $ 0arrow_forwardLogistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock items carried by its dot.com clients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, which pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours. In the most recent month, 175,000 items were shipped to customers using 7,400 direct labor-hours. The company incurred a total of $24,790 in variable overhead costs. k According to the company's standards, 0.04 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $3.40 per direct labor-hour. nt Required: 1. What is the standard labor-hotfs allowed (SH) to ship 175,000 items to customers? 2. What is the standard variable overhead cost allowed (SH x SR) to ship 175,000 items to customers? 3. What is the variable overhead spending…arrow_forwardM Question 6 - Ch 23: HOME ation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation. Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $5.00 per pound) Direct labor (7 hours @ $14 per hour) Variable overhead (7 hours @ $7 per hour) Fixed overhead (7 hours @ $9 per hour) Standard cost per unit Production (in units) Standard direct labor hours (7 DLH per unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% the company's capacity of 51,000 units per quarter. The following additional information is available. Direct materials (1,377,000 pounds @ $5.00 per pound) Direct labor (321,300 hours @ $14 per hour) Overhead (321,300 hours @ $16 per hour) Standard (budgeted) cost Variable overhead Actual cost Saved 80 F3 Actual costs incurred during…arrow_forward
- Derr Company reports the following. Compute (a) controllable variance, (b) volume variance, and (c) total overhead. Actual total overhead $ 1,120 Budgeted (flexible) overhead at units produced Standard overhead applied 800 1,040 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute controllable variance. (Indicate the effect of the variance by selecting or no variance. Controllable Variance Controllable variance Required 2 >arrow_forwardData table Variable manufacturing overhead costs incurred Variable manufacturing overhead cost rate Fixed manufacturing overhead costs incurred Fixed manufacturing overhead costs budgeted Denominator level in machine-hours Standard machine-hour allowed per unit of output Units of output Actual machine-hours used Ending work-in-process inventory $687,100 $9 per standard machine-hour $146,500 $141,000 70,500 1.2 64,800 75,500 0arrow_forwardDerr Company reports the following. Compute (a) controllable variance, (b) volume variance, and (c) total overhead Actual total overhead Budgeted (flexible) overhead at units produced Standard overhead applied $ 1,120 800 1,040 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Total Overhead Variance Overhead variance < Required 2arrow_forward
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