Concept explainers
Straightforward coverage of manufacturing
Variable |
$537,470 |
Variable manufacturing overhead cost rate | $7 per standard machine-hour |
Fixed manufacturing overhead costs incurred | $146,101 |
Fixed manufacturing overhead costs budgeted | $136,000 |
Denominator level in machine-hours | 68,000 |
Standard machine-hour allowed per unit of output | 1.2 |
Units of output | 66,500 |
Actual machine-hours used | 75,700 |
Ending work-in-process inventory | 0 |
- A. Prepare an analysis of all manufacturing overhead variances. Use the 4-
variance analysis framework illustrated in Figure 8-4 (page 304).
Required
- B. Prepare
journal entries for manufacturing overhead costs and their variances. - C. Describe how individual variable manufacturing overhead items are controlled from day to day.
- D. Discuss possible causes of the variable manufacturing overhead variances.
Learn your wayIncludes step-by-step video
Chapter 8 Solutions
Horngren's Cost Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText - Access Card Package (16th Edition)
Additional Business Textbook Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Construction Accounting And Financial Management (4th Edition)
Intermediate Accounting
Financial Accounting, Student Value Edition (4th Edition)
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Horngren's Accounting (12th Edition)
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