Geschke Corporation, which produces commercial safes, has provided the following data: Budgeted production 8,500 safes standard machine-hours per safe Standard supplies cost Actual production Actual machine-hours Actual supplies cost Supplies cost is an element of variable manufacturing overhead. The variable overhead rate variance for supplies is closest to: Multiple Choice O O $10,828 F $10.947 U $10,828 U $10.947 F 9.1 machine-hours $ 1.70 per machine-hour 8,700 safes 79,100 machine-hours $123,642

Geschke Corporation, which produces commercial safes, has provided the following data: Budgeted production 8,500 safes standard machine-hours per safe Standard supplies cost Actual production Actual machine-hours Actual supplies cost Supplies cost is an element of variable manufacturing overhead. The variable overhead rate variance for supplies is closest to: Multiple Choice O O $10,828 F $10.947 U $10,828 U $10.947 F 9.1 machine-hours $ 1.70 per machine-hour 8,700 safes 79,100 machine-hours $123,642

Name: Geschke Corporation, which produces commercial safes, has provided th
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Description: Geschke Corporation, which produces commercial safes, has provided the following data:Budgeted production8,500 safesstandard machine-hours per safeStandard supplies costActual productionActual machine-hoursActual supplies costSupplies cost is an ele

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 12PA: ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc....

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ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc. had budgeted $27,000 for fixed overhead. Actual machine hours were 5.000. Standard hours for units made were 4,800. The standard variable overhead rate was $4.10. What is the variable overhead rate variance?
Example-2Variable manufacturing overhead variance analysis. The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. Variable manufacturing overhead is allocated to products on the basis of standard direct manufacturing labor-hours. Following is some budget data for the Sourdough Bread Company:Direct manufacturing labor use 0.02 hours per baguetteVariable manufacturing overhead $10.00 per direct manufacturing labor-hourThe Sourdough Bread Company provides the following additional data for the year ended December 31, 2017:Required:Planned (budgeted) outputActual productionDirect manufacturing laborActual variable manufacturing overhead3,100,000 baguettes 2,600,000 baguettes 46,800 hours$617,7601. What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is Sourdough Bread budgeting?)2.…
Required information (The following information applies to the questions displayed below.] Mosaic Company applies overhead using machine hours and shows the following information. Actual hours of machine use Standard hours of machine use (for actual production) Actual variable overhead rate per machine hour Standard variable overhead rate per machine hour 5,500 hours 6,000 hours $5.10 Compute the variable overhead variance and identify it as favorable or unfavorable. Actual Cost Standard Cost
Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information from LLL's standard cost card follows: Variable manufacturing overhead Standard Standard Quantity Rate 0.6 $0.80 Units produced and sold Actual variable overhead Actual direct labor hours During August, LLL had the following actual results: $ Standard Unit Cost $0.48 26,300 9,590 17,000 Variable Overhead Rate Variance Variable Overhead Efficiency Variance Variable Overhead Spending Variance Required: Compute LLL's variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
The following information is available for Carla Shirts: Direct Materials Direct Labour Variable Overhead Fixed Overhead Standard Quantity 3 metres 2 hours 2 machine hours 2 machine hours Materials Price Variance Materials Quantity Variance Labour Rate Variance Labour Efficiency Variance VOH Spending Variance VOH Efficiency Variance FOH Budget Variance FOH Volume Variance ? Standard Cost $10/metre $9/hour $270 U $513 U $243 F $96 F $120 F $80 F $20 U $2/machine hour The normal production level is 280 shirts. This production period Carla produced 270 shirts. Concert Wear purchased 840 metres of fabric for $7,476. The variances for the production period are: $1/machine hour Total Standard Cost $30 $18 $4 $2 $54
The following information relating to a company's overhead costs is available. Budgeted fixed overhead rate per machine hour Actual variable overhead Budgeted variable overhead rate per machine hour Actual fixed overhead Budgeted hours allowed for actual output achieved Based on this information, the total overhead variance is: Multiple Choice O O $69,000 favorable. $112,000 favorable. $43,000 unfavorable. $112,000 unfavorable. $43,000 favorable. $ 1.50 $ 99,000 $ 4.00 $ 20,000 42,000
Cricket Inc. uses a standard cost accounting system and applies manufacturing overhead based on machine hours. The machine hour quantity standard is 25 hours per unit. Here are data regarding the current year: Units produced Manufacturing overhead costs: • Fixed overhead Variable overhead Total overhead . B O Actual machine hours O Standard machine hours allowed O Standard cost allowed O No additional information is required Planning budget 1,200 units What additional information is required to compute both the variable manufacturing overhead rate and efficiency variances? O None of the above $1,414,500 $1,728,000 $3,142,500 Actual results 1,056 units $1,460,000 $1,621,600 $3,081,600
Mosaic Company applies overhead using machine hours and reports the following information. Compute the total variable overhead cost variance and classify it as favorable or unfavorable. Actual machine hours used . 4,700 hours Standard machine hours (for actual production) 5,000 hours Actual variable overhead rate per hour $4.15 Standard variable overhead rate per hour . $4.00
XYZ company produces a unit where delivery of its units to customers are related with all of the overheads.Computer expenditure and efficiency variance-ABC method. Budget: Overheads=4,000 Output =2,000 units Deliveries=20 Actual: Overheads =3,900 Output =2,100 units Deliveries to customers =19
The following data are given for Bahia Company: Budgeted production Actual production Materials: Standard price per pound Standard pounds per completed unit Actual pounds purchased and used in production Actual price paid for materials Labor: Standard hourly labor rate Standard hours allowed per completed unit Actual labor hours worked Actual total labor costs Overhead: Actual and budgeted fixed overhead Standard variable overhead rate Actual variable overhead costs Overhead is applied on standard labor hours. The variable factory overhead controllable variance is a. $540 favorable Ob. $540 unfavorable c. $65 favorable Od. $65 unfavorable 1,000 units 980 units $2.00 12 11,800 $23,000 $14.00 per hour 4.5 4,560 $62,928 $27,000 $3.50 per standard direct labor hour $15,500
3. Fixed manufacturing overhead variance analysis (Continuation of #2 above) The Sourdough Bread Company bakes baquettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. Variable manufacturing overhead is allocated to products on the basis of standard direct manufacturing labor-hours. Following is some budget data for the Sourdough Bread Company: Direct manufacturing labor use Variable manufacturing overhead $10.00 per direct manufacturing labor-hour 0.02 hours per baguette The Sourdough Bread Company also allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor-hours. For 2021, fixed manufacturing overhead was budgeted at $3.00 per direct manufacturing labor-hour. Actual fixed manufacturing overhead incurred during the year was $284,000. The Sourdough Bread Company provides the following additional data for the December 31, 2021: year ended Planned…
Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Standard Quantity Standard Rate Standard Unit Cost Var. Man. OH 0.6 $0.80 $0.48 During August, LLL had the following actual results Units produced and sold-25,300 Actual Variable Overhead-$9,520 Actual Direct Labor Hours-16,300 Variable Overhead Rate Variance? AH X (SR-AR) I keep getting wrong Variable Overhead Effeciency Variance? SR X (SH-AH)m I keep gettimg wrong Variable Overhead Spending Variance? Im not sure the formula for this