Pandom Inc. produces chemicals for large biotech companies. It has the following data for manufacturing overhead costs

Question:

Pandom Inc. produces chemicals for large biotech companies.

It has the following data for manufacturing overhead costs during August 2015:

VariableFixed

Actual costs incurred......................................$35,700........$18,000

Costs allocated to products................................27,000.........14,400

Flexible budget: Budgeted input allowed for

actual output produced × budgeted rate.................27,000.........15,000

Actual input × budgeted rate..............................31,500.........15,000

Required

Fill in the variances in the table below. Use F for favourable and U for unfavourable.

VariableFixed

1. Rate variance.............................................$_____........$_____

2. Efficiency variance.......................................$_____........$_____

3. Production-volume variance............................$_____........$_____

4. Flexible-budget variance.................................$_____.......$_____

5. Underallocated manufacturing overhead..............$_____.......$_____

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Related Book For  book-img-for-question

Cost Accounting A Managerial Emphasis

ISBN: 978-0133138443

7th Canadian Edition

Authors: Srikant M. Datar, Madhav V. Rajan, Charles T. Horngren, Louis Beaubien, Chris Graham

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