The data related to Elite Sporting Goods Companys factory overhead cost for the production of 50,000 units
Question:
Productive capacity at 100% of normal was 75,000 hours, and the factory overhead cost budgeted at the level of 76,000 standard hours was $377,900. Based on these data, the chief cost accountant prepared the following variance analysis:
Identify the errors in the factory overhead cost variance analysis.
Transcribed Image Text:
Variable factory overhead Fixed factory overhead 76,000 hrs. at $5.00 ($2.90 for variable factory overhead) Actual: $218,900 157,500 380,000 Standard: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred $218,900 Budgeted variable factory overhead for 76,000 hours 220,400 Variance-favorable -$1,500 Fixed factory overhead volume variance: Normal productive capacity at 100% 75,000 hrs. Standard for amount produced 76,000 Productive capacity not used 1,000 hrs. Standard variable factory overhead rate x $5.00 Variance-unfavorable 5,000 Total factory overhead cost variance-unfavorable $3,500
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 54% (11 reviews)
In determining the volume variance the productive capacity overemployed 1000 hours should be multipl...View the full answer
Answered By
Ayush Jain
Subjects in which i am expert:
Computer Science :All subjects (Eg. Networking,Database ,Operating System,Information Security,)
Programming : C. C++, Python, Java, Machine Learning,Php
Android App Development, Xamarin, VS app development
Essay Writing
Research Paper
History, Management Subjects
Mathematics :Till Graduate Level
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Financial and Managerial Accounting Using Excel for Success
ISBN: 978-1111993979
1st edition
Authors: James Reeve, Carl S. Warren, Jonathan Duchac
Question Posted:
Students also viewed these Business questions
-
The data related to Ruby River Sporting Goods Companys factory overhead cost for the production of 45,000 units of product are as follows: Actual: Variable factory overhead................. $258,950...
-
It is early in October 2002, and your investment bank has been hired by the management team at Dicks Sporting Goods (DKS) to determine a valuation/ offering price for their stocks IPO. About Dicks...
-
The data related to Acclaim Sporting Goods Company's factory overhead cost for the production of 50,000 units of product are as follows: Productive capacity at 100% of normal was 75,000 hours, and...
-
a. If hoe = 20S at IC = 1 mA of Fig. 5.124, what is the approximate value of h" at lC = 10 mA? b. Determine its resistive value at 10 mA and compare to a resistive load of 6.8 k. Is it a good...
-
Van Rushing Hunting Goods' fiscal year ends on December 31. At the end of the 2018 fiscal year, the company had notes payable of $12 million due on February 8, 2019. Rushing sold 2 million shares of...
-
Consolidation accounting involves combining the financial reports of the subsidiary companies with that of their parent company. Locate an annual report, Form 10-K, for a consolidated entity....
-
A gutter running along the side of a house is 6 in. wide and \(40 \mathrm{ft}\) long. During a hard downpour, water is \(1 \mathrm{in}\). deep in the gutter. The gutter has only one downspout, and it...
-
Stavos Companys Screen Division manufactures a standard screen for high-definition televisions (HDTVs). The cost per screen is: Variable cost per screen . . . . . . . . . . . . . $ 70 Fixed cost per...
-
If you were asked to justify the study of leadership, how would you do it? What is your leadership style? What do you see as your personal strengths and limitations when it comes to your leadership...
-
Futi Ishanyan owns a retail business and made the following sales during the month of August 20--. There is a 6% sales tax on all sales. Aug. 1 Sale No. 213 to Jeter Manufacturing Co., $1,300, plus...
-
Casual Comfort Textiles Corporation began January with a budget for 30,000 hours of production in the Weaving Department. The department has a full capacity of 40,000 hours under normal business...
-
Medical Molded Products Inc. prepared the following factory overhead cost budget for the Trim Department for March 2012, during which it expected to use 10,000 hours for production: Medical Molded...
-
For the distillation problem outlined in Section 21. 3.2, a. Determine the values of \(F, B\), and \(x_{B}\) required when the concentration of the feed becomes \(z_{F}\) \(=0.25\). Assume that the...
-
Rock Inc. is a manufacturer. It incurred numerous overhead costs this year. How should it treat the costs in determining its inventory?
-
For the year ended June 30, 20X7, the trust fund should report the $75,000 spent to support local artists as a a. Deduction. b. Contra contribution. c. Transfer out. d. Direct adjustment from fund...
-
Update Table 13.4 for the most recent year. Table 13.4 Country China Canada Mexico Japan Germany United Kingdom Korea, Rep. of India France Brazil Italy Taiwan (China) Exports $188.0 341.3 276.7...
-
Smith donated cash of $1,000,000 to Elizabeth City with the stipulation that the contribution be invested and that the investments earnings be spent for salaries for the citys symphony orchestra. The...
-
On December 31, 2015, Regent Inc. rendered services to Begin Corporation at an agreed price of 102,049, accepting 40,000 down and agreeing to accept the balance in four equal installments of 20,000...
-
The willingness of firms to listen to the preferences of employees suggests that employees pay for their own fringe benefits. For instance, most companies would be willing to pay higher salaries if...
-
The rate at which the temperature of an object changes is proportional to the difference between its own temperature and the temperature of the surrounding medium. Express this rate as a function of...
-
It is unlikely that the company has released information about its efficiency variances. In general, though, what could cause this companys material efficiency variances to be favourable? What could...
-
Given what you have discovered about the cost of labour, was the labour price variance likely to be favourable or unfavourable?
-
Given what you have discovered about the cost of materials for this product, were the price variances for each material likely to be favourable or unfavourable? Answer separately for each individual...
-
es Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of operations: 1. Accepted $16,600 on April 1, Year 1, as a retainer for services to be performed evenly...
-
Dahlia Corporation has a current accounts receivable balance of $439,516. Credit sales for the year just ended were $5,503,810. a. What is the receivables turnover? Note: Do not round intermediate...
-
Why does the organizational structure hold political significance? Provide an in-depth analysis of this concept using examples from both academic literature and real-world instances. Additionally,...
Study smarter with the SolutionInn App