Ollivander manufactures premium Magic Wands. The following are some manufacturing overhead data for Magic Wands for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ollivander manufactures premium Magic Wands. The following are some manufacturing overhead data for Magic Wands for the year ended March 31, 2020. Actual Flexible Allocated Manufacturing Overhead Results Budget Amount Variable $60,560 $76,800 $76,800 Fixed $350,210 $348,096 $375,897 Budgeted number of wands (output): 892 Planned allocation rate: 3 machine-hours per wand Actual number of machine-hours used: 1,445 hours Static-budget variable manufacturing overhead costs: $71,120 Ollivander looks at this information and needs some help with interpretation. When comparing actual results to the flexible budget it looks like he performed well on variable overhead but poorly on fixed overhead; yet, comparing to the allocated amount tells a different story. Ollivander needs your help interpreting these variances! Can you help Ollivander? Ollivander manufactures premium Magic Wands. The following are some manufacturing overhead data for Magic Wands for the year ended March 31, 2020. Actual Flexible Allocated Manufacturing Overhead Results Budget Amount Variable $60,560 $76,800 $76,800 Fixed $350,210 $348,096 $375,897 Budgeted number of wands (output): 892 Planned allocation rate: 3 machine-hours per wand Actual number of machine-hours used: 1,445 hours Static-budget variable manufacturing overhead costs: $71,120 Ollivander looks at this information and needs some help with interpretation. When comparing actual results to the flexible budget it looks like he performed well on variable overhead but poorly on fixed overhead; yet, comparing to the allocated amount tells a different story. Ollivander needs your help interpreting these variances! Can you help Ollivander?
Expert Answer:
Answer rating: 100% (QA)
Variable Manufacturing OH Flexible Budget ACTUAL COST Allocated Total Actual cost 60560 Total 7... View the full answer
Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
Manufacturing overhead data for the production of Product H by Norland Company are as follows. Overhead incurred for 52,000 actual direct labor hours worked ...$213,000 Overhead rate (variable $3;...
-
Manufacturing overhead data for the production of Product H by Felton Company are as follows. Overhead incurred for 52,000 actual direct labor hours worked ... $213,000 Overhead rate (variable $3;...
-
Manufacturing overhead data for the production of Product H by Smart Company are as follows. Overhead incurred for 52,000 actual direct labor hours worked .........$263,000 Overhead rate (variable...
-
Elizabeth Is a nurse, and she just administered 1.8 milliliters of medication to one of her patients. Elizabeth knows that the amount of medication remaining in the patient's body wi decrease by a...
-
A fine wire having a diameter of 0.025 mm is placed in a horizontal position in atmospheric air at 300 K. An electric current is passed through the wire such that the surface temperature reaches a...
-
Indicate which reaction in each of the following pairs should have the greater (less negative, more positive) standard entropy of activation. Explain. gice CHBr: HN NH CH CH CH CH +Br or CH2 Bra...
-
List and discuss the major information security and privacy threats to organizations.
-
If costs increase from one period to another, will costs that are transferred out of one department under FIFO costing be higher or lower than costs transferred out using weighted average costing?...
-
Y5 American Factory: Netflix Do you see any legal concerns with Fuyao Glass's actions?
-
Prepare a skeleton statement of revenues, expenditures, and changes in fund balances using the headings in Illustration 2-11 (e.g., Revenues, Expenditures, and Excess (Deficiency) of Revenues over...
-
As the senior accountant at Active Quality Sportswear (AQS), which manufactures sport attire for men, women, youth, and children, you are often asked to prepare various financial analysis necessary...
-
A hair straightener (HS#8516.32) is made in Canada and its parts (HS#8516.90) are made from Mexico and China. The selling price for the hair straightener iron is CAD$50.00; the value for the...
-
In this problem you will use Newton's Method to find the root of the function f(x) = ax - cos(x), where a is a random scalar value between 2 and 8. Newton's Method is a "simple" method for finding...
-
From the perspective of business, what does it mean to be "out of stock"? What are some of the contributing factors that could lead to an "out of stock" result for a business or an organization? How...
-
Conceptually, NP represents the class of decision problems whose "yes" instances can be efficiently verified (without incorrectly accepting any "no" instances). In this problem, you will consider its...
-
Discuss how, when, and by whom the risk register should be utilized and how it impacts successful risk management.?
-
choose a website that is visit frequently by college students.Determine one item from the list below that this website does welland one item that islacking.Detail each and discuss your point of view....
-
Below is a sample of the data in the file NFLAttendance which contains the 32 teams in the National Football League, their conference affiliation, their division, and their average home attendance....
-
Contrast the straight-line method and the units-of-activity method as to (a) Useful life, and (b) The pattern of periodic depreciation over useful life.
-
The following accounts were taken from the financial statements of Crofoot Company. ______ Interest revenue ______ J. Crofoot, Capital ______ Utilities payable ______ Accumulated depreciation ______...
-
On November 1, 2010, the account balances of Morelli Equipment Repair were as follows. During November the following summary transactions were completed.Nov. 8 Paid $1,700 for salaries due employees,...
-
This question is an extension of Exercise 10.22. Consider the data file \(m r o z\) on working wives and the model \(\ln (W A G E)=\beta_{1}+\beta_{2} E D U C+\beta_{3} E X P E R+e\). Use the 428...
-
Consider the data file \(m r o z\) on working wives. Use the 428 observations on married women who participate in the labor force. In this exercise, we examine the effectiveness of alternative...
-
To examine the quantity theory of money, Brumm (2005) ["Money Growth, Output Growth, and Inflation: A Reexamination of the Modern Quantity Theory's Linchpin Prediction," Southern Economic Journal,...
Study smarter with the SolutionInn App