Requirement 1. Compute the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Requirement 1. Compute the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead. Begin by computing the following amounts for the variable manufacturing overhead. Actual Input Qty. Actual Costs Incurred Budgeted Rate Flexible Budget Allocated Overhead Now compute the variances: flexible-budget variance, then spending variance, and finally the efficiency variance. Label each variance as favorable (F) or unfavorable (U). Flexible-budget variance Spending variance Efficiency variance Requirement 2. Comment on the results. Modern Mode had budgeted. spending variance because the actual variable overhead rate per direct manufacturing labor-hour was than the budgeted. It had efficiency variance because each suit averaged labor-hours than i More Info Variable manufacturing overhead cost is allocated to each suit on the basis of budgeted direct manufacturing labor-hours per suit. For June 2017, each suit is budgeted to take 3 labor-hours. Budgeted variable manufacturing overhead cost per labor-hour is $15. The budgeted number of suits to be manufactured in June 2017 is 1,140. Actual variable manufacturing costs in June 2017 were $62,720 for 1,180 suits started and completed. There were no beginning or ending inventories of suits. Actual direct manufacturing labor-hours for June were 4,480. Requirements Print -X Done Print Done - X 1. Compute the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead. 2. Comment on the results. Requirement 1. Compute the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead. Begin by computing the following amounts for the variable manufacturing overhead. Actual Input Qty. Actual Costs Incurred Budgeted Rate Flexible Budget Allocated Overhead Now compute the variances: flexible-budget variance, then spending variance, and finally the efficiency variance. Label each variance as favorable (F) or unfavorable (U). Flexible-budget variance Spending variance Efficiency variance Requirement 2. Comment on the results. Modern Mode had budgeted. spending variance because the actual variable overhead rate per direct manufacturing labor-hour was than the budgeted. It had efficiency variance because each suit averaged labor-hours than i More Info Variable manufacturing overhead cost is allocated to each suit on the basis of budgeted direct manufacturing labor-hours per suit. For June 2017, each suit is budgeted to take 3 labor-hours. Budgeted variable manufacturing overhead cost per labor-hour is $15. The budgeted number of suits to be manufactured in June 2017 is 1,140. Actual variable manufacturing costs in June 2017 were $62,720 for 1,180 suits started and completed. There were no beginning or ending inventories of suits. Actual direct manufacturing labor-hours for June were 4,480. Requirements Print -X Done Print Done - X 1. Compute the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead. 2. Comment on the results.
Expert Answer:
Answer rating: 100% (QA)
One suit takes 3 labour hours In the month of June Labour hour taken were 4480 So 1 suit ... View the full answer
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
Posted Date:
Students also viewed these general management questions
-
E & T Excavation Company is planning an investment of $245,000 for a bulldozer. The bulldozer is expected to operate for 1,500 hours per year for five years. Customers will be charged $130 per hour...
-
E & T Excavation Company is planning an investment of $245,000 for a bulldozer. The bulldozer is expected to operate for 1,500 hours per year for five years. Customers will be charged $130 per hour...
-
Cost rates for peak- and nonpeak-hour capacity usage XZ Discount Brokerage is trying to determine the cost of supplying computing resources in order to determine how much to charge for trades. The...
-
What are the advantages and disadvantages of seismic reflection data sets?
-
Suppose that X1, . . . , Xn form a random sample of size n from the exponential distribution with parameter . Determine the distribution of the sample mean Xn.
-
An agent acting with actual authority to sign a contract is a party to the contract and shares contract liability with the principal. a. True b. False
-
Suppose Ironman, Inc., lost all of its inventory in a flood. Beginning inventory was \($43,000,\) net purchases totaled \($524,000,\) and sales came to \($875,000.\) Ironmans normal gross profit...
-
Big Blue Rental Corp. provides rental agent services to apartment building owners. Big Blue Rental Corp.'s preliminary income statement for August 2010, and its August 31, 2010, preliminary balance...
-
Using the Southwest Airline Activity as reference and familiarity of the components of Congruency Analysis being (Strategy, Formal, Informal, People, Tasks, Outcomes, Leadership, External Resources...
-
Chumpy Lighting Limited manufactures a wide variety of light bulbs which it sells to lighting shops and builders merchants through wholesale distributors. It also sells direct to the big UK...
-
1. With reference to the relay schematic diagram in Figure 7-37 (shown in next page), a. State the status of each light after each of the following sequential events. Write "on" or "off in the table...
-
A scuba diving school has been given the opportunity to purchase a sunken shipwreck for just $25,000, giving trainee scuba divers the opportunity to navigate through the ship as part of their...
-
Two charges of +8.0 * 10^-9 C and +4.0 * 10^-9 C are held a distance of 0.20 m A. Calculate the magnitude and direction of the electric field strength at the midpoint between the B. Calculate the...
-
Is linux and Ubuntu the same or is Ubuntu an distributor of linux ? Can I use Ubuntu just i would linux ?
-
If the initial angular velocity is - 3 . 1 rad / s , then what is the angular velocity, in radians per second, at time 2 3 . 7 5 s ? A detailed graph of angular acceleration versus time is shown....
-
After many years, Unilever displays the image of a company that works for good causes. Unilever's ideals are very simple, but have a clear vision, namely promoting sustainable living. Unilever...
-
A. Evaluate the following definite integral: 1. sin x cos 0 dx 2. -0 dy Itex B. Determine the area of the following region bounded by the given curves: Sketch the region: 1. x+3y=4, x-2y=4 2. y = 2x,...
-
Bobbie Singh provides writing services for small businesses. He blogs for companies that need professionally written content. His business records at November 15, 2023, are shown below: During the...
-
What is operational productivity? Financial productivity?
-
Depreciation expenses have no effect on cash flows and, therefore, are not relevant in capital expenditure analysis. Do you agree? Why or why not?
-
The Monetary Control Act of 1980 (www.federalreserve .gov/paymentsystems/pricing/pricingpol.htm) requires the Federal Reserve (FED) to charge explicitly for certain services, in effect placing...
-
Calculate the volume occupied by isopropanol vapour at \(200^{\circ} \mathrm{C}\) and 10 bar by using (a) Ideal gas equation of state (b) Virial equation of state (c) Virial equation of state \[...
-
The Dieterici equation of state is given by \[ P(V-b) \exp \left(\frac{a}{R T V} ight)=R T \] where \(a\) and \(b\) are constants. Develop the relations to determine the constants \(a\) and \(b\) in...
-
At \(17^{\circ} \mathrm{C}\), at constant pressure, the heat of combustion of amorphous carbon is 96960 cal and that of \(\mathrm{CO}\) to \(\mathrm{CO}_{2}\) is \(67960 \mathrm{cal}\). Determine the...
Study smarter with the SolutionInn App