Question: Dvent budgets 18,000 machine-hours for the production of computer chips in August 2011. The budgeted variable overhead rate is $6 per machine-hour. At the end

Dvent budgets 18,000 machine-hours for the production of computer chips in August 2011. The budgeted variable overhead rate is $6 per machine-hour. At the end of August, there is a $375 favorable spending variance for variable overhead and a $1,575 unfavorable spending variance for fixed overhead. For the computer chips produced, 14,850 machine-hours are budgeted and 15,000 machine-hours are actually used. Total actual overhead costs are $120,000.

Required
1. Compute efficiency and flexible-budget variances for Dvent’s variable overhead in August 2011. Will variable overhead be over- or underallocated? By how much?
2. Compute production-volume and flexible-budget variances for Dvent’s fixed overhead in August 2011. Will fixed overhead be over- or underallocated? By how much?

Step by Step Solution

★★★★★

3.39 Rating (152 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Efficiency and flexiblebudget variances for variable overhead Budgeted variable overhead 18000 machi... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Managerial Accounting Questions!

! Required information Use the following information for Problems 21-22 [The following information applies to the questions displayed below.) On November 1, 2020, Good Life Company forecasts the...

Dvent budgets 18,000 machine hours for the production of computer chips in August 2013. The budgeted variable overhead rate is $6 per machine-hour. At the end of August there is a $375 favourable...

Dvent budgets 18,000 machine hours for the production of computer chips in August 2015. The budgeted variable overhead rate is $6 per machine-hour. At the end of August there is a $375 favourable...

In the Haber process for the production of ammonia, N2(g) + 3H2(g) 2NH3(g) What is the relationship between the rate of production of ammonia and the rate of consumption of hydrogen?

Dvent budgets 18,000 machine hours for the production of computer chips in August 2015. The budgeted variable overhead rate is $6 per machine-hour. At the end of August there is a $375 favourable...

Dvent budgets 18,000 machine hours for the production of computer chips in Aug 2015. The budgeted variable overhead rate is $6 per machine-hour. At the end of August there is a $375 F rate variance...

=+12-27 KK Overhead variances, missing information OBJECTIVES 3, 4, 5 Harrison Ltd budgets 18000 machine-hours for the production of calculator chips in August. The budgeted variable overhead rate is...

Variations in indirect costs, lack of information. vent has budgeted 18,000 machine-hours for the production of computer circuitry in August 2011. The budgeted overhead rate variables is $6 per...

Overhead variances, missing information. Dvent budgets 18,000 machine-hours for the production of computer chips in August 2009. The budgeted variable overhead rate is $6 per machine-hour. At the end...

Overhead variances, missing information. Dvent budgets 18,000 machine-hours for the product of computer chips in August 2009. The budgeted variable overhead rate is $6 per machine-hour. At the end of...

Assignment 1 Question 1 Slopes Inc, manufactures and sells snowboards. Slopes manufactures a single model, the Pipex. In the summer of 218, Slopes management accountant gathered the following data to...

IBS Company's unadjusted trial balance on December 31, 2014, the end of its annual accounting period, is as follows: Information necessary to prepare adjusting entries is as follows: a. Employees,...

There was difficulty in determining the end point in the titration due to the color of the food sample and the titration was stopped before the true endpoint was reached. Would the determined...

7. If the projected cashflow for a certain year is $100,000, does this mean that the cashflow for that year would be $100,000?a. yesb. no 7. If the projected cashflow for a certain year is $100,000,...

Trough urine samples were analyzed for sodium content for each of two collection periods, one before and one after administration of Mercuhydrin, for each of 30 dogs. The experimenter used 7 dogs as...

Bill Watts, president of Western Publications, accepts a capital budgeting project proposed by Division X. this is the division in which the president spent his first 10 years with the company. ON...

Distinguish different categories of cash flows to be considered in an equipment replacement decision by a taxpaying company.

A $10,000, 5% bond redeemable at par with semi-annual coupons bought ten years before maturity to yield 8% compounded semi-annually is sold four years before maturity at 101.375. Find the gain or...

Which of these statements is the least credible and trustworthy? According to the SEC, the value of the Human Fund's assets have increased by 5%. Investing in any stock or security comes with risk....

10. A $2 million jumbo CD is paying a quoted 3.55% interest rate on 6-month maturity CDs. If after the CD is issued, the market rate on the CD falls to 3.2%. What is the secondary market price of the...