Question: Adams Company established a predetermined variable overhead cost rate at $10.00 per direct labor hour. The actual variable overhead cost rate was $9.10 per hour.

Adams Company established a predetermined variable overhead cost rate at $10.00 per direct labor hour. The actual variable overhead cost rate was $9.10 per hour. The planned level of labor activity was 74,500 hours of labor. The company actually used 79,000 hours of labor.

Required

  1. Determine the total flexible budget variable overhead cost variance and indicate the effect of the variance by selecting favorable (F) or unfavorable (U).

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
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 Accounting Questions!

Q:

From the income statement, determine the income tax expense for the year ended February 1, 2020. Tie that number to the second table in Disclosure Note 18, Provision for Income Taxes, and prepare a...

Q:

Rooney Company established a predetermined variable overhead cost rate at $10.10 per direct labor hour. The actual variable overhead cost rate was $9.40 per hour. The planned level of labor activity...

Q:

Wallis car wash Inc. expected to wash 2000 cars during the month of August. Washing each car was expected to require 0.2 hours of labor. The company actually used 420 hours of labor to wash 1880...

Q:

Wallis car wash Inc. expected to wash 2000 cars during the month of August. Washing each car was expected to require 0.2 hours of labor. The company actually used 420 hours of labor to wash 1880...

Q:

Gibson Fruit Drink Company planned to make 2 0 3 , 0 0 0 containers of apple juice. It expected to use two cups of frozen apple concentrate to make each container of juice, thus using 4 0 6 , 0 0 0...

Q:

Adams Company established a predetermined variable overhead cost rate at $ 1 7 . 5 0 per direct labor hour. The actual variable overhead cost rate was $ 1 5 . 8 0 per hour. The planned level of labor...

Q:

Cheney Company established a predetermined variable overhead cost rate at $21.00 per direct labor hour. The actual variable overhead cost rate was $19.20 per hour. The planned level of labor activity...

Q:

Cheney Company established a predetermined variable overhead cost rate at $21.00 per direct labor hour. The actual variable overhead cost rate was $19.20 per hour. The planned level of labor activity...

Q:

Finch Company established a predetermined variable overhead cost rate at $9.60 per direct labor hour. The actual variable overhead cost rate was $8.40 per hour. The planned level of labor activity...

Q:

Gibson Fruit Drink Company planned to make 2 0 3 , 0 0 0 containers of apple juice. It expected to use two cups of frozen apple concentrate to make each container of juice, thus using 4 0 6 , 0 0 0...

Q:

Adams Company established a predetermined variable overhead cost rate at $9.90 per direct labor hour. The actual variable overhead cost rate was $9.00 per hour. The planned level of labor activity...

Q:

Marie-Eve and Samuel are meeting for the first time with a financial planner at their financial institution. They are planning the purchase of their first home by the end of this year and want to...

Q:

1.What is meant by the term hierarchical organization of cells from tissues, to organs, to systems in animals and plants? Give a detailed description to demonstrate your understanding. 2.As the newly...

Q:

determine whether the following series converges integral k = 0 to infinity 2 ( - 1 ) ^ k / 5 k + 5 . let ak > 0 represent the magnitude of the terms of the given series.

Q:

Analyzing an L-R-C Circuit. You have a 200- resistor, a 0.400-H inductor, a 5.00-F capacitor, and a variable-frequency ac source with an amplitude of 3.00 V. You connect all four elements together to...

Q:

Two polarizers are oriented at 38.0o to one another. Light polarized at a 19.0o angle to each polarizer passes through both. What percent reduction in intensity takes place?

Q:

Two long, parallel wires hang by 4.00-cm-Iong cords from a common axis (Fig). The wires have a mass per unit length of 0.0125 kg/m and carry the same current in opposite directions. What is the...

Q:

In the situation described in Problem 20 and illustrated in Figure P12.20, the lift cable suddenly breaks! The hinge between the castle wall and the bridge is frictionless, and the bridge swings...

Q:

A company has capital of $200,000,000. It has an expected ROIC of 9 percent, forecasted constant growth of 5 percent, and a WACC of 10 percent. What is its value of operations? What is its MVA?

Q:

Five S ( 5 S ) practices can enable workers to visually see everything differently, prioritize tasks, and achieve a greater degree of focus. True False

Q:

Explain the development of human resource management (HRM)

Q:

Based on what you know about Carter Cleaning Centres, outline the steps of what you think would be an ideal grievance process for this company. On visiting one of the cleaning locations, Jennifer was...

Q:

In addition to the grievance process, can you think of anything else that Carter Cleaning Centres might do to ensure that grievances can be expressed and shared with top management without fear of...