Alden Company uses a three-variance analysis for factory overhead variances. Practical capacity is defined as 34...

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Alden Company uses a three-variance analysis for factory overhead variances. Practical capacity is defined as 34 setups and 34,000 machine hours to manufacture 8,500 units for the year. Selected data for 2019 follow: Budgeted fixed factory overhead: Setup cost other $ 57,800 144,000 $201,800 $493,000 Total factory overhead cost incurred Variable factory overhead rate: Per setup $ 700 Per machine hour $ Total standard machine hours allowed for the units manufactured 8.00 26,000 hours Machine hours actually worked 28,500 hours 30 Actual total number of setups Actual number of units produced during the year 6,500 Standard number of setups for units produced during the year 26 Required: 1. Compute: (a) the total overhead spending variance, (b) the overhead efficiency variance, and (c) the total overhead flexible-budget variance for 2019. Label each variance as favorable (F) or unfavorable (U). 2. Assume that the company includes all setup costs as variable factory overhead. The budgeted total fixed overhead, therefore, is $144,000, and the standard variable overhead rate per setup is $2,400. What is: (a) the total overhead spending variance, (b) the overhead efficiency variance, and (c) the total overhead flexible-budget variance for the year? Label each variance as favorable (F) or unfavorable (U). 3. Assume that the company uses only machine hours as the activity measure to apply both variable and fixed overhead, and that it includes all setup costs as variable factory overhead. What is (a) the Total Overhead Spending Variance, (b) the Overhead Efficiency Variance, and (c) total Overhead Flexible-Budget Variance for the year? Indicate whether each variance is favorable (F) or unfavorable (U). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume that the company uses only machine hours as the activity measure to apply both variable and fixed overhead, and that it includes all setup costs as variable factory overhead. What is (a) the Total Overhead Spending Variance, (b) the Overhead Efficiency Variance, and (c) total Overhead Flexible-Budget Variance for the year? Indicate whether each variance is favorable (F) or unfavorable (U). Show less Required 1 Required 2 Required 3 Assume that the company uses only machine hours as the activity measure to apply both variable and fixed overhead, and that it includes all setup costs as variable factory overhead. What is (a) the Total Overhead Spending Variance, (b) the Overhead Efficiency Variance, and (c) total Overhead Flexible-Budget Variance for the year? Indicate whether each variance is favorable (F) or unfavorable (U). Show less (a) Spending variance (b) Efficiency variance < Required 2 Required 3 > (c) Flexible-budget variance Alden Company uses a three-variance analysis for factory overhead variances. Practical capacity is defined as 34 setups and 34,000 machine hours to manufacture 8,500 units for the year. Selected data for 2019 follow: Budgeted fixed factory overhead: Setup cost other $ 57,800 144,000 $201,800 $493,000 Total factory overhead cost incurred Variable factory overhead rate: Per setup $ 700 Per machine hour $ Total standard machine hours allowed for the units manufactured 8.00 26,000 hours Machine hours actually worked 28,500 hours 30 Actual total number of setups Actual number of units produced during the year 6,500 Standard number of setups for units produced during the year 26 Required: 1. Compute: (a) the total overhead spending variance, (b) the overhead efficiency variance, and (c) the total overhead flexible-budget variance for 2019. Label each variance as favorable (F) or unfavorable (U). 2. Assume that the company includes all setup costs as variable factory overhead. The budgeted total fixed overhead, therefore, is $144,000, and the standard variable overhead rate per setup is $2,400. What is: (a) the total overhead spending variance, (b) the overhead efficiency variance, and (c) the total overhead flexible-budget variance for the year? Label each variance as favorable (F) or unfavorable (U). 3. Assume that the company uses only machine hours as the activity measure to apply both variable and fixed overhead, and that it includes all setup costs as variable factory overhead. What is (a) the Total Overhead Spending Variance, (b) the Overhead Efficiency Variance, and (c) total Overhead Flexible-Budget Variance for the year? Indicate whether each variance is favorable (F) or unfavorable (U). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume that the company uses only machine hours as the activity measure to apply both variable and fixed overhead, and that it includes all setup costs as variable factory overhead. What is (a) the Total Overhead Spending Variance, (b) the Overhead Efficiency Variance, and (c) total Overhead Flexible-Budget Variance for the year? Indicate whether each variance is favorable (F) or unfavorable (U). Show less Required 1 Required 2 Required 3 Assume that the company uses only machine hours as the activity measure to apply both variable and fixed overhead, and that it includes all setup costs as variable factory overhead. What is (a) the Total Overhead Spending Variance, (b) the Overhead Efficiency Variance, and (c) total Overhead Flexible-Budget Variance for the year? Indicate whether each variance is favorable (F) or unfavorable (U). Show less (a) Spending variance (b) Efficiency variance < Required 2 Required 3 > (c) Flexible-budget variance

Answer rating: 100% (QA)

Requirement 1 Standard Manufacturing HoursMH per unit3400085004hrs unit Standard no of units m... View the full answer