Galactic Gaming produces handheld gaming devices. The company plans for production of 200,000 units per quarter....
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Galactic Gaming produces handheld gaming devices. The company plans for production of 200,000 units per quarter. At the beginning of the year, Galactic Gaming estimates the following quarterly costs will be incurred for the planned production: Cost Facilities rent Utilities Taxes Production employee wages Shipping and handling employees' wages and benefits Management salaries and benefits Direct materials for cookware Supplies Equipment rental Advertising Repairs and maintenance Quarterly Estimate $ 90,000 $ 54,000 $ 25,000 $ 700,000 $ 200,000 $ 300,000 $ 265,000 $145,000 $ 30,000 $ 65,000 $ 50,000 Travel Budgeted machine hours are 0.50 per unit. Actual production results and costs per quarter are as follows: Actual Production Actual Machine Hours per Unit Q1 200,000 0.5 Facilities rent Utilities Taxes Production employee wages Shipping and handling employees' wages and benefits Management salaries and benefits Direct materials for cookware Supplies Equipment rental Advertising Repairs and maintenance Travel a. Calculate the variances. $ 95,000 Q2 205,000 0.6 $ 90,000.00 $ 90,000.00 $ 50,000.00 $ 58,000.00 $ 25,000.00 $ 26,500.00 $ 26,500.00 Q3 180,000 0.75 $ 90,000.00 $ 62,000.00 Q4 190,000 0.70 $ 90,000.00 $ 49,000.00 $ 26,500.00 $ 710,000.00 $ 816,500.00 $ 825,000.00 $ 810,000.00 $ 198,000.00 $ 199,000.00 $ 199,000.00 $ 210,000.00 $ 300,000.00 $ 325,000.00 $ 325,000.00 $ 325,000.00 $ 270,300.00 $ 262,350.00 $ 267,597.00 $ 267,597.00 $ 142,000.00 $ 20,000.00 $ 65,000.00 $ 30,000.00 $ 140,000.00 $ 20,000.00 $ 65,000.00 $ 30,000.00 $ 141,000.00 $ 144,000.00 $ 40,000.00 $ 25,000.00 $ 65,000.00 $ 90,000.00 $ 90,000.00 $ 75,000.00 $ 90,000.00 $ 65,000.00 $ 60,000.00 $ 90,000.00 Required: a. Calculate the VOH Efficiency Variance, VOH Spending Variance, FOH Spending Variance, and Production-Volume Variance for each quarter. Note: Round your answers 2 decimal places. Variance Variable overhead (VOH) Efficiency Variance Variable overhead (VOH) Spending Variance Fixed overhead (FOH) Spending Variance Production-Volume Variance (PVV) Q1 Q2 Q3 Q4 Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Favorable Unfavorable Unfavorable Unfavorable None Favorable Unfavorable Unfavorable Galactic Gaming produces handheld gaming devices. The company plans for production of 200,000 units per quarter. At the beginning of the year, Galactic Gaming estimates the following quarterly costs will be incurred for the planned production: Cost Facilities rent Utilities Taxes Production employee wages Shipping and handling employees' wages and benefits Management salaries and benefits Direct materials for cookware Supplies Equipment rental Advertising Repairs and maintenance Quarterly Estimate $ 90,000 $ 54,000 $ 25,000 $ 700,000 $ 200,000 $ 300,000 $ 265,000 $145,000 $ 30,000 $ 65,000 $ 50,000 Travel Budgeted machine hours are 0.50 per unit. Actual production results and costs per quarter are as follows: Actual Production Actual Machine Hours per Unit Q1 200,000 0.5 Facilities rent Utilities Taxes Production employee wages Shipping and handling employees' wages and benefits Management salaries and benefits Direct materials for cookware Supplies Equipment rental Advertising Repairs and maintenance Travel a. Calculate the variances. $ 95,000 Q2 205,000 0.6 $ 90,000.00 $ 90,000.00 $ 50,000.00 $ 58,000.00 $ 25,000.00 $ 26,500.00 $ 26,500.00 Q3 180,000 0.75 $ 90,000.00 $ 62,000.00 Q4 190,000 0.70 $ 90,000.00 $ 49,000.00 $ 26,500.00 $ 710,000.00 $ 816,500.00 $ 825,000.00 $ 810,000.00 $ 198,000.00 $ 199,000.00 $ 199,000.00 $ 210,000.00 $ 300,000.00 $ 325,000.00 $ 325,000.00 $ 325,000.00 $ 270,300.00 $ 262,350.00 $ 267,597.00 $ 267,597.00 $ 142,000.00 $ 20,000.00 $ 65,000.00 $ 30,000.00 $ 140,000.00 $ 20,000.00 $ 65,000.00 $ 30,000.00 $ 141,000.00 $ 144,000.00 $ 40,000.00 $ 25,000.00 $ 65,000.00 $ 90,000.00 $ 90,000.00 $ 75,000.00 $ 90,000.00 $ 65,000.00 $ 60,000.00 $ 90,000.00 Required: a. Calculate the VOH Efficiency Variance, VOH Spending Variance, FOH Spending Variance, and Production-Volume Variance for each quarter. Note: Round your answers 2 decimal places. Variance Variable overhead (VOH) Efficiency Variance Variable overhead (VOH) Spending Variance Fixed overhead (FOH) Spending Variance Production-Volume Variance (PVV) Q1 Q2 Q3 Q4 Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Favorable Unfavorable Unfavorable Unfavorable None Favorable Unfavorable Unfavorable
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
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