Good Deal, Inc. uses a standard cost system and provides the following information. (Click the icon...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Good Deal, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Good Deal allocates manufacturing overhead to production based on standard direct labor hours. Good Deal reported the following actual results for 2018: actual number of units produced, 1,000, actual variable overhead. $2.500. actual fixed overhead, $2,800, actual direct labor hours, 1.200. Read the requirements Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U) (Abbreviations used AC actual cost. AQ actual quantity: FOH= fixed overhead, SC standard cost, SQ standard quantity: VOH variable overhead) VOH cost variance VOH efficiency variance Formula Variance Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume variances, and Identify whether each variance is favorable (F) or unfavorable (U) (Abbreviations used AC actual cost, AQ = actual quantity; FOH fixed overhead; SC standard cost, SQ = standard quantity) FOH cost variance FOH volume variance Formula Variance Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is hour. The variable overhead efficiency variance is applied (incurred) based on direct labor The fixed overhead cost variance is The fixed overhead volume variance is overhead cost because the actual cost per direct labor hour was than the standard cost per direct labor because management used direct labor hours than standard and variable overhead is than the amount budgeted for total fixed overhead. because total fixed overhead cost allocated to units was than the total budgeted fixed because the total fixed overhead cost was Choose from any list or enter any number in the input fields and then continue to the next question. Good Deal, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Good Deal allocates manufacturing overhead to production based on standard direct labor hours. Good Deal reported the following actual results for 2018: actual number of units produced, 1,000, actual variable overhead. $2.500. actual fixed overhead, $2,800, actual direct labor hours, 1.200. Read the requirements Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U) (Abbreviations used AC actual cost. AQ actual quantity: FOH= fixed overhead, SC standard cost, SQ standard quantity: VOH variable overhead) VOH cost variance VOH efficiency variance Formula Variance Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume variances, and Identify whether each variance is favorable (F) or unfavorable (U) (Abbreviations used AC actual cost, AQ = actual quantity; FOH fixed overhead; SC standard cost, SQ = standard quantity) FOH cost variance FOH volume variance Formula Variance Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is hour. The variable overhead efficiency variance is applied (incurred) based on direct labor The fixed overhead cost variance is The fixed overhead volume variance is overhead cost because the actual cost per direct labor hour was than the standard cost per direct labor because management used direct labor hours than standard and variable overhead is than the amount budgeted for total fixed overhead. because total fixed overhead cost allocated to units was than the total budgeted fixed because the total fixed overhead cost was Choose from any list or enter any number in the input fields and then continue to the next question.
Expert Answer:
Answer rating: 100% (QA)
To compute the variances we need additional information such as ... View the full answer
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
Students also viewed these accounting questions
-
During mango season, Charlotte bought 5 baskets of mangoes from a supplier. After a few days, 3/5 of the fruits were already ripe. The green mangoes were sold at Php40 per kg while the ripe ones were...
-
Good Deal, Inc. is a competitor of Bargain, Inc. from Exercise E23-18. Good Deal also uses a standard cost system and provides the following information: Static budget variable overhead.........$...
-
1. Draw the moment arm for gravity on the shank creating torque around the knee joint (blue circle). 2. Draw the moment arm for gravity on the shank creating torque around the hip joint (orange...
-
Alistair bought a house on 1 April 2000 for 125,000 and occupied the entire house as his principal private residence until 1 November 2008. As from that date, he rented out two rooms (comprising...
-
What are the Big Five personality traits? Which one seems to have the biggest impact on performance? How would knowledge of the Big Five help you in your job as a manager?
-
Explain the concepts of expected value of sample information and expected value of perfect information.
-
Happy Dog Company, a manufacturer of dog food, produces its product in 1,000-bag batches. The standard cost of each batch consists of 8,000 pounds of direct materials at \($0.60\) per pound, 48...
-
What are the ethical implications for leaders who ignore the impacts of severe workplace stress on their employees?
-
Complete the square of the given quadratic expression. Then, graph the function using the technique of shifting. f(x)=x-8x+13 Complete the square by entering the correct numbers into the expression...
-
How can organizations use data analytics and business intelligence in operations management decision-making?
-
On January 1, 2024, Stone leased an office building. Terms of the lease require Stone to make 20 annual lease payments of $129,000 beginning on January 1, 2024. A 12% interest rate is implicit in the...
-
1. Consider the problem of returning change to a customer requiring the smallest number of coins. a. Show that the greedy algorithm given below returns the smallest number of coins for the coin set...
-
Write an essay explain to whether the Iranian Revolution was a counter-Enlightenment in the Islamic World or a response to Western Imperialism.
-
Machine hours and electricity costs for Wells Industries for the most recent year are as follows: Month Machine Hours Electricity Costs January 2,000 $9,221 February 2,320 $10,500 March 1,520 $6,774...
-
Palm Time Inc. budgeted 6,000 step stools for June under its standard costing system. Each stool is sold for $22. Actual production for June was 6,300 stools. The company uses units of product as the...
-
Married taxpayers David and Lillian Perdue file jointly and have a daughter aged under age 17, their Taxable income is $109,122, and paid an after-school childcare expense of $2,800. Calculate the...
-
Research corporate acquisitions using Web resources and then answer the following questions: Why do firms purchase other corporations? Do firms pay too much for the acquired corporation? Why do so...
-
The key decision to delete a product or department is identifying avoidable costs. Do you agree? Explain.
-
Suppose the historical costs for the manufacture of a calculator were as follows: direct materials, $5 per unit; direct labour, $3 per unit. Management is trying to decide whether to replace some...
-
Give four examples of limiting factors (or scarce resources).
Study smarter with the SolutionInn App