Hi can someone help me with question 4 please? How do I calculate fixed overhead budgeted variance and fixed overhead volume variance?

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523 PM Mon Apr4 Done AA A ezto.mheducation.com Chapter 11 Problem Set i Save & Exit Saved Help Submit Check my work 1 Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The standard cost for one pool is as follows: Standard Quantity Standard or Hours 1.30 kilograms 10 Standard Price or Rate Cost Direct materials $ 5.20 $4.00 per kilogram $5.00 per hour $2.00 per machine-hour points Direct labour 0.80 hours 4.00 Variable manufacturing overhead 0.50 machine-hours 1.00 Total standard cost $10.20 еВook The plant has been experiencing problems for some time, as is shown by its June income statement when it made and sold 15,200 pools; the normal volume is 15,350 pools per month. Fixed costs are allocated using machine-hours. Print Flexible Budgeted $456,000 Actual Sales (15,200 pools) Less: Variable expenses: $456,000 References 155,040 20,300 175,340 280,660 Variable cost of goods sold* Variable selling expenses 200,329 20,300 Total variable expenses 220,629 235,371 Contribution margin Less: Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses 132,000 85,120 217,120 $ 18,251 132,000 85,120 217,120 $ 63,540 Net income *Contains direct materials, direct labour, and variable manufacturing overhead. Janet Dunn, the general manager of the Westwood Plant, wants to get things under control. She needs information about the operations in June since the income statement signalled that the problem could be due to the variable cost of goods sold. Dunn learns the following about operations and costs in June: a. 30,400 kilograms of materials were purchased at a cost of $3.70 per kilogram. b. 24,600 kilograms of materials were used in production. (Finished goods and work-in-process inventories are insignificant and can be ignored.) c. 11,900 direct labour-hours were worked at a cost of $8 per hour. d. Variable manufacturing overhead cost totalling $15,849 for the month was incurred. A total of 5,870 machine-hours was recorded. It is the company's policy to close all variances to cost of goods sold on a monthly basis. Mc Graw Hill < Prev 1 of 1 Next 523 PM Mon Apr4 Done AA A ezto.mheducation.com Chapter 11 Problem Set i Save & Exit Saved Help Submit Check my work 1 Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The standard cost for one pool is as follows: Standard Quantity Standard or Hours 1.30 kilograms 10 Standard Price or Rate Cost Direct materials $ 5.20 $4.00 per kilogram $5.00 per hour $2.00 per machine-hour points Direct labour 0.80 hours 4.00 Variable manufacturing overhead 0.50 machine-hours 1.00 Total standard cost $10.20 еВook The plant has been experiencing problems for some time, as is shown by its June income statement when it made and sold 15,200 pools; the normal volume is 15,350 pools per month. Fixed costs are allocated using machine-hours. Print Flexible Budgeted $456,000 Actual Sales (15,200 pools) Less: Variable expenses: $456,000 References 155,040 20,300 175,340 280,660 Variable cost of goods sold* Variable selling expenses 200,329 20,300 Total variable expenses 220,629 235,371 Contribution margin Less: Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses 132,000 85,120 217,120 $ 18,251 132,000 85,120 217,120 $ 63,540 Net income *Contains direct materials, direct labour, and variable manufacturing overhead. Janet Dunn, the general manager of the Westwood Plant, wants to get things under control. She needs information about the operations in June since the income statement signalled that the problem could be due to the variable cost of goods sold. Dunn learns the following about operations and costs in June: a. 30,400 kilograms of materials were purchased at a cost of $3.70 per kilogram. b. 24,600 kilograms of materials were used in production. (Finished goods and work-in-process inventories are insignificant and can be ignored.) c. 11,900 direct labour-hours were worked at a cost of $8 per hour. d. Variable manufacturing overhead cost totalling $15,849 for the month was incurred. A total of 5,870 machine-hours was recorded. It is the company's policy to close all variances to cost of goods sold on a monthly basis. Mc Graw Hill < Prev 1 of 1 Next

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Using the data prouided Fixed over head budgest Budgetet Actua... View the full answer