Problem E9-18

CHAPTER 9 Standard Costing and Variance Analys E9-17 Calculating Fixed Manufacturing Overhead Capacity Variances LO 9-$1 Haives Manufacturing Company (HMC) bases its fixed overhead rate on practical capacity of 80,000 units per year. Budgeted and actual results for the most recent year follow Budgeted Fixed manufacturing overhead Number of units produced $540,000 70,000 $520,000 75,000 Required Calculate the following for HMC: 1. Fixed overhead rate based on practical capacity 2. Fixed overhead spending variance. 3. Expected (planned) capacity variance. 4. Unexpected (unplanned) capacity variance. LO 9-4 E9-18 Determining Actual, Standard Costs, and Variances For each of the following independent cases, fill in the missing amounts: Jess Co. Valerie, Inc. Casey Co. Kevin, Inc. 120 1,500 2,000 Units produced Standard hours per unit Standard hours Standard rate per hour Actual hours worked Actual labor cost Direct labor rate variance Direct labor efficiency variance 3.5 0.9 300 $10.50 900 975 $975 F $14.50 6,800 $7 4,900 $3,090 $31,850 $ 150 U $1,700 F $? $765 U s 2.800U connect GROUP A PROBLEMS PA9-1 Calculating Direct Material, Direct Labor, Variable Overhead Variances Barley Hopp. Inc., manufactures custom-ordered commemorative beer steins. Its standard cot LO 9-3,9 information follows: Standard Price (Rate) Standa Unit Co Standard Quantity 1.5 lbs. 1.5 hrs 1.5 hrs Direct materials (clay) Direct labor Variable manufacturing overhead $ 1.60 per lb $12.00 per hr s 1.20 per hr $ 2.40 18.00 based on direct labor hours) Fixed manufacturing overhead ($250,000+100,000 units) 2.5 Barley Hopp had the following actual results last year