The following data are the actual results for Marvelous Marshmallow Company for October.

Standard cost and budget information for Marvelous Marshmallow Company follows:

Required:

1. Use any of the methods explained in the chapter to compute the following variances. Indicate whether each variance is favorable or unfavorable, where appropriate.

a. Variable-overhead spending variance.

b. Variable-overhead efficiency variance.

c. Fixed-overhead budget variance.

d. Fixed-overhead volume variance.

2. Build a spreadsheet: Construct an Excel spreadsheet to solve the preceding requirement. Show how the solution will change if the following information changes: actual output was 9,100 cases, and actual variable overhead was $395,000.

Transcribed Image Text:

Actual output 9,000 cases Actual variable overhead. $405,000 Actual fixed overhead $122,000 Actual machine time 40,500 machine hours Actual output 9,000 cases Actual variable overhead. $405,000 Actual fixed overhead $122,000 Actual machine time 40,500 machine hours

Answer rating: 100% (QA)

Step 1 of 5 1 Calculate overhead cost variance as follows Standard time required for one completed u... View the full answer