Records at the Farnsworth Corporation contained the following data for the most recent period of activity: Actual total direct labor cost $ 511, 150 Actual direct labor-hours worked i Standard direct labor-hours allowed for actual output (flexible budget) Direct labor price variance Actual variable overhead Standard variable overhead rate per standard direct labor-hour Variable overhead is applied based on standard direct labor-hours allowed. Required: Compute the labor and variable overhead price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct labor Price variance Efficiency variance Variable overhead: Price variance Efficiency variance 15,300 14,600 $47,300 F $ 349,300 $21

Records at the Farnsworth Corporation contained the following data for the most recent period of activity: Actual total direct labor cost $ 511, 150 Actual direct labor-hours worked i Standard direct labor-hours allowed for actual output (flexible budget) Direct labor price variance Actual variable overhead Standard variable overhead rate per standard direct labor-hour Variable overhead is applied based on standard direct labor-hours allowed. Required: Compute the labor and variable overhead price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct labor Price variance Efficiency variance Variable overhead: Price variance Efficiency variance 15,300 14,600 $47,300 F $ 349,300 $21

Name: Gadubhai Exercise 16-42 (Algo) Variable Cost Variances (LO 16-5)Record
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Description: Gadubhai Exercise 16-42 (Algo) Variable Cost Variances (LO 16-5)Records at the Farnsworth Corporation contained the following data for the most recent period of activity:Actual total direct labor costActual direct labor-hours worked iStandard direct

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 23E: (Appendix) Calculating factory overhead: three variances Using the data given in E8-17, calculate...

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(Appendix) Calculating factory overhead: three variances Using the data given in E8-17, calculate the following overhead variances: a. Spending variance. b. Production-volume variance. c. Efficiency variance. d. Was the factory overhead under- or overapplied? By what amount? In all problems involving variances, use F and U to indicate favorable and unfavorable variances, respectively.
Kamen Manufacturing Co. estimates the following labor and overhead costs for the period: Required: Use the four-variance method for overhead analysis. Calculate the variances for direct labor and overhead. Prove that the overhead variances equal over- or underapplied factory overhead for the period.
Mulliner Company showed the following information for the year: Required: 1. Calculate the standard direct labor hours for actual production. 2. Calculate the applied variable overhead. 3. Calculate the total variable overhead variance.
The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below: Standard Quantity Standard Price Standard Cost or Rate $ 0.20 per millilitre $15.00 per hour or Hours Direct materials Direct labour 6.0 millilitres 0.2 hours $1.20 $3.00 During the most recent month, the following activity was recorded: a. 20,000 millilitres of material was purchased at a cost of $0.25 per millilitre. b. All of the material was used to produce 3,000 bottles of Clean-All. c. 625 hours of direct labour time was recorded at a total labour cost of $10,000. Required: 1. Compute the direct materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Materials price variance Materials quantity variance
Records at the Farnsworth Corporation contained the following data for the most recent period of activity: Actual total direct labor cost Actual direct labor-hours worked Direct labor: Standard direct labor-hours allowed for actual output (flexible budget) Direct labor price variance Actual variable overhead Standard variable overhead rate per standard direct labor-hour Variable overhead is applied based on standard direct labor-hours allowed. Required: Compute the labor and variable overhead price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Price variance Efficiency variance $ 511,150 Variable overhead: Price variance Efficiency variance 15,300 14,600 $47,300 F $ 349,300 $ 21
Records at the Farnsworth Corporation contained the following data for the most recent period of activity: Actual total direct labor cost Actual direct labor-hours worked Standard direct labor-hours allowed for actual output (flexible budget) Direct labor price variance Actual variable overhead Standard variable overhead rate per standard direct labor-hour Variable overhead is applied based on standard direct labor-hours allowed. Direct labor: Price variance Efficiency variance Required: Compute the labor and variable overhead price and efficiency variances. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Variable overhead: Price variance Efficiency variance $ 48,000 X F ✓ $ 16,000 X U $ 468,100 $ 5,000 X F $ 8,000 U 15,100 14,200 $45,300 F $347,300 $ 22
Haliburton Mills Inc. is a large producer of men's and women's clothing. The company uses standard costs for all of its products. The standard costs and actual costs for a recent period are given below for one of the company's product lines (per unit of product): Standard Cost Actual Cost Direct materials: Standard: 2.0 metres at $4.50 per metre Actual: 2.4 metres at $4.25 per metre Direct labour: Standard: 2.4 hours at $3.50 per hour Actual: 2.0 hours at $3.85 per hour $ 9.00 $10.20 8.48 7.70 Variable manufacturing overhead: Standard: 2.4 hours at $3.00 per hour Actual: 2.0 hours at $3.65 per hour 7.20 7.30 Fixed manufacturing overhead: Standard: 2.4 hours at $3.90 per hour Actual: 2.0 hours at $3.95 per hour Total cost per unit 9.36 7.90 $33.96 $ 33.10 Actual costs: 4,580 units at $33.10 Standard costs: 4,500 units at $33.96 Difference in cost-favourable $148,950 152,820 $ 3,870 During this period, the company produced 4,500 units of product. A comparison of standard and actual costs…
Primara Corporation has a standard costing system in which it applies overhead to products on the basis of the standard direct labour- hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted standard direct labour-hours (denominator level of activity) Actual direct labour-hours Standard direct labour-hours allowed for the actual output $ 500,000 $ 508,000 50,000 54,000 52,000 Required: 1. Compute the fixed portion of the predetermined overhead rate for the year. Predetermined overhead rate per DLH
Overhead variance, missing information. Consider the following two situations—cases A and B— independently. Data refer to operations for April 2017. For each situation, assume standard costing. Also assume the use of a exible budget for control of variable and xed manufacturing overhead based on machine-hours.
In good accounting form, compute for the: 1. Spending variance2. Variable overhead efficiency variance3. Controllable varianceMarissa co., the consultant of marisol co. had summarized the following standard cost data extracted from the historical records and performance reports issued by the cost accounting department in the prior year to assist in her analysis and evaluation of the standard costing policy of the company: input required per unit standard cost per unit standard cost per unit Direct materials 6 kg per unit p90 per kg p540 Direct labor 5 hrs per unit p50 per hour p250 Other information follows: > Budgeted factory overhead for the year: Variable 480,000 Fixed 600,000 > The company's normal capacity per month is 400 units> Actual cost materials purchased for the year is p2,342,000> During the year, direct materials purchased is 26,880 kg while direct materials actually used is 24,760 kgs>Actual labor costs for the year 1,080,000 of which…
3 What is the variable manufacturing overhead efficiency variance? Michelle Inc. uses a level 4 variance analysis of its manufacturing overhead costs and has the following results for April. A. Budgeted direct labour-hours per unit is used to allocate variable manufacturing overhead. Fixed overhead is allocated on a per unit basis. B. Budgeted amounts for April are: Direct labour-hours Variable labour-hour overhead rate Fixed manufacturing overhead Budgeted output (denominator level output) C. Actual amounts for April are: Variable manufacturing overhead Fixed manufacturing overhead Direct labour-hours Actual output A) $181,200 favourable B) $80,000 favourable C) $101,200 unfavourable. D) $84,000 unfavourable OE) $101,200 favourable 0.30/unit $20.00/DLH $630,000 30,000 units $340,000 $590,000 16,000 hours 40,000 units
nformation of Hanes' direct labor costs for the month of May is as follows: roblem 4: Labor Variance as Actual direct labor rate Standard direct labor hours allowed Actual direct labor hours Direct labor rate variance - favorable P7.50 11,000 10,000 P5,500 Reguired: Compute the standard direct labor rate in effect for the month of May.