Managerial Accounting
7th Edition
ISBN: 9781260247886
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 8, Problem 18QS
A Total variable
Mosaic Company applies overhead using machine hours and reports the following information. Compute the total variable overhead cost variance and classify it as favorable or unfavorable.
| Actual machine hours used | 4,700 hours |
| Standard machine hours (for actual production) | 5,000 hours |
| Actual variable overhead rate per hour | $4.15 |
| Standard variable overhead rate per hour | $4.00 |
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A company reports the following information for its direct labor.
Actual hours of direct labor used
Actual rate of direct labor per hour
Standard rate of direct labor per hour
Standard hours of direct labor for units produced
!
AH = Actual Hours
SH= Standard Hours
AR= Actual Rate
SR Standard Rate
Compute the direct labor rate and efficiency variances and identify each as favorable or unfavorable.
Q
F1
Actual Cost
@
2
W
F2
#
3
E
80
F3
$
$
4
0
Ơ
F4
R
$
%
5
0
0
*
DII
8
F8
Standard Cost
(
9
F9
)
U I O
F1
Required information
(The following information applies to the questions displayed below.]
Mosaic Company applies overhead using machine hours and shows the following information.
Actual hours of machine use
Standard hours of machine use (for actual production)
Actual variable overhead rate per machine hour
Standard variable overhead rate per machine hour
5,500 hours
6,000 hours
$5.10
Compute the variable overhead variance and identify it as favorable or unfavorable.
Actual Cost
Standard Cost
Question Content Area The standard costs
and actual costs for factory overhead for
the manufacture of 2,900 units of actual
production are as follows: Standard Costs
Line Item Description Value Fixed overhead
(based on 10,000 hours) 3 hours per unit
at $0.70 per hour Variable overhead 3
hours per unit at $1.93 per hour Actual
Costs Total variable cost, $18,000 Total
fixed cost, $8,200 The fixed factory
overhead volume variance is a. $0 b. $728
unfavorable c. $910 unfavorable d. $728
favorable
Chapter 8 Solutions
Managerial Accounting
Ch. 8 - Prob. 1MCQCh. 8 - Prob. 2MCQCh. 8 - Prob. 3MCQCh. 8 - A Company’s standard for a unit of its single...Ch. 8 - Prob. 5MCQCh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQ
Ch. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 17DQCh. 8 - Prob. 18DQCh. 8 - Prob. 1QSCh. 8 - Prob. 2QSCh. 8 - Prob. 3QSCh. 8 - Prob. 4QSCh. 8 - Prob. 5QSCh. 8 - Prob. 6QSCh. 8 - Prob. 7QSCh. 8 - Prob. 8QSCh. 8 - Prob. 9QSCh. 8 - Materials cost variances P2 Juan Company’s output...Ch. 8 - Prob. 11QSCh. 8 - Prob. 12QSCh. 8 - Prob. 13QSCh. 8 - Prob. 14QSCh. 8 - Prob. 15QSCh. 8 - Prob. 16QSCh. 8 - A Preparing overhead entries P5 Refer to the...Ch. 8 - A Total variable overhead cost variance P4 Mosaic...Ch. 8 - A Overhead spending and efficiency variances P4...Ch. 8 - Computing sales price and volume variances A1...Ch. 8 - Sales variances A1 In a recent year, BMW sold...Ch. 8 - Prob. 22QSCh. 8 - Prob. 23QSCh. 8 - Prob. 24QSCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Exercise 21-8 Standard unit cost; total variance...Ch. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Exercise 21-14A Materials variances recorded and...Ch. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Exercise 21-19 Computation of total overhead rate...Ch. 8 - Exercise 21-20 Computation of volume and...Ch. 8 - Exercise 21-21 Overhead controllable and volume...Ch. 8 - Prob. 22ECh. 8 - Exercise 21-23 Computing and interpreting sales...Ch. 8 - Prob. 1PSACh. 8 - Prob. 2PSACh. 8 - Prob. 3PSACh. 8 - Prob. 4PSACh. 8 - Prob. 5PSACh. 8 - Problem 21-6AA Materials, labor, and overhead...Ch. 8 - Prob. 1PSBCh. 8 - Prob. 2PSBCh. 8 - Prob. 3PSBCh. 8 - Prob. 4PSBCh. 8 - Prob. 5PSBCh. 8 - Problem 21-6BA Materials, labor, and overhead...Ch. 8 - Prob. 8SPCh. 8 - Flexible budgets and standard costs emphasize the...Ch. 8 - Prob. 2AACh. 8 - Prob. 3AACh. 8 - Prob. 1BTNCh. 8 - The reason we use the words favorable when...Ch. 8 - Prob. 3BTNCh. 8 - Prob. 4BTNCh. 8 - Prob. 5BTNCh. 8 - Prob. 6BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Calculating amount of factory overhead applied to work in process The overhead application rate for a company is 2.50 per unit, made up of 1.00 for fixed overhead and 1.50 for variable overhead. Normal capacity is 10,000 units. In one month, there was an unfavorable flexible budget variance of 200. Actual overhead for the month was 27,000. What was the amount of the budgeted overhead for the actual level of production?arrow_forwardQuestion Content Area Standard Actual Variable overhead rate $3.35 Fixed overhead rate $1.80 Hours 18,900 17,955* Fixed overhead $46,000 Actual variable overhead $67,430 Total factory overhead $101,450 *Actual hours are equal to standard hours for units produced. The variable factory overhead controllable variance is a.$7,280.75 favorable b.$8,981.75 favorable c.$8,981.75 unfavorable d.$7,280.75 unfavorablearrow_forwardD13 X✓ fx per hour A 1 Problem 3: Overhead Costs Variances 2 B لا Alignment Ty Number D LZ 3 Jailene Inc allocates overhead costs using the direct labor hour as the allocation base. It has provided the following manufacturing overhead data: 4 5 Data 6 Number of production units 7 Direct labor hour (DLH)* per unit 8 Total direct labor hours 9 VMOH 10 FMOH 11 Total MOH 12 Standard VMOH rate per hour 13 Standard FMOH rate per hour 14 MOH rate per hour 15 16 Actual Budgeted or Standard 53,000 50000 units 0.55 29,150 $145,000 0.72 DLH per unit 36,000 DLH $144,000 $65,000 210,000 $72,000 216,000 $4.00 per hour $2.00 per hour $6.00 per hour Formulae: Styles E Cells E F H I Editing Sensitivity Add-ins L M N 0 17 Required: 18 A. Calculate Variable MOH flexible budget cost variance. 19 B. Calculate Fixed MOH volume variance. 20 C. Calculate the total MOH variance. 21 22 Solution: 23 A. Variable MOH flexible budget cost variance = Actual Variable MOH costs - Budgeted Variable MOH costs 24 Actual…arrow_forward
- Q.No.2 The standard and actual cost data of M/s. ABC Company are as follows: Standard Raw Material (DM) is 5000 units @ Rs. 10 while Actual 4900 units @ Rs. 8 Standard Direct Labor (DL) is 10000 hours @ Rs. 4 while Actual 12000 Hours @ Rs. 5 Standard Factory Overhead (FOH) is 50% of Direct Labor while Actual FOH Rs. 15000 Required: A) Calculate; Material Price Variance and Material Quantity Variance Labor rate variance and Labor time variance Overhead Variance B) Give journal entries to record the above information and close the variance accounts.arrow_forwardThe following variable production costs apply to goods made by Walton Manufacturing Corporation: Cost per unit $10.00 Item Materials Labor 8.50 Variable overhead 1.20 Total $19.70 Required Determine the total variable production cost, assuming that Walton makes 9,000, 19,000, or 29,000 units. Units Produced 9,000 19,000 29,000 Total variable costarrow_forwardAverage Cost per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense $6.55 $3.45 $1.45 $3.80 $1.40 $0.95 $1.35 $0.85 Sales commissions Variable administrative expense If 7,300 units are sold, the variable cost per unit sold is closest to:arrow_forward
- Alfredo Co. has collected the following per unit data: Direct labor $8 Variable selling and admin. Direct materials 5 Fixed overhead Variable overhead 2 Fixed selling and admin. The markup percentage is 120%. What is the price under the variable-cost approach? $24.00 O $20.40 O $21.60 $33.60 $3 1 7arrow_forwardThe following variable production costs apply to goods made by Zachary Manufacturing Corporation: Item Cost per unit $ 6.00 Materials Labor Variable overhead 6.00 1. 20 Total $13. 20 Skipped Required Determine the total variable production cost, assuming that Zachary makes 14,000, 24,000, or 34,000 units. Units Produced 14,000 24,000 34,000 Total variable costarrow_forward2Given the following data, calculate the total product cost per unit under variable costing. Direct labor S3.50 per unit Direct materials S1.25 per unit Overhead Total variable overhead $41,400 Total fixed overhead $150,000 Expected units to be produced 18,000 units a.$4.75 per unit b.S7.05 per unit C.$15.38 per unit d.$13.08 per unit e.$16 per unitarrow_forward
- ing information: Cost per Cost per Unit Period Direct materials $ 4.80 $ 3.80 $ 1.50 Direct labor Variable manufacturing overhead Fixed manufacturing overhead $ 10,800 Sales commissions $ 1.80 $ 0.60 Variable administrative expense Fixed selling and administrative expense $ 6,800 If 4,000 units are sold, the total variable cost is closest to:arrow_forwardVariance Problem Standard Quantity Standard Cost Standard price $1.75 per hr $11.50 per hr $5.00 per hr per unit $7.00 $13.80 $6.00 per unit Direct Materials Direct Labor Variable Overhead 4 1.2 1.2 Manufacturing overhead is applied using direct labor hours as the base. During the month of July, XYZ company had the following information available about production: a. 9,000 units were produced b. 37,000 lbs of raw materials were purchased at a cost of $62,900 c. There was no beginning inventory and no ending iInventory of raw materials d. 10,500 hours of direct labor were used during the month at a cost of $119,175 e. Variable overhead cost in July totaled $57,750 Compute the following and verify the total variance for each component of product cost: 1. Material price variance, Material quantity variance, and Total material variance 2. Labor rate variance, Labor efficiency variance, and Total labor variance 3. Variable Overhead spending variance, Variable Overhead efficiency variance,…arrow_forward-S average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $7.10 $4.10 $ 1.60 $ 5.10 $ 3.60 $ 2.60 1. Total amount of product cost 2. Total amount of period cost incurred 3. Total amount of product cost 4. Total amount of period cost $ 1.10 $ 0.60 Exercise 1-8 (Algo) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-- Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 11,000 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 11,000 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 12,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units? (For all…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY