Sunland Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The following data are taken from the budget prepared at the beginning of the year by Sunland's controller. The company applies overhead on the basis of machine hours. Annual Budget May Budget Variable manufacturing overhead $1,540,000 $140,000 Fixed manufacturing overhead $1,200,000 $100,000 Direct labor hours 48,000 4,000 Machine hours 220,000 20,000 During the month of May, Sunland used 4,200 direct labor hours and 21,600 machine hours. The flexible budget for the month allowed 4,000 direct labor hours and 21,000 machine hours. Actual fixed manufacturing overhead incurred was $101,200; variable manufacturing overhead incurred was $150,200. (a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,725. If variance is zero, select "Not Applicable" and enter 0 for the amounts.) 2$ Favorable Variable overhead spending variance 24 Unfavorable VariablO ovorboa
Sunland Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The following data are taken from the budget prepared at the beginning of the year by Sunland's controller. The company applies overhead on the basis of machine hours. Annual Budget May Budget Variable manufacturing overhead $1,540,000 $140,000 Fixed manufacturing overhead $1,200,000 $100,000 Direct labor hours 48,000 4,000 Machine hours 220,000 20,000 During the month of May, Sunland used 4,200 direct labor hours and 21,600 machine hours. The flexible budget for the month allowed 4,000 direct labor hours and 21,000 machine hours. Actual fixed manufacturing overhead incurred was $101,200; variable manufacturing overhead incurred was $150,200. (a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,725. If variance is zero, select "Not Applicable" and enter 0 for the amounts.) 2$ Favorable Variable overhead spending variance 24 Unfavorable VariablO ovorboa
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 2E: Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted...
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Oriole Company manufactures deep-sea fishing rods, which it distributes internationally through a chain of wholesalers. The following data are taken from the budget prepared at the beginning of the year by Oriole’s controller. The company applies overhead on the basis of machine hours.
During the month of May, Oriole used 4,220 direct labor hours and 21,820 machine hours. The flexible budget for the month allowed 4,300 direct labor hours and 21,330 machine hours. Actual fixed manufacturing overhead incurred was $109,200; variable manufacturing overhead incurred was $259,040.
(a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,725. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)
Annual Budget | May Budget | ||||
---|---|---|---|---|---|
Variable manufacturing overhead
|
$2,665,200 | $240,000 | |||
Fixed manufacturing overhead
|
$1,204,200 | $100,350 | |||
Direct labor hours
|
48,600 | 4,050 | |||
Machine hours
|
222,100 | 20,000 |
During the month of May, Oriole used 4,220 direct labor hours and 21,820 machine hours. The flexible budget for the month allowed 4,300 direct labor hours and 21,330 machine hours. Actual fixed manufacturing overhead incurred was $109,200; variable manufacturing overhead incurred was $259,040.
(a) Calculate the variable overhead spending and efficiency variances for May. (Round per unit value to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,725. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)
Variable overhead spending variance
|
$enter the variable overhead spending variance in dollars | select an option |
---|
Variable overhead efficiency variance
|
$enter the variable overhead efficiency variance in dollars | select an option |
---|
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