[The following informationapplies to the questions displayed below.] The Platter Valley factory of Bybee Industries manufacturesfield boots. The cost of each boot includes direct materials,direct labor, and manufacturing overhead. The firm traces alldirect costs to products, and it assigns overhead based on directlabor hours.
The company budgeted $10,120 variable overheadand 2,300 direct labor hours to manufacture 4,600 pairs of boots inMarch.
The factory used 4,300 direct labor hours inMarch to manufacture 4,400 pairs of boots and spent $17,400 onvariable overhead during the month.
For March thePlatter Valley factory of Bybee Industries budgeted $94,300 offixed overhead. Its practical capacity is 2,300 direct labor hoursper month (to manufacture 4,600 pairs of boots). The actual fixed overhead incurred for themonth was $97,900.
Required: 1. Compute the flexible-budget variance, the spending variance, andthe efficiency variance for variable overhead for March.
2. Provide appropriate journal entries to record the variableoverhead spending and efficiency variances. (If no entry isrequired for a transaction/event, select "No journal entryrequired" in the first account field.)
The Platter Valley factory of Bybee Industries uses athree-variance analysis of the total factory overhead variance.
Required: 3. Compute the total overhead spending variance, the efficiencyvariance, and the fixed overhead production volume variance.
4. Determine the spending variances (both variable and fixed), theefficiency variance, and the fixed overhead production volumevariance.
The Platter Valley factory of Bybee Industries uses atwo-variance analysis of the total factory overhead variance.
Required: 5. Compute the total flexible-budget variance and the fixedoverhead production volume variance for March.
6. Determine the flexible-budget variance and the fixed overheadproduction volume variance for March.
| [The following informationapplies to the questions displayed below.] |
The Platter Valley factory of Bybee Industries manufacturesfield boots. The cost of each boot includes direct materials,direct labor, and manufacturing overhead. The firm traces alldirect costs to products, and it assigns overhead based on directlabor hours. |
The company budgeted $10,120 variable overheadand 2,300 direct labor hours to manufacture 4,600 pairs of boots inMarch. |
The factory used 4,300 direct labor hours inMarch to manufacture 4,400 pairs of boots and spent $17,400 onvariable overhead during the month. |
| For March thePlatter Valley factory of Bybee Industries budgeted $94,300 offixed overhead. Its practical capacity is 2,300 direct labor hoursper month (to manufacture 4,600 pairs of boots). |
The actual fixed overhead incurred for themonth was $97,900. |
| Required: | |||||||||||||||||
| 1. | Compute the flexible-budget variance, the spending variance, andthe efficiency variance for variable overhead for March.
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