ACC 330 Lecture 15: 18

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orangegnat648

28 Jul 2019

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Traces direct costs to output by multiplying the standard prices or rate by the standard quantities of inputs allowed for actual outputs produced. Allocates overhead costs on the basis of the standard overhead-cost rates times the standard quantities of the allocation bases allowed for the actual outputs produced. Choose the period to be used for the budget. Annual for our example on page 290 of the text Select the cost-allocation bases to use in allocating variable overhead costs to output produced. Machine hours is our cost driver estimate is for . 40 hours per actual output unit or 144,000 jackets will take 57,600 hours (144,000 x . 40). Identify the variable overhead costs associated with each cost-allocation base. Compute the rate per unit of each cost-allocation base used to allocate variable overhead costs to output produced. Therefore the budgeted variable overhead cost rate per output unit is as follows: (. 40 machine hours per jacket x per hour) = per jacket.

Related Questions

Overhead Variances, Four-Variance Analysis

Oerstman, Inc., uses a standard costing system and develops itsoverhead rates from the current annual budget. The budget is basedon an expected annual output of 128,000 units requiring 512,000direct labor hours. (Practical capacity is 532,000 hours.) Annualbudgeted overhead costs total $844,800, of which $604,160 is fixedoverhead. A total of 119,500 units using 510,000 direct labor hourswere produced during the year. Actual variable overhead costs forthe year were $262,000, and actual fixed overhead costs were$555,550.

Required:

1. Compute the fixed overhead spending andvolume variances.

Fixed Overhead Spending Variance	$
Fixed Overhead Volume Variance	$

2. Compute the variable overhead spending andefficiency variances. Do not round intermediate calculations

Variable Overhead Spending Variance	$
Variable Overhead Efficiency Variance	$

aquamarineworm213

[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:

Compute the flexible-budget variance, the spending variance, andthe efficiency variance for variable overhead for March.

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:

Compute the total overhead spending variance, the efficiencyvariance, and the fixed overhead production volume variance.

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.

periwinkleant170

48 Overhead Variances

Study Appendix 13. Consider the following data for the RiveraCompany:

Factory Overhead

Fixed Variable

Actual incurred $14,200 $13,300

Budget for standard hours allowed

for output achieved 12,500 11,000

Applied 11,600 11,000

Budget for actual hours of input 12,500 11,400

From the above information, fill in the blanks below. Be sure tomark your variances F for favorable

and U for unfavorable.

a. Flexible-budget variance $______ Fixed $______

Variable $______

b. Production-volume variance $______ Fixed $______

Variable $______

c. Spending variance $______ Fixed $______

Variable $______

d. Efficiency variance $______ Fixed $______

Variable $______

beigeherring478

ACC 330 Lecture 15: 18

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