Question

**PLEASE SHOW ALL WORK / EQUATIONS NECESSARY to arrive at solutions**

Crystal Glassware Company has the following standards and flexible-budget data.

  

Standard variable-overhead rate	$	19	per direct-labor hour
Standard quantity of direct labor		2.0	hours per unit of output
Budgeted fixed overhead	$	400,000
Budgeted output		30,000	units

  

Actual results for April are as follows:

  

Actual output		19,000	units
Actual variable overhead	$	1,025,150
Actual fixed overhead	$	341,000
Actual direct labor		50,500	hours

  Required:

Use the following diagrams below (similar to Exhibit 11-6 and Exhibit 11-8 to compute (1) the variable-overhead spending and efficiency variances, and (2) the fixed-overhead budget and volume variances.

Compute the variable-overhead spending and efficiency variances. (Round your "per hour" rate answers to 2 decimal places. Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

Variable-Overhead Spending And Efficiency Variances

(Hours = Direct-Labor Hours)

(1)

(2)

(3)

(4)

Actual Variable Overhead

Projected Variable Overhead

Flexible Budget: Variable Overhead

Variable Overhead Applied To Work-In-Process

Actual Hours (AQ)

×

Actual Rate (AVR)

Actual Hours (AQ)

×

Standard Rate (SVR)

Standard Allowed Hours (SQ)

×

Standard Rate (SVR)

Standard Allowed Hours (SQ)

×

Standard Rate (SVR)

×

×

×

×

hours

per hour

hours

per hour

hours

per hour

hours

per hour

Variable-overhead spending variance

Variable-overhead efficiency variance

Compute the fixed-overhead budget and volume variances. (Round your "per hour" rate answers to 2 decimal places. Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

Fixed-Overhead Budget And Volume Variances

(Hours = Direct-Labor Hours)

(1)

(2)

(3)

Actual Fixed Overhead

Budgeted Fixed Overhead

Fixed Overhead Applied To Work In Process

Standard Allowed Hours

×

Standard Fixed-Overhead Rate

×

hours

per hour

Fixed-overhead budget variance

Fixed-overhead volume variance

Answer 1