Question

**PLEASE SHOW ALL WORK / EQUATIONS NECESSARY to arrive at solutions** Crystal Glassware Company has the...

**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
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