Question

Comfort Company manufactures cardiac pillows. The 20X5 operating budget is based on the production of 1,000...

Comfort Company manufactures cardiac pillows. The 20X5 operating budget is based on the production of 1,000 pillows. At that volume, budgeted variable expenses total $65,000. After reviewing at the end of the period, actual production totaled 1,200 pillows and total variable expenses were $69,000. Compute the variable expense cost variance. Is the variance favorable or unfavorable?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The Variable overhead cost variance is Favorable in nature.

Working Note:

Standard Variable Cost Per Pillows = Standard Variable Cost/Standard Unit of Pillows

Standard Variable Cost Per Pillows = $65,000/1000

Standard Variable Cost Per Pillows = $65

Thanks!

Please drop an upvote if you find this helpful.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Excel Skin Inc. manufactures specialized bandaging used to treat severe skin burns. Budgeted sales for October...
Excel Skin Inc. manufactures specialized bandaging used to treat severe skin burns. Budgeted sales for October for a certain bandaging kit are $100,000 (1,000 kits). Upon review at the end of the quarter, actual October sales totaled $117,000 (1,200 kits). Total October expenses were budgeted to be $65,000 but were actually $70,000. Compute the revenue rate variance for October. Is the variance favorable or unfavorable?
Smithson Company manufactures shirts. During June, Smithson made 1,100 shirts but had budgeted production at 1,250...
Smithson Company manufactures shirts. During June, Smithson made 1,100 shirts but had budgeted production at 1,250 shirts. Smithson gathered the following additional data: Variable overhead cost standard: $0.20 per DLHr Direct labor efficiency standard: 7.50 DLHr per shirt Actual amount of direct labor hours: 8,340 DLHr Actual cost of variable overhead: $4,170 Fixed overhead cost standard: $0.15 per DLHr Budgeted fixed overhead: $1,406 Actual cost of fixed overhead: $1,531 13.) Calculate the variable overhead cost variance. Select the formula from...
RTI company’s master budget calls for production and sale of 18,000 units for $81,000; variable costs...
RTI company’s master budget calls for production and sale of 18,000 units for $81,000; variable costs of $30,600; and fixed costs of $20,000. During the most recent period, the company incurred $32,000 of variable costs and $28,000 of fixed costs to produce and sell 20,000 units for $85,000. What is the sales volume variance for operating income? Group of answer choices $3,400 favorable $64,000 unfavorable $5,600 favorable $9,000 unfavorable What is the flexible budget variance for operating income? Group of...
Blumen Textiles Corporation began April with a budget for 47,000 hours of production in the Weaving...
Blumen Textiles Corporation began April with a budget for 47,000 hours of production in the Weaving Department. The department has a full capacity of 63,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows: Variable overhead $122,200 Fixed overhead 88,200 Total $210,400 The actual factory overhead was $212,900 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production...
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct...
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct materials: 5 pounds at $9 per pound $ 45 Direct labor: 3 hours at $14 per hour 42 Variable overhead: 3 hours at $8 per hour 24 Total standard cost per unit $ 111 The planning budget for March was based on producing and selling 28,000 units. However, during March the company...
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of...
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of 4,000 computers: Actual: Variable factory overhead $65,000 Fixed factory overhead 25,500 Standard: 4,000 hrs. at $21 84,000 If productive capacity of 100% was 6,000 hours and the total factory overhead cost budgeted at the level of 4,000 standard hours was $92,500, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate...
The following data is available regarding X Company' utility cost in 2017: Estimated production 3,300 units...
The following data is available regarding X Company' utility cost in 2017: Estimated production 3,300 units Budgeted fixed costs $12,000 Budgeted total variable costs $22,968 Actual production 2,900 units Actual total costs $23,180 What was the flexible budget variance for total utility costs in 2017 (assume that a positive number means a favorable variance and a negative number means an unfavorable variance)?
The following data is available regarding X Company' utility cost in 2017: Estimated production 3,000 units...
The following data is available regarding X Company' utility cost in 2017: Estimated production 3,000 units Budgeted fixed costs $19,000 Budgeted total variable costs $20,340 Actual production 2,900 units Actual total costs $23,363 What was the flexible budget variance for total utility costs in 2017 (assume that a positive number means a favorable variance and a negative number means an unfavorable variance)?
Bonehead Co. has the following factory overhead costs for the most recent period: Standard overhead cost...
Bonehead Co. has the following factory overhead costs for the most recent period: Standard overhead cost applied to this period’s production $ 72,000 Flexible budget for overhead based on output (i.e., units produced) 65,000 Total budgeted overhead in the master (static) budget 86,000 Actual total overhead cost incurred during the period 76,000 Under a two-variance analysis (breakdown) of the total overhead variance for the period, the total overhead flexible-budget (FB) variance, to the nearest whole dollar, is: Multiple Choice $4,000...
Oriole Manufacturing produces gourmet blackberry preserves. Oriole based its current year budget on a production level...
Oriole Manufacturing produces gourmet blackberry preserves. Oriole based its current year budget on a production level of 540500 jars of preserves using ½ hour direct labor time for each jar (which includes hand-sorting and trimming the berries). Total budgeted variable overhead for the year was $1243000. During the year, Oriole used 280500 direct labor hours to produce 550000 jars of blackberry preserves. Actual variable overhead for the year was $1247500. What is Oriole’s flexible budget variable overhead variance? $26500 unfavorable...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT