Question

Fixed Overhead Variances Assume that ExxonMobil uses a standard cost system for each of its refineries....

Fixed Overhead Variances
Assume that ExxonMobil uses a standard cost system for each of its refineries. For the Houston refinery, the monthly fixed overhead budget is $8,300,000 for a planned outputs of 5,000,000 barrels. For September, the actual fixed cost was $8,650,000 for 5,100,000 barrels.


a. Determine the fixed overhead budget variance.
$Answer

U or F

b. If fixed overhead is applied on a per-barrel basis, determine the volume variance.
$Answer

U or F

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Fixed Overhead Variances Petra Company uses standard costs for cost control and internal reporting. Fixed costs...
Fixed Overhead Variances Petra Company uses standard costs for cost control and internal reporting. Fixed costs are budgeted at $40,000 per month at a normal operating level of 10,000 units of production output. During October, actual fixed costs were $45,000 and actual production output was 12,000 units a. Determine the fixed overhead budget variance. $AnswerAnswerUF b. Assume that the company applied fixed overhead to production on a per-unit basis. Determine the fixed overhead volume variance. $AnswerAnswerUF
Exercise 10A-1 Fixed Overhead Variances [LO10-4] Primara Corporation has a standard cost system in which it...
Exercise 10A-1 Fixed Overhead Variances [LO10-4] Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year $ 530,400 Actual fixed overhead cost for the year $ 521,000 Budgeted direct labor-hours (denominator level of activity) 68,000 Actual direct labor-hours 69,000 Standard direct labor-hours allowed for the actual...
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates...
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 125,000 units requiring 500,000 direct labor hours. (Practical capacity is 520,000 hours.) Annual budgeted overhead costs total $830,000, of which $585,000 is fixed overhead. A total of 119,100 units using 498,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $261,100, and...
Overhead Variances, Two- And Three-Variance Analyses Oerstman, Inc., uses a standard costing system and develops its...
Overhead Variances, Two- And Three-Variance Analyses Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 123,000 units requiring 492,000 direct labor hours. (Practical capacity is 512,000 hours.) Annual budgeted overhead costs total $772,440, of which $551,040 is fixed overhead. A total of 119,300 units using 490,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were...
Li Pong company uses a standard costing system. Last year they incurred $100,000 of Variable Overhead...
Li Pong company uses a standard costing system. Last year they incurred $100,000 of Variable Overhead and $294,000 of Fixed Overhead and had the following variances before closing entries. FOH Budget Variance - $2,000 F FOH Volume Variance - $7,000 U VOH Spending Variance - $9,000 F VOH Efficiency Variance - $1,000 U How much overhead was applied to inventory over the course of the year? (Answer in dollars)
Variable Overhead Variances Assume that the best cost driver that Sony has for variable factory overhead...
Variable Overhead Variances Assume that the best cost driver that Sony has for variable factory overhead in the assembly department is machine hours. During April, the company budgeted 680,000 machine hours and $7,000,000 for its Texas plant's assembly department. The actual variable overhead incurred was $7,300,000, which was related to 700,000 machine hours. Do not round until your final answers. Round your answers to the nearest dollar. (a) Determine the variable overhead spending variance. $Answer Answer f or u (b)...
Problem 10A-9 Applying Overhead; Overhead Variances [LO10-3, LO10-4] Chilczuk, S.A., of Gdansk, Poland, is a major...
Problem 10A-9 Applying Overhead; Overhead Variances [LO10-3, LO10-4] Chilczuk, S.A., of Gdansk, Poland, is a major producer of classic Polish sausage. The company uses a standard cost system to help control costs. Manufacturing overhead is applied to production on the basis of standard direct labor-hours. According to the company’s flexible budget, the following manufacturing overhead costs should be incurred at an activity level of 14,000 labor-hours (the denominator activity level):   Variable manufacturing overhead cost $ 24,500   Fixed manufacturing overhead cost...
Kenney Co. uses a standard cost system. Standard direct labor hours are the basis for applying...
Kenney Co. uses a standard cost system. Standard direct labor hours are the basis for applying overhead to production. The fixed overhead budget for the year is $450,000 and the expected activity level was 30,000 hours. Each unit of product is expected to use 2 hours of direct labor. Actual production was 14,500 units and the actual fixed overhead cost was $420,000. Required: Be sure to label each variance as F – favorable or U – unfavorable 1. What is...
Patel and Sons, Inc., uses a standard cost system to apply overhead costs to units produced....
Patel and Sons, Inc., uses a standard cost system to apply overhead costs to units produced. Practical capacity for the plant is defined as 55,800 machine hours per year, which represents 27,900 units of output. Annual budgeted fixed overhead costs are $279,000 and the budgeted variable overhead cost rate is $3.90 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 21,700 units, which...
Maxwell Company uses a standard cost accounting system and applies production overhead to products on the...
Maxwell Company uses a standard cost accounting system and applies production overhead to products on the basis of machine hours. The following information is available for the most recent month: Machine-hour standard: Two machine hours per unit Standard fixed overhead rate: $20 per machine hour Actual production: 15,000 units Under-applied fixed overhead: $50,000 Fixed overhead budget variance: $30,000 favorable The budgeted fixed overhead and the fixed overhead volume variance, respectively, are $620,000 and $20,000 $680,000 and -$80,000 $650,000 and $50,000...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT