Question

The following information relating to a company's overhead costs is available. Budgeted fixed overhead rate per...

The following information relating to a company's overhead costs is available.

Budgeted fixed overhead rate per machine hour $ 0.50
Actual variable overhead $ 73,000
Budgeted variable overhead rate per machine hour $ 2.50
Actual fixed overhead $ 17,000
Budgeted hours allowed for actual output achieved 32,000


Based on this information, the total overhead variance is:

Multiple Choice

  • $6,000 favorable.

  • $1,000 favorable.

  • $7,000 favorable.

  • $6,000 unfavorable.

  • $1,000 unfavorable.

Homework Answers

Answer #1

Ans:

Option $6,000 favourable. Is Correct Answer

Explanation:

Total Overhead Variance=Total variable overhead Variace + Total Fixed overhead variance

= 7000 favourable +1000 unfavorable=$6000 favorable

The Total Variable Overhead Variance=Budgeted variable overhead-Actual total variable overhead

=Budgeted machine hours allowed for actual output*Budgeted variable overhead rate per machine hour - Actual total variable overhead

=32,000*$2.50-$73,000=$7,000 favourable.

The Total Fixed Overhead Variance=Budgeted Fixed overhead-Actual Fixed overhead

=Budgeted machine hours allowed for actual output*Budgeted Fixed overhead rate per machine hour - Actual Fixed overhead

=32000*.50-17000=16000-17000=1000 unfavorable.,,

Please comment in case of Issue.,,,

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
The following information for the past year is available from Thinnews Co., a company that uses...
The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply standard factory overhead cost to outputs: Actual total factory overhead cost incurred $ 30,000 Actual fixed overhead cost incurred $ 7,000 Budgeted fixed overhead cost $ 12,000 Actual machine hours 8,000 Standard machine hours allowed for the units manufactured 4,600 Denominator volume—machine hours 7,500 Standard variable overhead rate per machine hour $ 3 The variable overhead spending variance, to the...
The following information applies to questions 1-3: Actual fixed overhead cost: $35,200 Budgeted fixed overhead cost:...
The following information applies to questions 1-3: Actual fixed overhead cost: $35,200 Budgeted fixed overhead cost: $35,000 Budgeted fixed overhead rate, based on 10,000 machine hours: $3.50 Standard machine hours per unit: 1/2 hour Actual units produced: 17,600 1.          Compute the fixed overhead budget variance: a. $4,400 favorable              c. $4,200 favorable b. $200 unfavorable              d. $200 favorable 2.          Compute the fixed overhead volume variance: a. $200 unfavorable             c. $200 favorable b. $4,400 favorable               d. $4,200 unfavorable...
Assume that $102,000 is budgeted for fixed overhead. $95,000 was actually spent on fixed overhead. Fixed...
Assume that $102,000 is budgeted for fixed overhead. $95,000 was actually spent on fixed overhead. Fixed overhead is applied to production at $10 per labor hour, and the achieved output was 5,000 units. The standard labor hours are 2 hours per unit. The total fixed overhead variance is $2,000 favorable. All of these choices are correct. The fixed overhead spending variance is $7,000 favorable. The fixed overhead volume variance is $5,000 unfavorable.
The following information for the past year is available from Thinnews Co., a company that uses...
The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply standard factory overhead cost to outputs: Actual total factory overhead cost incurred $ 24,000 Actual fixed overhead cost incurred $ 10,000 Budgeted fixed overhead cost $ 11,000 Actual machine hours 5,000 Standard machine hours allowed for the units manufactured 4,800 Denominator volume—machine hours 5,500 Standard variable overhead rate per machine hour $ 3.00 Under a three-variance breakdown (decomposition) of the...
The following information for the past year is available from Thinnews Co., a company that uses...
The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply standard factory overhead cost to outputs: Actual total factory overhead cost incurred$35,000 Actual fixed overhead cost incurred$12,000 Budgeted fixed overhead cost$10,000 Actual machine hours 9,000 Standard machine hours allowed for the units manufactured 5,400 Denominator volume—machine hours 6,100 Standard variable overhead rate per machine hour$3 Under a three-variance breakdown (decomposition) of the total factory overhead variance, the total factory overhead...
Answer questions 18-21 using the information below: Thinnews Co., uses machine hours to allocate manufacturing overhead...
Answer questions 18-21 using the information below: Thinnews Co., uses machine hours to allocate manufacturing overhead cost to outputs: Actual total overhead cost incurred $ 24,000 Actual fixed overhead cost incurred $ 10,000 Budgeted fixed overhead cost $ 11,000 Actual machine hours 5,000 Standard machine hours allowed for the units manufactured 4,800 Denominator level — machine hours 5,500 Standard variable overhead rate per machine hour $ 3.00 What is variable overhead spending variance? Group of answer choices $960 favorable $1,000...
Selected information relating to Yost Company's operations for the most recent year is given below: Activity:...
Selected information relating to Yost Company's operations for the most recent year is given below: Activity: Denominator activity (machine-hours) 21,300 Standard hours allowed per unit 2.3 Actual number of units produced 8,000 Costs: Actual fixed overhead costs incurred $ 69,200 Fixed overhead budget variance $ 1,090 F The company applies overhead cost to products on the basis of standard machine-hours. Required: 1. What were the standard machine-hours allowed for the actual number of units produced? 2. What was the total...
Direct Materials, Direct Labor, and Reports budgeted and actual costs for variable and fixed factory overhead...
Direct Materials, Direct Labor, and Reports budgeted and actual costs for variable and fixed factory overhead along with the related controllable and volume variances.Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. A detailed estimate of what a product should cost.Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 6,800 units of product were as follows: Standard Costs Actual Costs Direct materials 8,800 lb. at $4.90 8,700...
The following information is available for Baxter Manufacturing for April: Actual machine hours 980 Standard machine...
The following information is available for Baxter Manufacturing for April: Actual machine hours 980 Standard machine hours allowed 1,040 Denominator activity (machine hours) 1,700 Actual fixed overhead costs $ 6,600 Budgeted fixed overhead costs $ 6,800 Predetermined overhead rate ($1 variable + $4 fixed) $ 5 Is the fixed overhead price (spending) variance for April favorable or unfavorable? show work
Lihue, Inc., applies fixed overhead at the rate of $3.20 per unit. Budgeted fixed overhead was...
Lihue, Inc., applies fixed overhead at the rate of $3.20 per unit. Budgeted fixed overhead was $1,129,920. This month 343,100 units were produced, and actual overhead was $1,110,000. Required: a. What are the fixed overhead price and production volume variances for Lihue? (Indicate the effect of each variance by "F" for favorable, or "U" for unfavorable.) b. What was budgeted production for the month? (Do not round intermediate calculations.)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT
Active Questions
  • Compare the American Counselors Association (ACA) code of ethics regarding continuing education to the National Association...
    asked 6 minutes ago
  • Python Jupyter Notebook An acronym is a word formed by taking the first letters of the...
    asked 38 minutes ago
  • Question posed after chapter 4.5 of differential equations class, book by p. blanchard, 4th edition :...
    asked 41 minutes ago
  • Below are some crude cause-specific mortality rates from the two studies. Crude mortality rate per 100,000...
    asked 1 hour ago
  • A computer chess game and a human chess champion are evenly matched. They play twelve games....
    asked 1 hour ago
  • Identify and describe instances of the following: Cognitive Dissonance Denial Overgeneralization Conformity Also, how about the...
    asked 1 hour ago
  • Your task is to identify 2 advertisements. One advertisement encourages a consumer to use a non-compensatory...
    asked 1 hour ago
  • For the following exercises, consider this scenario: For each year t, the population of a forest...
    asked 1 hour ago
  • Question 5 A 15-minute-rainfall of 20-year Average Recurrence Interval (ARI) was fallen over a 5ha catchment...
    asked 1 hour ago
  • Explain what is Band structure and and why energy bands are formed in a solid state?...
    asked 1 hour ago
  • Test the hypothesis using the p-value approach Upper H 0H0​: pequals=0.3 versus Upper H 1H1​: pgreater...
    asked 1 hour ago
  • As head of state agency, you are concerned that your employees have fallen into the old...
    asked 2 hours ago