AF 3112 Week 9 Assignment.pdf - AF 3112 MANAGEMENT...

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AF 3112 MANAGEMENT ACCOUNTING 2 Week 9 exercises 8-2 How does the planning of fixed overhead costs differ from the planning of variable overhead costs? 8-3 How does standard costing differ from actual costing? 8-5 What are the factors that affect the spending variance for variable manufacturing overhead? 8-6 Assume variable manufacturing overhead is allocated using machine-hours. Give three possible reasons for a favorable variable overhead efficiency variance. 8-9 Why is the flexible-budget variance the same amount as the spending variance for fixed manufacturing overhead? 8-19 Culpepper Corporation had the following inventories at the beginning and end of the month of January: January 1 January 31 Finished goods $125,000 $117,000 Work-in-process 235,000 251,000 Direct materials 134,000 124,000 The following additional manufacturing data was available for the month of January. Direct materials purchased $189,000 Transportation in 3,000 Direct labor 400,000 Actual factory overhead 175,000 Culpepper Corporation applies factory overhead at a rate of 40% of direct labor cost, and any overapplied or underapplied factory overhead is deferred until the end of the year. Culpepper’s balance in its factory overhead control account at the end of January was: 1. $15,000 overapplied. 2. $15,000 underapplied. 3. $5,000 underapplied. 4. $5,000 overapplied.
8-21 Variable manufacturing overhead, variance analysis. Omega Arts is a manufacturer of designer vases. The cost of each vase is the sum of three variable costs (direct material costs, direct manufacturing labor costs, and manufacturing overhead costs) and one fixed-cost category (manufacturing overhead costs). Variable manufacturing overhead cost is allocated to each vase on the basis of budgeted direct manufacturing labor-hours per vase. For June 2017, each vase is budgeted to take 4 labor-hours. Budgeted variable manufacturing overhead cost

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