Managerial 13e Ch 08 HW

Managerial 13e Ch 08 HW - Cost Accounting 13 edition...

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Cost Accounting 13 edition CHAPTER 8 21, 22, 25, 29, 33, and 40 Not on My Accounting Lab 8-21 4-variance analysis, fill in the blanks. Variable Fixed 1. Spending variance 2. Efficiency variance 3. Production-volume variance 4. Flexible-budget variance 5. Underallocated (overallocated) MOH $4,200 U 4,500 U NEVER 8,700 U 8,700 U $3,000 U NEVER 600 U 3,000 U 3,600 U These relationships could be presented in the same way as in Exhibit 8-4. Actual Costs Incurred (1) Actual Input Qty. × Budgeted Rate (2) Flexible Budget: Budgeted Input Qty. Allowed for Actual Output × Budgeted Rate (3) Allocated: Budgeted Input Qty. Allowed for Actual Output × Budgeted Rate (4) Variable MOH $35,700 $31,500 $27,000 $27,000 Actual Costs Incurred (1) Same Budgeted Lump Sum (as in Static Budget) Regardless of Output Level (2) Flexible Budget: Same Budgeted Lump Sum (as in Static Budget) Regardless of Output Level (3) Allocated: Budgeted Input Qty. Allowed for Actual Output × Budgeted Rate (4) Fixed MOH $18,000 $15,000 $15,000 $14,400 $4,200 U Spending variance $4,500 U Efficiency variance Never a variance $3,000 U Spending variance Never a variance $600 U Production-volume variance $8,700 U Flexible-budget variance Never a variance $8,700 U Underallocated variable overhead (Total variable overhead variance) $3,000 U Flexible-budget variance $600 U Production-volume variance
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An overview of the 4 overhead variances is: 4-Variance Analysis Spending Variance Efficiency Variance Production-Volume Variance Variable Overhead $4,200 U $4,500 U Never a variance Fixed Overhead $3,000 U Never a variance $600 U 8-22 Straightforward 4-variance overhead analysis. 1. The budget for fixed manufacturing overhead is 4,000 units × 6 machine-hours × $15 machine- hours/unit = $360,000. An overview of the 4-variance analysis is: 4-Variance Analysis Spending Variance Efficiency Variance Production- Volume Variance Variable Manufacturing Overhead $17,800 U $16,000 U Never a Variance Fixed Manufacturing Overhead $13,000 U Never a Variance $36,000 F Solution Exhibit 8-22 has details of these variances. A detailed comparison of actual and flexible budgeted amounts is: Actual Flexible Budget Output units (auto parts) 4,400 4,400 Allocation base (machine-hours) 28,400 26,400 a Allocation base per output unit 6.45 b 6.00 Variable MOH $245,000 $211,200 c Variable MOH per hour $8.63 d $8.00 Fixed MOH $373,000 $360,000 e Fixed MOH per hour $13.13 f $3,600 U Underallocated fixed overhead (Total fixed overhead variance)
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a 4,400 units × 6.00 machine-hours/unit = 26,400 machine-hours b 28,400 ÷ 4,400 = 6.45 machine-hours per unit c 4,400 units × 6.00 machine-hours per unit × $8.00 per machine-hour = $211,200 d $245,000 ÷ 28,400 = $8.63 e 4,000 units × 6.00 machine-hours per unit × $15 per machine-hour = $360,000 f $373,000 ÷ 28,400 = $13.13 2. Variable Manufacturing Overhead Control 245,000 Accounts Payable Control and other accounts 245,000 Work-in-Process Control
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This document was uploaded on 11/03/2011 for the course ACCOUNTING 33:010:275 at Rutgers.

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Managerial 13e Ch 08 HW - Cost Accounting 13 edition...

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