# The following information is for pappillon

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3. The following information is for Pappillon Corporation’s variable manufacturingoverhead costs last month: favorable flexible-budget variance of \$3,000, unfavorable efficiencyvariance of \$2,500. The spending variance is:a. \$500 favorable.b. \$5,500 unfavorable.c. \$5,500 favorable.d. none of the above.VOH flexible-budget variance = VOH spending variance + VOH efficiency variance\$3,000 F = VOH spending variance + \$2,500 UVOH spending variance = \$3,000 F – (\$2,500 U)= \$3,000 F + \$2,5000 F= \$5,500 FVOH spending variance\$5,500VOH efficiency variance- \$2,500VOH flexible-budget variance \$3,000 F__D__4. (CPA) Fawcett Company prepared the following information on its manufacturing
operations for 2010: Static Budget Maximum Capacity Percent of capacity 80% 100%Machine-hours 3,200 4,000 Variable overhead \$64,000 \$80,000 Fixed overhead \$160,000\$160,000 Fawcett operated at 90% of maximum capacity during 2010. Actual manufacturingoverhead for 2010 is \$252,000. Fawcett uses the 2-variance analysis of manufacturing overhead.The total overhead flexible-budget variance for the year is:
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Chapter 13 / Exercise 13-4B
Managerial Accounting
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Brandy HicksWEEK 1 ASSIGNMENTSOr = \$80,000 / \$4,000 = \$20 per machine-hourTOH flexible-budget variance = \$252,000 – [\$160,000 + (\$4,000 * 0.90)(\$20)]= \$252,000 – (\$160,000 + \$72,000)= \$252,000 - \$232,000= \$20,000 U__E__5. (CMA adapted) Edney Company uses standard costing. The standard cost of its productis as follows: Direct materials \$14.50 Direct manufacturing labor 16.00 Manufacturing overhead2 machine-hours @ \$11 22.00 Total standard cost \$52.50 The manufacturing overhead cost rateis based on a denominator level of 600,000 machine-hours. Edney planned to produce 25,000units each month during 2010. The budgeted manufacturing overhead for 2010 is as follows:Variable \$3,600,000 Fixed 3,000,000 Total \$6,600,000 During November 2010, EdneyCompany produced 26,000 units. Edney used 53,500 machine-hours in November. Actualmanufacturing overhead for the month is \$315,000 variable and \$260,000 fixed. The totalmanufacturing overhead allocated during November is \$572,000. The variable overheadspending variance for November is:

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Term
Spring
Professor
Maureen Leary
Tags
Brandy Hicks
##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
The document you are viewing contains questions related to this textbook.
Chapter 13 / Exercise 13-4B
Managerial Accounting
Warren/Tayler
Expert Verified