The following information is for pappillon

3. The following information is for Pappillon Corporation’s variable manufacturing
overhead costs last month: favorable flexible-budget variance of $3,000, unfavorable efficiency
variance 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 U
VOH spending variance = $3,000 F – ($2,500 U)
= $3,000 F + $2,5000 F
= $5,500 F
VOH spending variance $5,500
VOH efficiency variance - $2,500
VOH 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 manufacturing
overhead for 2010 is $252,000. Fawcett uses the 2-variance analysis of manufacturing overhead.
The total overhead flexible-budget variance for the year is:

Brandy Hicks
WEEK 1 ASSIGNMENTS
Or = $80,000 / $4,000 = $20 per machine-hour
TOH 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 product
is as follows: Direct materials $14.50 Direct manufacturing labor 16.00 Manufacturing overhead
2 machine-hours @ $11 22.00 Total standard cost $52.50 The manufacturing overhead cost rate
is based on a denominator level of 600,000 machine-hours. Edney planned to produce 25,000
units 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, Edney
Company produced 26,000 units. Edney used 53,500 machine-hours in November. Actual
manufacturing overhead for the month is $315,000 variable and $260,000 fixed. The total
manufacturing overhead allocated during November is $572,000. The variable overhead
spending variance for November is: