Question
In: Accounting
Gerhan Company's flexible budget for the units manufactured in May shows $15,610 of total factory overhead;...
Gerhan Company's flexible budget for the units manufactured in May shows $15,610 of total factory overhead; this output level represents 70% of available capacity. During May, the company applied overhead to production at the rate of $3.00 per direct labor hour (DLH), based on a denominator volume level of 6,120 DLHs, which represents 90% of available capacity. The company used 6,000 DLHs and incurred $18,500 of total factory overhead cost during May, including $6,700 for fixed factory overhead.
1. What is the variable factory overhead spending
variance?
2. What is the variable factory overhead efficiency variance?
3. What is the fixed factory overhead spending variance?
4. What is the fixed factory overhead production volume variance?
5. What is the flexible budget variance?
Please explain all answers thoroughly.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Gerhan Company's flexible budget for the units manufactured in May shows $15,640 of total factory overhead;...
Gerhan Company's flexible budget for the units manufactured in
May shows $15,640 of total factory overhead; this output level
represents 70% of available capacity. During May, the company
applied overhead to production at the rate of $3.00 per direct
labor hour (DLH), based on a denominator volume level of 6,120
DLHs, which represents 90% of available capacity. The company
worked 5,000 DLHs and incurred $16,500 of total factory overhead
cost during May, including $6,800 for fixed factory overhead.
Under a...
1. Gerhan Company's flexible budget for the units manufactured in May shows $15,720 of total factory...
1. Gerhan Company's flexible budget for the units manufactured
in May shows $15,720 of total factory overhead; this output level
represents 70% of available capacity. During May, the company
applied overhead to production at the rate of $3 per direct labor
hour (DLH), based on a denominator volume level of 5,850 DLHs,
which represents 90% of available capacity. The company used 5,000
DLHs and incurred $16,000 of total factory overhead cost during
May, including $9,900 for fixed factory overhead.
What...
A flexible budget is appropriate for a marketing budget and a factory overhead budget. True False
A flexible budget is appropriate for a marketing budget and a
factory overhead budget.
True
False
When preparing the flexible budget for factory overhead, variable costs may include all but the following:...
When preparing the flexible budget for factory overhead,
variable costs may include all but the
following:
a. repair costs
b. insurance
c. electricity to run the
machines
d. shop supplies
When preparing the flexible budget for factory overhead, variable costs may include all but the following:...
When preparing the flexible budget for factory overhead,
variable costs may include all but the
following:
a. repair costs
b. insurance
c. electricity to run the
machines
d. shop supplies
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget
Leno Manufacturing Company prepared the following factory
overhead cost budget for the Press Department for October of the
current year, during which it expected to require 18,000 hours of
productive capacity in the department:
Variable overhead cost:
Indirect factory labor
$165,600
Power and light
5,760
Indirect materials
46,800
Total variable overhead
cost
$218,160
Fixed overhead cost:
Supervisory salaries
$76,360
Depreciation of plant and equipment
48,000
Insurance and property taxes
30,540
Total fixed overhead
cost
154,900
Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget
Leno Manufacturing Company prepared the following factory
overhead cost budget for the Press Department for October of the
current year, during which it expected to require 9,000 hours of
productive capacity in the department:
Variable overhead cost:
Indirect factory labor
$76,500
Power and light
2,790
Indirect materials
21,600
Total variable overhead
cost
$100,890
Fixed overhead cost:
Supervisory salaries
$35,310
Depreciation of plant and equipment
22,200
Insurance and property taxes
14,120
Total fixed overhead
cost
71,630
Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget
Leno Manufacturing Company prepared the following factory
overhead cost budget for the Press Department for October of the
current year, during which it expected to require 14,000 hours of
productive capacity in the department:
Variable overhead cost:
Indirect factory labor
$133,000
Power and light
6,440
Indirect materials
30,800
Total variable overhead
cost
$170,240
Fixed overhead cost:
Supervisory salaries
$59,580
Depreciation of plant and equipment
37,450
Insurance and property taxes
23,830
Total fixed overhead
cost
120,860
Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget
Leno Manufacturing Company prepared the following factory
overhead cost budget for the Press Department for October of the
current year, during which it expected to require 13,000 hours of
productive capacity in the department:
Variable overhead cost:
Indirect factory labor
$122,200
Power and light
4,160
Indirect materials
35,100
Total variable overhead
cost
$161,460
Fixed overhead cost:
Supervisory salaries
$56,510
Depreciation of plant and equipment
35,520
Insurance and property taxes
22,600
Total fixed overhead
cost
114,630
Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget
Leno Manufacturing Company prepared the following factory
overhead cost budget for the Press Department for October of the
current year, during which it expected to require 15,000 hours of
productive capacity in the department:
Variable overhead costs:
Indirect factory labor
$118,500
Power and light
6,900
Indirect materials
42,000
Total variable overhead
cost
$167,400
Fixed overhead costs:
Supervisory salaries
$58,590
Depreciation of plant and equipment
36,830
Insurance and property taxes
23,440
Total fixed overhead
cost
118,860
Total factory...
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