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8-23 Variable manufacturing overhead variance analysis. The French Bread Company bakes baguettes for distribution to upscale...
8-23 Variable manufacturing overhead variance analysis. The French Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. Variable manufacturing overhead is allocated to products on the basis of standard direct manufacturing labor-hours. Following is some budget data for the French Bread Company:
|
Direct manufacturing labor use |
0.02 hours per baguette |
|
Variable manufacturing overhead |
$10.00 per direct manufacturing labor-hour |
The French Bread Company provides the following additional data for the year ended December 31, 2017:
|
Planned (budgeted) output |
3,200,000 baguettes |
|
Actual production |
2,800,000 baguettes |
|
Direct manufacturing labor |
50,400 hours |
|
Actual variable manufacturing overhead |
$680,400 |
Required:
1. What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is French Bread budgeting?)
2. Prepare a variance analysis of variable manufacturing overhead. Use Exhibit 8-4 (page 324) for reference.
3. Discuss the variances you have calculated and give possible explanations for them.
plz use computer writing, not hard writing
Solutions
ekkarill92 answered 3 years agoRelated Solutions
8-23 Variable manufacturing overhead variance analysis. The French Bread Company bakes baguettes for distribution to upscale...
8-23 Variable manufacturing overhead variance analysis. The
French Bread Company bakes baguettes for distribution to upscale
grocery stores. The company has two direct-cost categories: direct
materials and direct manufacturing labor. Variable manufacturing
overhead is allocated to products on the basis of standard direct
manufacturing labor-hours. Following is some budget data for the
French Bread Company: Direct manufacturing labor use 0.02 hours per
baguette Variable manufacturing overhead $10.00 per direct
manufacturing labor-hour The French Bread Company provides the
following additional data...
The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two...
The Sourdough Bread Company bakes baguettes for distribution to
upscale grocery stores. The company has two direct-cost categories:
direct materials and direct manufacturing labor. Variable
manufacturing overhead is allocated to products on the basis of
standard direct manufacturing labor-hours. Following is some budget
data for the Sourdough Bread Company:
Direct manufacturing labor use 0.02 hours per baguette
Variable manufacturing overhead $10.00 per direct manufacturing
labor-hour
The Sourdough Bread Company provides the following additional
data for the year ended December 31,...
The Boston Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two...
The Boston Bread Company bakes baguettes for distribution to
upscale grocery stores. The company has two direct-cost
categories: direct materials and direct manufacturing labor.
Variable manufacturing overhead is allocated to products on the
basis of standard direct manufacturing labor-hours. Following is
some budget data for the
Boston Bread Company:
Direct manufacturing labor use
0.02 hours per baguette
Variable manufacturing overhead
$10.00 per direct manufacturing labor-hour
The
Boston
Bread Company provides the following additional data for the
year ended December 31,...
The Brown Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two...
The Brown Bread Company bakes baguettes for distribution to
upscale grocery stores. The company has two direct-cost
categories: direct materials and direct manufacturing labor.
Variable manufacturing overhead is allocated to products on the
basis of standard direct manufacturing labor-hours.
Direct manufacturing labor use
0.02 hours per baguette
Variable manufacturing overhead
$10.00 per direct manufacturing labor-hour
Planned (budgeted) output
3,300,000 baguettes
Actual production
3,000,000 baguettes
Direct manufacturing labor
54,100 hours
Actual variable manufacturing overhead
$708,710
The Brown Bread Company also allocates...
The Brown bread Company bakes baguettes for distribution to upscale grocery stores. The company has two...
The Brown bread Company bakes baguettes for distribution to
upscale grocery stores. The company has two direct-cost
categories: direct materials and direct manufacturing labor.
Variable manufacturing overhead is allocated to products on the
basis of standard direct manufacturing labor-hours. Following is
some budget data for the Brown Bread Company:
Budget data
Direct manufacturing labor use
0.02 hours per baguette
Variable manufacturing overhead
$10.00 per direct manufacturing labor-hour
The Brown Bread Company provides the following additional data
for the year ended...
E8-24 The Whole Bread Company bakes baguettes for distribution to upscale grocery stores. The company has...
E8-24 The Whole Bread Company bakes baguettes for distribution
to upscale grocery stores. The company has two direct-cost
categories: direct materials and direct manufacturing labor. The
Whole Bread Company allocates fixed manufacturing overhead to
products on the basis of standard direct manufacturing
labor-hours.
Requirements 1. Prepare a variance analysis of fixed
manufacturing overhead cost. 2. Is fixed overhead underallocated
or overallocated? By what amount? 3. Comment on your results.
Discuss the variances and explain what may be driving them.
The...
Variable manufacturing overhead, variance analysis. Omega Arts is a manufacturer of designer vases. The cost of...
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
manufactur- ing 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 per...
8-27 Straightforward 4-variance overhead analysis. The Lopez Company uses standard costing in its manufacturing plant for...
8-27
Straightforward 4-variance overhead
analysis. The Lopez Company uses standard costing
in its manufacturing plant for auto parts. The standard cost of a
particular auto part, based on a denominator level of 4,000 output
units per year, included 6 machine-hours of variable manufacturing
overhead at $8 per hour and 6 machine-hours of fixed manufacturing
overhead at $15 per hour. Actual output produced was 4,400 units.
Variable manufacturing overhead incurred was $245,000. Fixed
manufacturing overhead incurred was $373,000. Actual machine-hours
were...
Prefab Pools Company Variance Analysis for Direct Materials, Direct Labor, and Variable Overhead Prefab Pools Company...
Prefab Pools Company Variance Analysis for Direct Materials,
Direct Labor, and Variable Overhead Prefab Pools Company produces
large prefabricated in-ground swimming pools made of a specialized
plastic material. The master budget shows the following standards
information and indicates the company expected to produce and sell
600 units for the month of April. Direct materials: 500 pounds per
unit at $ 7 per pound Direct labor: 46 hours per unit at $12 per
hour Variable manufacturing overhead: 46 direct labor hours...
Variable cost (per pound) Direct materials $3.75 Direct manufacturing labor 8.00 Variable overhead (manufacturing, marketing, distribution...
Variable cost (per pound)
Direct materials $3.75
Direct manufacturing labor 8.00
Variable overhead (manufacturing, marketing, distribution and
customer service) 2.05
Total variable cost per bowl $13.80
Fixes costs
Manufacturing $12,000
Marketing, distribution, and customer service 214,800
Total fixed cost $226,800
Selling price $30
Expected sales, 19,500 units $585,000
Income tax rate 40%
S.L. Brook and Company, a manufacturer of quality handmade
walnut bowls, has had a steady growth in sales for the past 5
years. However, increased competition has led...
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