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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 28,400.

Required:

1. Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead variances, using the 4-variance analysis in Exhibit 8-4 (page 324).

2. Prepare journal entries using the 4-variance analysis.

3. Describe how individual fixed manufacturing overhead items are controlled from day to day.

4. Discuss possible causes of the fixed manufacturing overhead variances.

plz use computer writing, not hand writing

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ekkarill92 answered 2 years ago
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