Question

In: Accounting

Hi. I am running into trouble solving the problem below and would greatly appreciate a step-by-step...

Hi. I am running into trouble solving the problem below and would greatly appreciate a step-by-step explanation on how to arrive at the correct answers and explanations:

SHIELD, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours. (Practical capacity is 500,000 hours.) Annual budgeted overhead costs total $787,200, of which $556,800 is fixed overhead. A total of 119,400 units using 478,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $230,600, and actual fixed overhead costs were $556,250.

1. Compute the fixed overhead spending and volume variances. How would you interpret the spending variance? Discuss the possible interpretations of the volume variance. Which is most appropriate for this example?

2. Compute the variable overhead spending and efficiency variances. How is the variable overhead spending variance like the price variances of direct labor and direct materials? How is it different? How is the variable overhead efficiency variance related to the direct labor efficiency variance?

Note: please try to give your calculations and explanations on Word or excel sheet as handwriting is sometimes difficult to read.

I would appreciate detailed calculations so I can better understand how to arrive at the correct answer.

Solutions

Expert Solution

If you are benefited from the solution then please LIKE , if disliked then please specify the reason.


Related Solutions

Hello. I am running into difficulty solving the problem below and would greatly appreciate a step-by-step...
Hello. I am running into difficulty solving the problem below and would greatly appreciate a step-by-step explanation on how to arrive at the correct answer: NATLA Company manufactures consumer products and provided the following information for the month of February: Units produced 131,000 Standard direct labor hours per unit 0.20 Standard variable overhead rate (per direct labor hour) $3.40 Actual variable overhead costs $88,670 Actual hours worked 26,350 1. Calculate the variable overhead spending variance and variable overhead efficiency variance...
I would really appreciate it if you could explain this problem step by step, in as...
I would really appreciate it if you could explain this problem step by step, in as much detail as possible, as I am having a difficult time trying to understand it. Thank you :) How many liters of CO2 can be produced by combustion of 5.80 g butane with 15.0 liters of oxygen . All gases measured at STP. I appreciate your help!
I am doing a presentation on Phosphorus and am addressing the following (below) and would appreciate...
I am doing a presentation on Phosphorus and am addressing the following (below) and would appreciate information for all of the headings THANK YOU For assignment 3 you will exhaust your understanding of an assigned biogeochemical element by addressing and TEACHING the following topics in your presentation: 1. Introduction 2. The global cycle/ elemental forms 3. Temporal variation 4. The soil cycle/ elemental forms 5. Role of element in soil and how it is affected by the physical, chemical, and...
Hi, I'm just really lost on where to start and would really appreciate a step-by-step solution....
Hi, I'm just really lost on where to start and would really appreciate a step-by-step solution. Thanks Lehighton Chalk Company manufactures sidewalk chalk, which it sells online by the box at $22 per unit. Lehighton uses an actual costing system, which means that the actual costs of direct material, direct labor, and manufacturing overhead are entered into work-in-process inventory. The actual application rate for manufacturing overhead is computed each year; actual manufacturing overhead is divided by actual production (in units)...
Hello! Could someone please answer this for me? I would greatly appreciate it, and will totally...
Hello! Could someone please answer this for me? I would greatly appreciate it, and will totally like your answer! Length isn't necessarily important, just needs to be accurate and such. Thanks in advance!!!!!!! (References are needed when using examples, or include the link from where you got it and I can format the reference). "Discuss the difference in the cost of items sold by a retail shoe store, the cost of items sold by a shoe manufacturer, and the cost...
If you could explain this and answer it, I would greatly appreciate it. C. Use Excel...
If you could explain this and answer it, I would greatly appreciate it. C. Use Excel (or equivalent application) to determine how long it will take for an investment to triple in value at interest rates of 1%, 5%, 10%, 15%, 20%, and 25%. Can you determine an approximate “Rule” for how to quickly calculate how long it takes for an investment to triple in value?
Hi, I am having trouble with trying to calculate asymptotic time complexity for each of these...
Hi, I am having trouble with trying to calculate asymptotic time complexity for each of these functions. A step by step tutorial would be great. This is done in Python. Please not only the answer, but how you calculated it as well. Here is the code #Q2 # to denote ayymptotic time complexity use the following notation # O(l) O(m) O(a) O(b) # e.g. traversing through l = [1, 2, 3, 4, 5, 6, 7, 8, 9, 10] is O(l)...
Hi I am having the following problem. At the moment I am trying to create a...
Hi I am having the following problem. At the moment I am trying to create a bode plot for the following function. G(s)=(Ks+3)/((s+2)(s+3)) Note: Not K(s+2)! I then want to plot multiple bode plots for various values of K. Eg. 1,2,3, etc. I am having two separate issues. 1. How do I define the TF with a constant K in the location required (a multiple of s in the numerator) 2. How do I create multiple bode plots for values...
Hi! I am in an intro level Finance course and I am stuck on this problem....
Hi! I am in an intro level Finance course and I am stuck on this problem. Any help would be greatly appreciated. I am deciding on opening a restaurant. I was able to scrape together some capital from friends and family, but I must pay them back in 4 years at 12% per annum. I figure that it will cost me $165,000 to start up with rent, deposits, equipment, salaries, chicken, basil, rice, etc. for the first year, but I...
Hi, could you provide brief examples for the instances below. I would appreciate your explanation so...
Hi, could you provide brief examples for the instances below. I would appreciate your explanation so I can understand Question 1 TM1 is the administration team leader and they achieve all KPIs and yearly goals, is highly motivated, recent winner of best personal trainer award, self-admits they have behavioural problems, seen by other TMs as isolated, stoic, cold, aloof, insensitive and harsh to other TMs and has poor communication skills Could you describe three (3) instances where you could provide...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT