Crystal Glassware Company has the following standards and flexible-budget data.

Question

Crystal Glassware Company has the following standards and flexible-budget data.

  

  

Actual results for April are as follows:

  

  

Required:

   Standard variable-overhead rate $ 6.00 per direct-labor hour Standard quantity of direct labor 2 hours per unit of output Budgeted fixed overhead $ 100,000 Budgeted output 25,000 units Required 1 Required 2 Compute the variable-overhead spending and efficiency variances. Variable-Overhead Spending And Efficiency Variances (Hours-Direct-Labor Hours) Flexible Budget: Variable Overhead Variable Overhead Applied To Work In-Process Actual Variable Overhead Projected Variable Overheacd Actual Hours (AQ) Actual Rate Standard Rate (SVR) Standard Allowed Hours (SQ) Standard Allowed Standard Rate (SVR) Standard Actual (AVR) Hours (AQ) Rate (SVR) Hours (SQ) hours per hour hours per hour hours per hour hours per hour Variable-overhead spending variance Variable-overhead efficiency variance

Explanation / Answer

Solution:

Variable overhead spending and efficiency variances Hours = Direct labor hours 1 2 3 4 Actual variable overhead Projected variable overhead Flexible budget variable overhead Variable overhead applied to WIP Actual hours * Actual rate Actual hours * Standard rate Standard hours * Standard rate Standard hours * Standard rate 50000 $6.40 50000 $6.00 40000 $6.00 40000 $6.00 $20,000.00 Unfavorable $60,000.00 Unfavorable Variable overhead spending variance Variable overhead efficiency variance

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.