Smokey Company provided the following information: Prepare a performance report

Question

Smokey Company provided the following information:

Prepare a performance report that shows the variances for each variable overhead item (inspection and power).

Standard variable overhead rate (SVOR) per direct labor hour $3.70 Actual variable overhead costs: Inspection $112,300 Power $95,600 Actual direct labor hours worked (AH) 56,200 Actual production in units 14,000 Standard hours (SH) allowed for actual units produced 56,000 VOH: Inspection 4 hours @ $2.00 Power 4 hours @ $1.70 Prepare a performance report that shows the variances for each variable overhead item (inspection and power). (Note: Enter both Actual and Budgeted amounts as positive amounts. The variancs amounts can be entered as a positive or a negative. In the variance type column (Varance), type "F" for favorable and "U" for unfavorable. If there is no variance enter "N" for neither in the varlance type column.) Score: 50/78 Smokey Company Performanoe Report for Variable Variances Budget for Spending Variance Budget for Efficiency Variance Budget for Actual Hours Budget @ Standard Hours Overhead Cost Item Cost Formula Actual Cost Variance (U, F or N) Variance (U, F or N) Inspection Power Total $2.00$112300.00$112400.00 595,540.00 $707,94000 $100.00 F 6000 U $16000U $95,200.00 95,200.00 $190,400.00 $17,200.00 U 340.00F $17,540.00U 1.70 95,600.00 $3.70 $207,900.00 R Points:15.38 24

Explanation / Answer

Particulars Cost formula Actual Spending variance Flexible budget Efficiency variance Static budget Machine hours 56200 56200 56000 Variable overhead cost Inspection 2 112300 100 F 112400 400 U 112000 Power 1.7 95600 60 U 95540 340 U 95200 Total 3.7 207900 40 F 207940 740 207200

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

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