The following data are given for Bahia Company: Budgeted production Actual production Materials: Standard price per pound Standard pounds per completed unit Actual pounds purchased and used in production Actual price paid for materials Labor: Standard hourly labor rate Standard hours allowed per completed unit Actual labor hours worked Actual total labor costs Overhead: Actual and budgeted fixed overhead Standard variable overhead rate Actual variable overhead costs Overhead is applied on standard labor hours. The variable factory overhead controllable variance is a. $540 favorable Ob. $540 unfavorable c. $65 favorable Od. $65 unfavorable 1,000 units 980 units $2.00 12 11,800 $23,000 $14.00 per hour 4.5 4,560 $62,928 $27,000 $3.50 per standard direct labor hour $15,500
The following data are given for Bahia Company: Budgeted production Actual production Materials: Standard price per pound Standard pounds per completed unit Actual pounds purchased and used in production Actual price paid for materials Labor: Standard hourly labor rate Standard hours allowed per completed unit Actual labor hours worked Actual total labor costs Overhead: Actual and budgeted fixed overhead Standard variable overhead rate Actual variable overhead costs Overhead is applied on standard labor hours. The variable factory overhead controllable variance is a. $540 favorable Ob. $540 unfavorable c. $65 favorable Od. $65 unfavorable 1,000 units 980 units $2.00 12 11,800 $23,000 $14.00 per hour 4.5 4,560 $62,928 $27,000 $3.50 per standard direct labor hour $15,500
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 1P: The cost behavior patterns below are lettered A through H. The vertical axes of the graphs represent...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![The following data are given for Bahia Company:
Budgeted production
Actual production
Materials:
Standard price per pound
Standard pounds per completed unit
Actual pounds purchased and used in production
Actual price paid for materials
Labor:
Standard hourly labor rate
Standard hours allowed per completed unit
Actual labor hours worked
Actual total labor costs
Overhead:
Actual and budgeted fixed overhead
Standard variable overhead rate
Actual variable overhead costs
Overhead is applied on standard labor hours.
The variable factory overhead controllable variance is
a. $540 favorable
Ob. $540 unfavorable
c. $65 favorable
Od. $65 unfavorable
1,000 units
980 units
$2.00
12
11,800
$23,000
$14.00 per hour
4.5
4,560
$62,928
$27,000
$3.50 per standard direct labor hour
$15,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5128484f-b00a-42ff-aa39-e56cf1809aa1%2F5983fb32-2be0-465e-a8f3-b8bf73f313ab%2Fsymue8_processed.png&w=3840&q=75)
Transcribed Image Text:The following data are given for Bahia Company:
Budgeted production
Actual production
Materials:
Standard price per pound
Standard pounds per completed unit
Actual pounds purchased and used in production
Actual price paid for materials
Labor:
Standard hourly labor rate
Standard hours allowed per completed unit
Actual labor hours worked
Actual total labor costs
Overhead:
Actual and budgeted fixed overhead
Standard variable overhead rate
Actual variable overhead costs
Overhead is applied on standard labor hours.
The variable factory overhead controllable variance is
a. $540 favorable
Ob. $540 unfavorable
c. $65 favorable
Od. $65 unfavorable
1,000 units
980 units
$2.00
12
11,800
$23,000
$14.00 per hour
4.5
4,560
$62,928
$27,000
$3.50 per standard direct labor hour
$15,500
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