The Lopez Company uses standard costing in its manufacturing plant for auto parts. , the budgeted output level for the year is 8,000 units ,The standard machine hours allowed per unit of output is 12 machine-hours .the budgeted Variable manufacturing overhead rate is $16 per hour and the budgeted fixed manufacturing overhead rate is $10 per hour. Actual output produced was 8,800 units. Variable manufacturing overhead incurred was $950,000. Fixed manufacturing overhead incurred was $746,000. Actual machine-hours were 98,000 required 1-calculate spending and efficiency variances for V.MOH 2-calculate sales volume variance for V.MOH 3-calculate spending and sales volume variances for F.MOH
The Lopez Company uses standard costing in its manufacturing plant for auto parts. , the budgeted output level for the year is 8,000 units ,The standard machine hours allowed per unit of output is 12 machine-hours .the budgeted Variable manufacturing overhead rate is $16 per hour and the budgeted fixed manufacturing overhead rate is $10 per hour. Actual output produced was 8,800 units. Variable manufacturing overhead incurred was $950,000. Fixed manufacturing overhead incurred was $746,000. Actual machine-hours were 98,000 required 1-calculate spending and efficiency variances for V.MOH 2-calculate sales volume variance for V.MOH 3-calculate spending and sales volume variances for F.MOH
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 4CMA: Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold...
Related questions
Concept explainers
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.
Topic Video
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning