Phil97
Aug 11, 2004, 09:27 AM
This question has been killing me any help would be greatly appreciated.
Michele, Inc is in the process of evaluating its manufacturing overhead costs. Michele uses a four-variance analysis of its manufacturing overhead costs. The reseults for April are as follows:
Budgeted direct labor hours per unit is used to allocated variable manufactuing overead. Fixed overhead is allocated on a per unit basis.
Budgeted amounts for April 1999 are:
Direct labor hours .30/unit
Variable labor hour overhead rate $20/DLH
Fixed manufacturing overhead $600,000
Budgeted output (denominator level output) 30,000 units
Actual amounts for April 1999 are:
Variable manufacturing overhead $340,000
Fixed manufactuing overhead $590,000
Direct labor hours 16,000
Actual output 40,000
1. What is the fixed spending variance using four-variance analysis?
a. 10000 F
b. 10000 U
c. 13500 U
d. 13500F
2. What are the fixed efficiency and the fixed production volume variances, respectively, using four variance analysis?
a. 10000U, 80000F, 200000U
b. 10000U, 80000U, 200000F
c. 5000F, 25000U, 0
d. 5000u, 25000F, 0
3. The total flexible budget variance is?
a. 90000 f
b. 90000 U
c. 80000 U
d. 80000 F
Michele, Inc is in the process of evaluating its manufacturing overhead costs. Michele uses a four-variance analysis of its manufacturing overhead costs. The reseults for April are as follows:
Budgeted direct labor hours per unit is used to allocated variable manufactuing overead. Fixed overhead is allocated on a per unit basis.
Budgeted amounts for April 1999 are:
Direct labor hours .30/unit
Variable labor hour overhead rate $20/DLH
Fixed manufacturing overhead $600,000
Budgeted output (denominator level output) 30,000 units
Actual amounts for April 1999 are:
Variable manufacturing overhead $340,000
Fixed manufactuing overhead $590,000
Direct labor hours 16,000
Actual output 40,000
1. What is the fixed spending variance using four-variance analysis?
a. 10000 F
b. 10000 U
c. 13500 U
d. 13500F
2. What are the fixed efficiency and the fixed production volume variances, respectively, using four variance analysis?
a. 10000U, 80000F, 200000U
b. 10000U, 80000U, 200000F
c. 5000F, 25000U, 0
d. 5000u, 25000F, 0
3. The total flexible budget variance is?
a. 90000 f
b. 90000 U
c. 80000 U
d. 80000 F