Variable Factory Overhead Variances; Journal Entries The Platter Valley factory of Bybee
Industries manufactures field boots. The cost of each boot includes direct materials, direct labor,
and manufacturing (factory) overhead. The firm traces all direct costs to products, and it assigns
overhead cost to products based on direct labor hours.
The company budgeted $15,000 variable factory overhead cost and 2,500 direct labor hours to
manufacture 5,000 pairs of boots in March.
The factory used 2,700 direct labor hours in March to manufacture 4,800 pairs of boots and spent
$15,600 on variable overhead during the month.
[LO 15-1, 15-2]
[LO 15-1, 15-2]
[LO 15-2, 15-3]
Final PDF to printer
656 Part Three Operational-Level Control
blo17029_ch15_621-670.indd 656 02/20/18 09:49 AM
1. Compute the factory overhead flexible-budget variance, the factory overhead spending variance, and
the efficiency variance for variable factory overhead for March. Round each variance to the nearest
whole number, and state whether each variance is favorable (F) or unfavorable (U).
2. Provide the appropriate journal entry to record the variable overhead spending variance and a second
entry to record the variable overhead efficiency variance for March. Assume that the company uses a
single account, Factory Overhead, to record overhead costs.
3. Comment on the factory’s operation in March with regard to variable factory overhead cost
Find the value of jacobian at the point (1,-1,0) if u = x+2y^2 -z^3 v = x^2 yz and w =2x^2 -xy >Aug 04 2020
Explain the impact of exchange rate changes on exports and imports.b) Suggest four (4) ways in which the impact on exports and imports discussed above can be reduced.Feb 06 2020
The density of atmospheric air varies with elevation, decreasing with increasing altitude. (a) Using the data given in the table, obtain a relation for thevariation of de...Jun 04 2020
As part of your personal budgeting process, you have determined that at the end of each of the next five years you will incur significant maintenance expenses on your hom...Apr 23 2020
Shinedown, Inc., wishes to maintain a growth rate of 11 percent per year and a debt-equity ratio of .2. Profit margin is 5.9 percent, and the ratio of total assets to sal...Nov 27 2019
Casper Landsten is a foreign exchange trader for a bank in New York. He has $1 million (or its Swiss franc equivalent) for a short term money market investment and wonder...Apr 01 2020
In examining the capital market line as part of the capital asset pricing model, to increase portfolio return (KP) what other variable must you increase?Aug 14 2020
Following the Trail: Identifying Hard and Soft Components of Income (Easy) A firm reported after-tax operating income of $1,298 million. Free cash flow of $234 million wa...May 25 2020
investing in this stulk b. Determine the probability of earning a rate UI l of 6 percent a portfolio with a 20 expected return. The portfolio is to consist of some combin...Dec 04 2019
HIV testing and false positives. Bayes’s rule was applied to the problem of HIV testing in The American Statistician (Aug. 2008). In North America, the probability of a p...Aug 07 2020
Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.