Overhead Variance Analysis The Lubbock plant of Morril’s Small Motor Division produces a major subassembly for a 6.0 horsepower motor for lawn mowers. The plant uses a standard costing system for production costing and control. The standard cost sheet for the subassembly follows:
During the year, the Lubbock plant had the following actual production activity: (a) Production of motors totaled 50,000 units; (b) The company used 82,000 direct labor hours at a total cost of $1,066,000; (c) Actual fixed overhead totaled $556,000; and (d) Actual variable overhead totaled $860,000. The Lubbock plant’s practical activity is 60,000 units per year. Standard overhead rates are computed based on practical activity measured in standard direct labor hours.
1. Compute the variable overhead spending and efficiency variances.
2. Conceptual Connection: Compute the fixed overhead spending and volume variances. Interpret the volume variance. What can be done to reduce this variance?
The most recent dividend (assume it was just paid) for New Zealand Telecom was $1.51 per share. This dividend is expected to grow at a rate of 4.5% per year indefinitely....Dec 02 2019
A teacher wants to estimate the overall average monthly exam success rates of the student in 50 different schools that are evenly located in the north, south, central, ea...Apr 08 2021
Discuss the relationships among spot rates, forward rates, inflation rates, and interest rate?Give evidences for each situation.Aug 12 2020
Assume that securitization combined with borrowing and irrational exuberance in Hyperville have driven up the value of existing financial securities at a geometric rate, ...Dec 05 2019
Jobs arrive to a file server consisting of a CPU and two disks (disk 1 and disk 2). With probability 13/20, a job goes from CPU to disk 1, and with probability 6/20, a jo...Aug 10 2020
A 4mx5mx6m room is to be heated by a baseboard resistance heater. It is desired that the resistance heater be able to raise the air temperature in the room from 7 to23oC ...May 05 2020
You have been hired to perform systems investigation for a French restaurant owner in a large metropolitan area. She is thinking of opening a new restaurant with a state ...Jul 15 2020
You work for an engineering firm in the UK which has recently set up another plant in India. Given financial pressure as a result of the economic recession, the organisat...May 25 2020
What are the different types of competitive pressures that firms competing in a global marketplace face? How can firms respond to such pressures? 144.What are the sources...Jan 11 2020
2. Common IP law-mandated periods of protection are ________.a. copyrights are protected for twenty yearsb. patents are protected for fifty yearsc. trademarks are protect...Apr 08 2021