acct 212 homework 7 chapter23acct 212 homework 7 chapter23acct 212 homework 7 chapter231.

award:

5 out of

5.00 points

Exercise 24-1 Preparation of flexible budgets L.O. P1

Mesa

Company’s fixed budget for the first quarter of calendar year 2011 reveals

the following.

Sales

(12,500 units)

$

2,637,500

Cost

of goods sold

Direct

materials

$

311,125

Direct

labor

526,000

Production

supplies

332,625

Plant

manager salary

111,125

1,280,875

Gross

profit

1,356,625

Selling

expenses

Sales

commissions

94,000

Packaging

177,625

Advertising

100,000

371,625

Administrative

expenses

Administrative

salaries

161,125

Depreciationoffice

equip.

131,125

Insurance

101,125

Office

rent

111,125

504,500

Income

from operations

$

480,500

Prepare

flexible budgets that show variable costs per unit, fixed costs, and three

different flexible budgets for sales volumes of 10,500, 12,500, and 15,500

units. (Input all amounts as positive values.

Round your “Variable amount per unit” to 2 decimal places. Omit

the “$” sign in your response.)

2.

award:

3 out of

3.00 points

Exercise 24-3 Preparation of a flexible budget performance report L.O.

P1

Cimarron

Companys fixed budget performance report for July follows. The $653,000

budgeted expenses include $613,820 variable expenses and $39,180 fixed

expenses. Actual expenses include $51,180 fixed expenses.

Fixed Budget

Actual Results

Variances

Sales

(in units)

8,700

11,100

Sales

(in dollars)

$

870,000

$

1,110,000

$

240,000

F

Total

expenses

653,000

783,600

130,600

U

Income

from operations

$

217,000

$

326,400

$

109,400

F

Prepare

a flexible budget performance report showing any variances between budgeted

results and actual results. List fixed and variable expenses separately. (Input all amounts as a positive value. Indicate

the effect of each variance by selecting “F” for favorable,

“U” for unfavorable, and “None” for no effect (i.e., zero

variance). Leave no cells blank – be certain to enter “0” wherever

required. Do not round your intermediate calculations and round your final

answers to the nearest dollar amount. Omit the “$” sign in your

response.)

eBook LinkView Hint #1

Worksheet

Difficulty: Medium

Exercise 24-3 Preparation of a flexible budget performance report L.O.

P1

Learning Objective: 24-P1 Prepare a flexible budget and interpret a

flexible budget performance report.

3.

award:

3 out of

3.00 points

Exercise 24-4 Preparation of a flexible budget performance report L.O.

P1

Daytec

Companys fixed budget performance report for June follows. The $594,000

budgeted expenses include $450,000 variable expenses and $144,000 fixed

expenses. Actual expenses include $134,000 fixed expenses.

Fixed Budget

Actual Results

Variances

Sales

(in units)

8,100

7,000

Sales

(in dollars)

$

648,000

$

623,000

$

25,000

U

Total

expenses

594,000

563,000

31,000

F

Income

from operations

$

54,000

$

60,000

$

6,000

F

Prepare

a flexible budget performance report that showing any variances between

budgeted and actual results. List fixed and variable expenses separately. (Indicate the effect of each variance by selecting

“F” for favorable, “U” for unfavorable, and

“None” for no effect (i.e., zero variance). Input all amounts as

positive values. Do not round intermediate calculations and round final

answers to the nearest dollar amount. Omit the “$” sign in

your response.)

eBook LinkView Hint #1

Worksheet

Difficulty: Medium

Exercise 24-4 Preparation of a flexible budget performance report L.O.

P1

Learning Objective: 24-P1 Prepare a flexible budget and interpret a

flexible budget performance report.

4.

award:

2 out of

2.00 points

Exercise 24-5 Computation and interpretation of labor variances L.O. P2

After

evaluating Zero Companys manufacturing process, management decides to

establish standards of 1.5 hours of direct labor per unit of product and $21

per hour for the labor rate. During October, the company uses 5,450 hours of

direct labor at a $119,900 total cost to produce 3,700 units of product. In

November, the company uses 5,300 hours of direct labor at a $113,950 total

cost to produce 3,800 units of product.

(1)

Compute

the rate variance, the efficiency variance, and the total direct labor cost

variance for each of these two months. (Input

all amounts as a positive value. Indicate

the effect of each variance by selecting “F” for favorable,

“U” for unfavorable, and “None” for no effect (i.e., zero

variance). Leave no cells blank – be certain to enter “0” wherever

required. Round your intermediate calculations to 2 decimal places

and round your final answers to the nearest dollar amount.Omit the

“$” sign in your response.)

rev: 12_15_2012

eBook LinkView Hint #1

Worksheet

Difficulty: Medium

Exercise 24-5 Computation and interpretation of labor variances L.O.

P2

Learning Objective: 24-P2 Compute materials and labor variances.

Exercise 24-7A Computation and interpretation of overhead spending,

efficiency, and volume variances L.O. P3

[The following information applies to

the questions displayed below.]

Sonic

Company set the following standard costs for one unit of its product for

2011.

Direct

material (16 Ibs. @ $3.10 per Ib.)

$

49.60

Direct

labor (12 hrs. @ $7.30 per hr.)

87.60

Factory

variable overhead (12 hrs. @ $1.60 per hr.)

19.20

Factory

fixed overhead (12 hrs. @ $0.46 per hr.)

5.52

Standard

cost

$

161.92

The

$2.06 ($1.60 + $0.46) total overhead rate per direct labor hour is based on

an expected operating level equal to 75% of the factory’s capacity of 47,000

units per month. The following monthly flexible budget information is also

available.

Operating Levels (% of capacity)

70%

75%

80%

Budgeted

output (units)

32,900

35,250

37,600

Budgeted

labor (standard hours)

394,800

423,000

451,200

Budgeted

overhead (dollars)

Variable

overhead

$

631,680

$

676,800

$

721,920

Fixed

overhead

194,580

194,580

194,580

Total

overhead

$

826,260

$

871,380

$

916,500

During

the current month, the company operated at 70% of capacity, employees worked

371,800 hours, and the following actual overhead costs were incurred.

Variable

overhead costs

$

586,180

Fixed

overhead costs

203,708

Total

overhead costs

$

789,888

Section Break

Difficulty: Medium

Exercise 24-7A Computation and interpretation of overhead spending,

efficiency, and volume variances L.O. P3

Learning Objective: 24-P3 Compute overhead variances.

5.

award:

2 out of

2.00 points

Exercise 24-7 Part 1

1.

Compute

variable overhead spending and efficiency variances. (Input all amounts as a positive value. Indicate the effect

of each variance by selecting “F” for favorable, “U” for

unfavorable, and “None” for no effect (i.e., zero variance). Leave

no cells blank – be certain to enter “0” wherever required. Omit

the “$” sign in your response.)

eBook LinkView Hint #1

Worksheet

Difficulty: Medium

Exercise 24-7 Part 1

Learning Objective: 24-P3 Compute overhead variances.

6.

award:

2 out of

2.00 points

Exercise 24-7 Part 2

2.

Compute

Fixed overhead spending and volume variances. (Input all amounts as a positive value. Indicate the effect of each

variance by selecting “F” for favorable, “U” for

unfavorable, and “None” for no effect (i.e., zero variance). Leave

no cells blank – be certain to enter “0” wherever required. Omit

the “$” sign in your response.)

eBook LinkView Hint #1

Worksheet

Difficulty: Medium

Exercise 24-7 Part 2

Learning Objective: 24-P3 Compute overhead variances.

7.

award:

1 out of

1.00 point

Exercise 24-7 Part 3

3.

Compute

controllable variance. (Input all amounts as

a positive value. Indicate the effect of each variance by selecting

“F” for favorable, “U” for unfavorable, and

“None” for no effect (i.e., zero variance). Leave no cells blank –

be certain to enter “0” wherever required. Omit the “$”

sign in your response.)

eBook LinkView Hint #1

Worksheet

Difficulty: Medium

Exercise 24-7 Part 3

Learning Objective: 24-P3 Compute overhead variances.

8.

award:

2 out of

2.00 points

Exercise 24-8 Computation and interpretation of materials variances L.O.

P2

BTS

Company made 4,400 bookshelves using 22,400 board feet of wood costing

$273,280. The companys direct materials standards for one bookshelf are 10

board feet of wood at $12 per board foot.

(1)

Compute

the direct materials variances incurred in manufacturing these bookshelves. (Input all amounts as a positive value. Indicate

the effect of each variance by selecting “F” for favorable,

“U” for unfavorable, and “None” for no effect (i.e., zero

variance). Leave no cells blank – be certain to enter “0” wherever

required. Round your intermediate calculations to 2 decimal places and final

answers to the nearest dollar amount. Omit the “$” sign in your

response.)

eBook LinkView Hint #1

Worksheet

Difficulty: Medium

Exercise 24-8 Computation and interpretation of materials variances

L.O. P2

Learning Objective: 24-P2 Compute materials and labor variances.

9.

award:

3 out of

3.00 points

Exercise 24-9A Materials variances recorded and closed L.O. P4

BTS

Company made 7,900 bookshelves using 89,900 board feet of wood costing

$539,400. The companys direct materials standards for one bookshelf are 13

board feet of wood at $6.10 per board foot. BTS Company records standard

costs in its accounts and its material variances in separate accounts when it

assigns materials costs to the Goods in Process Inventory account.

(1)

Show

the journal entry that both charges the direct materials costs to the Goods

in Process Inventory account and records the materials variances in their

proper accounts. (Do not round your

intermediate calculations. Omit the “$” sign in your response.)

(2)

Assume

that BTSs material variances are the only variances accumulated in the

accounting period and that they are immaterial. Prepare the adjusting journal

entry to close the variance accounts at period-end. (Do not round your intermediate calculations. Omit the

“$” sign in your response.)

eBook LinkView Hint #1

Worksheet

Difficulty: Medium

Exercise 24-9A Materials variances recorded and closed L.O. P4

Learning Objective: 24-P4 Appendix 24A-Prepare journal entries for

standard costs and account for price and quantity variances.

10.

award:

1.60 out of

2.00 points

Exercise 24-10 Computation of total overhead rate and total overhead

variance L.O. P3

Earth

Company expects to operate at 60% of its productive capacity of 52,000 units

per month. At this planned level, the company expects to use 26,000 standard

hours of direct labor. Overhead is allocated to products using a

predetermined standard rate based on direct labor hours. At the 60% capacity

level, the total budgeted cost includes $65,000 fixed overhead cost and

$291,200 variable overhead cost. In the current month, the company incurred

$314,000 actual overhead and 31,457 actual labor hours while producing 37,900

units.

(1)

Compute

its overhead application rate for total overhead. (Round your answers to 2 decimal places. Omit the

“$” sign in your response.)

(2)

Compute

its total overhead variance. (Input the

amount as positive value. Indicate

the effect of each variance by selecting “F” for favorable,

“U” for unfavorable, and “None” for no effect (i.e., zero

variance). Leave no cells blank – be certain to enter

“0” wherever required. Round your intermediate calculations to

two decimal places and final answer to the nearest dollar amount. Omit

the “$” sign in your response.)

eBook LinkView Hint #1

Worksheet

Difficulty: Medium

Exercise 24-10 Computation of total overhead rate and total overhead

variance L.O. P3

Learning Objective: 24-P3 Compute overhead variances.

1.

award:

2 out of

2.00 points

Exercise 24-11 Computation of volume and controllable overhead variances

L.O. P3

Earth

Company expects to operate at 80% of its productive capacity of 51,000 units

per month. At this planned level, the company expects to use 30,600 standard

hours of direct labor. Overhead is allocated to products using a

predetermined standard rate based on direct labor hours. At the 80% capacity

level, the total budgeted cost includes $61,200 fixed overhead cost and

$306,000 variable overhead cost. In the current month, the company incurred

$330,000 actual overhead and 23,250 actual labor hours while producing 31,000

units.

(1)

Compute

the overhead volume variance. (Input the

amount as positive value. Indicate the effect of each variance by

selecting “F” for favorable, “U” for unfavorable, and

“None” for no effect (i.e., zero variance). Leave no cells blank –

be certain to enter “0” wherever required. Round your hours per

unit to 2 decimal places. Omit the “$” sign in your response.)

(2)

Compute

the overhead controllable variance.(Input the

amount as positive value. Indicate the effect of each variance by

selecting “F” for favorable, “U” for unfavorable, and

“None” for no effect (i.e., zero variance). Leave no cells blank –

be certain to enter “0” wherever required. Round your hours per

unit to 2 decimal places. Omit the “$” sign in your response.)

eBook LinkView Hint #1

Worksheet

Difficulty: Medium

Exercise 24-11 Computation of volume and controllable overhead

variances L.O. P3

Learning Objective: 24-P3 Compute overhead variances.

12.

award:

2 out of

2.00 points

Exercise 24-12 Computing and interpreting sales variances L.O. A1

Comp

Wiz sells computers. During May 2011, it sold 600 computers at a $700 average

price each. The May 2011 fixed budget included sales of 650 computers at an

average price of $660 each.

(1)

Compute

the sales price variance and the sales volume variance for May 2011. (Input all amounts as a positive value. Indicate the effect

of each variance by selecting “F” for favorable, “U” for

unfavorable, and “None” for no effect (i.e., zero variance). Leave

no cells blank – be certain to enter “0” wherever required. Omit

the “$” sign in your response).

eBook LinkView Hint #1

Worksheet

Difficulty: Medium

Exercise 24-12 Computing and interpreting sales variances L.O. A1

Learning Objective: 24-A1 Analyze changes in sales from expected

amounts.

1.award:

5 out of

5.00 points Exercise 24-1 Preparation of flexible budgets L.O. P1Mesa

Company’s fixed budget for the first quarter of calendar year 2011 reveals

the following. Sales

(12,500 units) $2,637,500 Cost

of goods sold Direct

materials $311,125 Direct

labor 526,000 Production

supplies 332,625 Plant

manager salary 111,125 1,280,875 Gross

profit 1,356,625 Selling

expenses Sales

commissions 94,000 Packaging 177,625 Advertising 100,000 371,625 Administrative

expenses Administrative

salaries 161,125 Depreciationoffice

equip. 131,125 Insurance 101,125 Office

rent 111,125 504,500 Income

from operations $480,500 Prepare

flexible budgets that show variable costs per unit, fixed costs, and three

different flexible budgets for sales volumes of 10,500, 12,500, and 15,500

units. (Input all amounts as positive values.

Round your “Variable amount per unit” to 2 decimal places. Omit

the “$” sign in your response.)

2.award:

3 out of

3.00 points Exercise 24-3 Preparation of a flexible budget performance report L.O.

P1Cimarron

Companys fixed budget performance report for July follows. The $653,000

budgeted expenses include $613,820 variable expenses and $39,180 fixed

expenses. Actual expenses include $51,180 fixed expenses. Fixed BudgetActual ResultsVariances Sales

(in units) 8,700 11,100 Sales

(in dollars)$870,000 $1,110,000 $240,000 F Total

expenses 653,000 783,600 130,600 U Income

from operations$217,000 $326,400 $109,400 F Prepare

a flexible budget performance report showing any variances between budgeted

results and actual results. List fixed and variable expenses separately. (Input all amounts as a positive value. Indicate

the effect of each variance by selecting “F” for favorable,

“U” for unfavorable, and “None” for no effect (i.e., zero

variance). Leave no cells blank – be certain to enter “0” wherever

required. Do not round your intermediate calculations and round your final

answers to the nearest dollar amount. Omit the “$” sign in your

response.)

eBook LinkView Hint #1WorksheetDifficulty: Medium Exercise 24-3 Preparation of a flexible budget performance report L.O.

P1Learning Objective: 24-P1 Prepare a flexible budget and interpret a

flexible budget performance report.

3.award:

3 out of

3.00 points Exercise 24-4 Preparation of a flexible budget performance report L.O.

P1Daytec

Companys fixed budget performance report for June follows. The $594,000

budgeted expenses include $450,000 variable expenses and $144,000 fixed

expenses. Actual expenses include $134,000 fixed expenses. Fixed BudgetActual ResultsVariances Sales

(in units) 8,100 7,000 Sales

(in dollars)$648,000 $623,000 $25,000 U Total

expenses 594,000 563,000 31,000 F Income

from operations$54,000 $60,000 $6,000 F Prepare

a flexible budget performance report that showing any variances between

budgeted and actual results. List fixed and variable expenses separately. (Indicate the effect of each variance by selecting

“F” for favorable, “U” for unfavorable, and

“None” for no effect (i.e., zero variance). Input all amounts as

positive values. Do not round intermediate calculations and round final

answers to the nearest dollar amount. Omit the “$” sign in

your response.)

eBook LinkView Hint #1WorksheetDifficulty: Medium Exercise 24-4 Preparation of a flexible budget performance report L.O.

P1Learning Objective: 24-P1 Prepare a flexible budget and interpret a

flexible budget performance report.

4.award:

2 out of

2.00 points Exercise 24-5 Computation and interpretation of labor variances L.O. P2After

evaluating Zero Companys manufacturing process, management decides to

establish standards of 1.5 hours of direct labor per unit of product and $21

per hour for the labor rate. During October, the company uses 5,450 hours of

direct labor at a $119,900 total cost to produce 3,700 units of product. In

November, the company uses 5,300 hours of direct labor at a $113,950 total

cost to produce 3,800 units of product. (1)Compute

the rate variance, the efficiency variance, and the total direct labor cost

variance for each of these two months. (Input

all amounts as a positive value. Indicate

the effect of each variance by selecting “F” for favorable,

“U” for unfavorable, and “None” for no effect (i.e., zero

variance). Leave no cells blank – be certain to enter “0” wherever

required. Round your intermediate calculations to 2 decimal places

and round your final answers to the nearest dollar amount.Omit the

“$” sign in your response.)

rev: 12_15_2012

eBook LinkView Hint #1WorksheetDifficulty: Medium Exercise 24-5 Computation and interpretation of labor variances L.O.

P2Learning Objective: 24-P2 Compute materials and labor variances.

Exercise 24-7A Computation and interpretation of overhead spending,

efficiency, and volume variances L.O. P3[The following information applies to

the questions displayed below.]Sonic

Company set the following standard costs for one unit of its product for

2011. Direct

material (16 Ibs. @ $3.10 per Ib.) $49.60 Direct

labor (12 hrs. @ $7.30 per hr.) 87.60 Factory

variable overhead (12 hrs. @ $1.60 per hr.) 19.20 Factory

fixed overhead (12 hrs. @ $0.46 per hr.) 5.52 Standard

cost $161.92 The

$2.06 ($1.60 + $0.46) total overhead rate per direct labor hour is based on

an expected operating level equal to 75% of the factory’s capacity of 47,000

units per month. The following monthly flexible budget information is also

available. Operating Levels (% of capacity) 70% 75% 80% Budgeted

output (units) 32,900 35,250 37,600 Budgeted

labor (standard hours) 394,800 423,000 451,200 Budgeted

overhead (dollars) Variable

overhead $631,680 $676,800 $721,920 Fixed

overhead 194,580 194,580 194,580 Total

overhead $826,260 $871,380 $916,500 During

the current month, the company operated at 70% of capacity, employees worked

371,800 hours, and the following actual overhead costs were incurred. Variable

overhead costs $586,180 Fixed

overhead costs 203,708 Total

overhead costs $789,888 Section BreakDifficulty: Medium Exercise 24-7A Computation and interpretation of overhead spending,

efficiency, and volume variances L.O. P3Learning Objective: 24-P3 Compute overhead variances. 5.award:

2 out of

2.00 points Exercise 24-7 Part 11.Compute

variable overhead spending and efficiency variances. (Input all amounts as a positive value. Indicate the effect

of each variance by selecting “F” for favorable, “U” for

unfavorable, and “None” for no effect (i.e., zero variance). Leave

no cells blank – be certain to enter “0” wherever required. Omit

the “$” sign in your response.)

eBook LinkView Hint #1WorksheetDifficulty: Medium Exercise 24-7 Part 1Learning Objective: 24-P3 Compute overhead variances.

6.award:

2 out of

2.00 points Exercise 24-7 Part 22.Compute

Fixed overhead spending and volume variances. (Input all amounts as a positive value. Indicate the effect of each

variance by selecting “F” for favorable, “U” for

unfavorable, and “None” for no effect (i.e., zero variance). Leave

no cells blank – be certain to enter “0” wherever required. Omit

the “$” sign in your response.)

eBook LinkView Hint #1WorksheetDifficulty: Medium Exercise 24-7 Part 2Learning Objective: 24-P3 Compute overhead variances.

7.award:

1 out of

1.00 point Exercise 24-7 Part 33.Compute

controllable variance. (Input all amounts as

a positive value. Indicate the effect of each variance by selecting

“F” for favorable, “U” for unfavorable, and

“None” for no effect (i.e., zero variance). Leave no cells blank –

be certain to enter “0” wherever required. Omit the “$”

sign in your response.)

eBook LinkView Hint #1WorksheetDifficulty: Medium Exercise 24-7 Part 3Learning Objective: 24-P3 Compute overhead variances.

8.award:

2 out of

2.00 points Exercise 24-8 Computation and interpretation of materials variances L.O.

P2BTS

Company made 4,400 bookshelves using 22,400 board feet of wood costing

$273,280. The companys direct materials standards for one bookshelf are 10

board feet of wood at $12 per board foot. (1)Compute

the direct materials variances incurred in manufacturing these bookshelves. (Input all amounts as a positive value. Indicate

the effect of each variance by selecting “F” for favorable,

“U” for unfavorable, and “None” for no effect (i.e., zero

variance). Leave no cells blank – be certain to enter “0” wherever

required. Round your intermediate calculations to 2 decimal places and final

answers to the nearest dollar amount. Omit the “$” sign in your

response.)

eBook LinkView Hint #1WorksheetDifficulty: Medium Exercise 24-8 Computation and interpretation of materials variances

L.O. P2Learning Objective: 24-P2 Compute materials and labor variances.

9.award:

3 out of

3.00 points Exercise 24-9A Materials variances recorded and closed L.O. P4BTS

Company made 7,900 bookshelves using 89,900 board feet of wood costing

$539,400. The companys direct materials standards for one bookshelf are 13

board feet of wood at $6.10 per board foot. BTS Company records standard

costs in its accounts and its material variances in separate accounts when it

assigns materials costs to the Goods in Process Inventory account.(1)Show

the journal entry that both charges the direct materials costs to the Goods

in Process Inventory account and records the materials variances in their

proper accounts. (Do not round your

intermediate calculations. Omit the “$” sign in your response.)(2)Assume

that BTSs material variances are the only variances accumulated in the

accounting period and that they are immaterial. Prepare the adjusting journal

entry to close the variance accounts at period-end. (Do not round your intermediate calculations. Omit the

“$” sign in your response.)

eBook LinkView Hint #1WorksheetDifficulty: Medium Exercise 24-9A Materials variances recorded and closed L.O. P4Learning Objective: 24-P4 Appendix 24A-Prepare journal entries for

standard costs and account for price and quantity variances. 10.award:

1.60 out of

2.00 points Exercise 24-10 Computation of total overhead rate and total overhead

variance L.O. P3Earth

Company expects to operate at 60% of its productive capacity of 52,000 units

per month. At this planned level, the company expects to use 26,000 standard

hours of direct labor. Overhead is allocated to products using a

predetermined standard rate based on direct labor hours. At the 60% capacity

level, the total budgeted cost includes $65,000 fixed overhead cost and

$291,200 variable overhead cost. In the current month, the company incurred

$314,000 actual overhead and 31,457 actual labor hours while producing 37,900

units. (1)Compute

its overhead application rate for total overhead. (Round your answers to 2 decimal places. Omit the

“$” sign in your response.) (2)Compute

its total overhead variance. (Input the

amount as positive value. Indicate

the effect of each variance by selecting “F” for favorable,

“U” for unfavorable, and “None” for no effect (i.e., zero

variance). Leave no cells blank – be certain to enter

“0” wherever required. Round your intermediate calculations to

two decimal places and final answer to the nearest dollar amount. Omit

the “$” sign in your response.)

eBook LinkView Hint #1WorksheetDifficulty: Medium Exercise 24-10 Computation of total overhead rate and total overhead

variance L.O. P3Learning Objective: 24-P3 Compute overhead variances.

1.award:

2 out of

2.00 points Exercise 24-11 Computation of volume and controllable overhead variances

L.O. P3Earth

Company expects to operate at 80% of its productive capacity of 51,000 units

per month. At this planned level, the company expects to use 30,600 standard

hours of direct labor. Overhead is allocated to products using a

predetermined standard rate based on direct labor hours. At the 80% capacity

level, the total budgeted cost includes $61,200 fixed overhead cost and

$306,000 variable overhead cost. In the current month, the company incurred

$330,000 actual overhead and 23,250 actual labor hours while producing 31,000

units. (1)Compute

the overhead volume variance. (Input the

amount as positive value. Indicate the effect of each variance by

selecting “F” for favorable, “U” for unfavorable, and

“None” for no effect (i.e., zero variance). Leave no cells blank –

be certain to enter “0” wherever required. Round your hours per

unit to 2 decimal places. Omit the “$” sign in your response.) (2)Compute

the overhead controllable variance.(Input the

amount as positive value. Indicate the effect of each variance by

selecting “F” for favorable, “U” for unfavorable, and

“None” for no effect (i.e., zero variance). Leave no cells blank –

be certain to enter “0” wherever required. Round your hours per

unit to 2 decimal places. Omit the “$” sign in your response.)

eBook LinkView Hint #1WorksheetDifficulty: Medium Exercise 24-11 Computation of volume and controllable overhead

variances L.O. P3Learning Objective: 24-P3 Compute overhead variances.

12.award:

2 out of

2.00 points Exercise 24-12 Computing and interpreting sales variances L.O. A1Comp

Wiz sells computers. During May 2011, it sold 600 computers at a $700 average

price each. The May 2011 fixed budget included sales of 650 computers at an

average price of $660 each.(1)Compute

the sales price variance and the sales volume variance for May 2011. (Input all amounts as a positive value. Indicate the effect

of each variance by selecting “F” for favorable, “U” for

unfavorable, and “None” for no effect (i.e., zero variance). Leave

no cells blank – be certain to enter “0” wherever required. Omit

the “$” sign in your response).

eBook LinkView Hint #1WorksheetDifficulty: Medium Exercise 24-12 Computing and interpreting sales variances L.O. A1Learning Objective: 24-A1 Analyze changes in sales from expected

amounts.