Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. use the following information of alfred industries

Use the following information of Alfred Industries. Standard manufacturing overhead based on normal monthly volume: Fixed ($303,400 ÷...

Free

60.1K

Verified Solution

Question

Accounting

Use the following information of Alfred Industries.

Standard manufacturing overhead based on normal monthlyvolume:
Fixed ($303,400 ÷ 20,000 units)$15.17
Variable ($100,000 ÷ 20,000 units)5.00$20.17
Units actually produced in current month18,000units
Actual overhead costs incurred (including $300,000 fixed)$383,800

Compute the overhead spending variance and the volume variance.(Indicate the effect of each variance by selecting"Favorable" or "Unfavorable". Select "None" and enter "0" for noeffect (i.e., zero variance).)

Answer & Explanation Solved by verified expert
3.8 Ratings (528 Votes)

If it is helpful, please rate the answer and if any doubt arises let me know

Overhead Spending Variance = $     20,306 Favorable
Overhead Volume Variance = $     30,340 Unfavorable
Workings:
Overhead Spending Variance
actual overhead - Overhead Budgeted
$                     3,83,800 - $                                   3,93,400 = $     20,306 Favorable
Overhead Budgeted = (18000 X $5) + $303400
= $                                   3,93,400
Overhead Volume Variance
Fixed overhead rate X (Actual units produced - Budgeted production units)
$                           15.17 X (18000 - 20000) = $     30,340 Unfavorable

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Part I A) The solubility of silver bromide can be increased by dissolving it in a solution...

Chemistry
Q

After mixing 5.00 mL of the 5.0×10–5 M crystal violet solution with 5.00 mL of 0.20...

Chemistry
Q

An unstable nucleus of mass 1.7 ✕ 10−26 kg, initially at rest at the origin of...

Physics
Q

description of the global issue reproductive rights (health issues). Is a nationalistic (patriotic) or globalistic approach...

Psychology
Q

The three question response posts must have a minimum of 200 words each and must directly quote...

General Management
Q

100 2002 2002 4092 and 5092 are connected as shown in figure The equivalent resistance...

Physics
Q

8 Now find a formula for the graph that you see and describe how to...

Algebra
Q

Forecast Sales Volume and Sales Budget For 20Y6, Raphael Frame Company prepared the sales budget...

Accounting
Q

What is the theoretical justification for excluding fixed manufacturing costs from inventories in marginal costing?

Accounting
Q

Find the periodic payment for the following simple annuity due. Future Value $21,200 Present Value...

Accounting
Q

ABC Ltd was registered as a corporation on 1 July 2023. On 4 July 2023,...

Accounting
Q

An installment contract for the purchase of a car requires payments of $226.04 at the...

Finance