ACCOUNTING

Please review the attached document and provide CORRECT answers for the math problems.

Question 2
Crystal Glassware Company has the following standards and flexible-budget data.
Standard variable-overhead rate
$ 6 per direct-labor hour
Standard quantity of direct labor
2.0 hours per unit of output
Budgeted fixed overhead
$ 118,000
Budgeted output
29,500 units
Actual results for April are as follows:
Actual output
Actual variable overhead
Actual fixed overhead
Actual direct labor
Required:
Use the following diagrams below (similar to Exhibit 11-6 and Exhibit 11-8 to compute (1) the variable-overhead
spending and efficiency variances, and (2) the fixed-overhead budget and volume variances.
23,600 units
$
377,600
$
114,460
59,000 hours
Question 8
Crystal Glassware Company has the following standards and flexible-budget data.
Standard variable-overhead rate
$ 7.00 per direct-labor hour
Standard quantity of direct labor
3 hours per unit of output
Budgeted fixed overhead
$ 114,000
Budgeted output
19,000 units
Actual results for April are as follows:
Actual output
12,000 units
Actual variable overhead$ 316,000
Actual fixed overhead
$ 107,000
Actual direct labor
45,000 hours
Required:
Prepare journal entries for the following transactions.
Note: If no entry is required for a transaction/event, select “No journal entry
required” in the first account field.
• Record the incurrence of actual variable overhead and actual fixed overhead.
•
•
Add variable and fixed overhead to Work-in-Process Inventory.
Close underapplied or overapplied overhead into Cost of Goods Sold.
question 8 we have a selct wheel under general journal
•
No journal entry required
Accounts payable
Accounts receivable
Cost of goods sold
Direct materials
Production overhead
Sales revenue
Various accounts
Wages payable
Work-in-process inventory
Question 10
Calgary Paper Company produces paper for photocopiers. The company has developed
standard overhead rates based on a monthly capacity of 97,000 direct-labor hours as
follows:
Standard costs per unit (one box of paper):
Variable overhead (3 direct-labor hours @ $6.00 per hour)$ 18
Fixed overhead (3 direct-labor hours @ $8 per hour)
24
Total
$ 42
During April, 35,000 units were scheduled for production; however, only 29,000 units were
actually produced. The following data relate to April.
1. Actual direct-labor cost incurred was $2,576,000 for 92,000 actual hours of work.
2. Actual overhead incurred totaled $1,270,400, of which $570,400 was variable and
$700,000 was fixed.
Required:
Prepare two exhibits similar to Exhibit 11-6 and Exhibit 11-8 in the chapter that show the
following variances. State whether each variance is favorable, unfavorable, positive, or
negative, where appropriate.
1.
Variable-overhead spending variance.
2.
Variable-overhead efficiency variance.
3.
Fixed-overhead budget variance.
4.
Fixed-overhead volume variance.
Question 7
Montoursville Control Company, which manufactures electrical switches, uses a
standard-costing system. The standard production overhead costs per switch are based
on direct-labor hours and are as follows:
Variable overhead (5 direct-labor hours @ $8.00 per hour)
$ 40
Fixed overhead (5 direct-labor hours @ $12.00 per hour)*Footnote asterisk 60
Total overhead
$ 100
*Footnote asteriskBased on capacity of 300,000 direct-labor hours per month.
The following information is available for the month of October.
•
•
•
•
Variable-overhead costs were $2,400,000.
Fixed-overhead costs were $3,810,000.
58,300 switches were produced, although 68,000 switches were scheduled to be
produced.
285,000 direct-labor hours were worked at a total cost of $2,650,000.
Required:
Compute the variable-overhead spending and efficiency variances and the fixedoverhead budget and volume variances for October.
Note: Indicate the effect of the first three variance by selecting “Favorable” or
“Unfavorable”. Select “None” and enter “0” for no effect (i.e., zero variance). Select
“Positive” or “Negative” for the Fixed-overhead Volume variance.
Question 11
For each of the following independent Cases A and B, fill in the missing information.
The company budgets and applies production overhead costs on the basis of directlabor hours.
Indicate the effect of most variances by selecting “Favorable” or “Unfavorable”.
Select “Positive” or “Negative” for the Fixed Overhead Volume Variance. Select
“None” and enter “0” for no effect (i.e., zero variance).
Question 5
You brought your work home one evening, and your nephew spilled his chocolate milk
shake on the variance report you were preparing. Fortunately, knowing that overhead
was applied based on machine hours, you were able to reconstruct the obliterated
information from the remaining data. Fill in the missing numbers below.
Note: Round your per machine hour and per unit answers to two decimal places.
Indicate the effect of the variance by selecting “Positive” or “Negative”. Select “None”
and enter “0” for no effect (i.e., zero variance).