Overhead Variances and Their DisposalWarner Company has the following data for the past year:Actual overhead$828,000Applied overhead: Work-in-process inventory$172,000 Finished goods inventory344,000 Cost of goods sold344,000 Total$860,000 3. What if the variance is of the opposite sign calculated in Requirement 1? Provide the appropriate adjusting journal entries for Requirements 1 and2. For a compound transaction, if an amount box does not require an entry, leave it blank.Variance immaterialVariance material 2. Assume the variance calculated is material. After prorating, close the variances to the appropriate accounts. If an amount box does not require an entry, leave it blank.Overhead Control32,000Finished Goods InventoryFeedbackCheck My WorkIncorrectAssume the variance calculated is material. After prorating, provide the final ending balances of these accounts.UnadjustedProrated OverappliedAdjustedBalanceOverheadBalanceWork-in-Process Inventory$172,000Finished Goods Inventory$344,000$Cost of Goods Sold$344,000$4

Solution:- 2)Calculation of the the variance calculated is material. After prorating, close the…

Answered: Overhead Variances and Their Disposal…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Derr Company reports the following. Compute (a) controllable variance, (b) volume variance, and (c) total overhead variance. Actual total overhead Budgeted (flexible) overhead at units produced standard overhead applied Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute controllable variance. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Controllable Variance Actual total overhead Budgeted (flexible) overhead at units produced Controllable variance $ $ $ 980 800 900
Please help me work this out. The four choices in the drop-down boxes under general journal in the second picture are: accounts payable, accounts receivable, cash and controllable variance.
! Required information [The following information applies to the questions displayed below.] AirPro Corporation reports the following for this period. Actual total overhead Standard overhead applied Budgeted (flexible) variable overhead rate Budgeted fixed overhead Predicted activity level Actual activity level Enter your answers in the tabs below. Required A Required B Total Overhead Variance Actual total overhead Standard overhead applied Total overhead variance $ 28,425 $ 32,860
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Haliburton Mills Inc. is a large producer of men's and women's clothing. The company uses standard costs for all of its products. The standard costs and actual costs for a recent period are given below for one of the company's product lines (per unit of product): Standard Cost Actual Cost Direct materials: Standard: 2.0 metres at $4.50 per metre Actual: 2.4 metres at $4.25 per metre Direct labour: Standard: 2.4 hours at $3.50 per hour Actual: 2.0 hours at $3.85 per hour $ 9.00 $10.20 8.48 7.70 Variable manufacturing overhead: Standard: 2.4 hours at $3.00 per hour Actual: 2.0 hours at $3.65 per hour 7.20 7.30 Fixed manufacturing overhead: Standard: 2.4 hours at $3.90 per hour Actual: 2.0 hours at $3.95 per hour Total cost per unit 9.36 7.90 $33.96 $ 33.10 Actual costs: 4,580 units at $33.10 Standard costs: 4,500 units at $33.96 Difference in cost-favourable $148,950 152,820 $ 3,870 During this period, the company produced 4,500 units of product. A comparison of standard and actual costs…
Wetherbee Tech Services (WTS) is a chain of computer maintenance technicians for households and small businesses. The following data are available for last year's services: • WTS recorded 120,900 tech calls last year. It had budgeted 126,800 calls, averaging 90 minutes each. • Standard variable labor and support costs per tech call were as follows: Direct IT specialist services: 90 minutes at $54 per hour Variable support staff, supplies, and overhead: 30 minutes at $24 per hour Fixed overhead costs: Annual budget $4,141,800 • Fixed overhead is applied at the rate of $36.00 per call. . Actual tech service call costs: Direct IT specialist services: 120,900 calls averaging 84 minutes at $56.00 per hour Variable support staff, supplies, and overhead: averaging 40 minutes per call at $22.50 per hour x 120,900 calls Fixed overhead Required: a. Prepare a cost variance analysis for each variable cost for last year. b. Prepare a fixed overhead cost variance analysis. Complete this question by…
Instructions: Designate whether each of the following statements is true or false by circling the T or F. TF 1.If actual costs are less than standard costs, the variance is favorable. TF 2.On an income statement prepared under a standard cost accounting system, cost of goods sold is stated at standard costs with variances disclosed separately. TF 3.An unfavorable labor quantity variance indicates the actual number of direct labor hours worked was greater than the number of direct labor hours that should have been worked for the output attained. TF 4.Both the book value and the disposal value of an existing asset are relevant in a retain or replace equipment decision. TF 5.A direct labor price standard is frequently called the direct labor efficiency standard. TF 6.The cash payback technique identifies the time period required to recover the cost of the capital investment from the annual cash…
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Derr Company reports the following. Compute (a) controllable variance, (b) volume variance, and (c) total overhead. Actual total overhead $ 1,120 Budgeted (flexible) overhead at units produced Standard overhead applied 800 1,040 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute controllable variance. (Indicate the effect of the variance by selecting or no variance. Controllable Variance Controllable variance Required 2 >

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Actual overhead	$828,000
Applied overhead:
Work-in-process inventory	$172,000
Finished goods inventory	344,000
Cost of goods sold	344,000
Total	$860,000

Overhead Variances and Their Disposal Warner Company has the following data for the past year: Actual overhead $828,000 Applied overhead: Work-in-process inventory $172,000 Finished goods inventory 344,000 Cost of goods sold 344,000 Total $860,000