Purchase Solution

Overhead and Marketing Variances

Not what you're looking for?

Ask Custom Question

P 13-21: Megan Corp.

The following data are available for the Megan Corp. finishing department for the current year. The department makes a single product that requires three hours of labor per unit of finished product. Budgeted volume for the year was 30,000 direct labor hours.

Overhead efficiency variance $4,000 U
Budgeted fixed overhead $900,000
Number of units produced 11,000 units
Standard direct labor wage rate $15 per direct labor hour
Total overabsorbed overhead variance $92,000 F
Direct labor efficiency variance $15,000 U

Required:

a. Calculate
(i) Actual overhead incurred.
(ii) Overhead spending variance.
(iii) Actual number of direct labor hours.
(iv) Budgeted variable overhead rate per direct labor hour.
(v) Overhead rate per direct labor hour.
(vi) Overhead volume variance.
(vii) Actual direct labor wage rate.

b. Write a one-paragraph report summarizing the results of operations.

Purchase this Solution
Solution Summary

The expert examines overhead and marketing variances for Megan Corporation.

Purchase this Solution
Free BrainMass Quizzes
Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

View More Free Quizzes
Related BrainMass Solutions

  • Computing and jouralizing standard cost variances

    cost of $30,300, actual overhead cost was $10,000 variable and $30,500 fixed, marketing and administrative costs were $115,000.

  • Question about Overhead and Marketing Variances

    330575 Question about Overhead and Marketing Variances Beanie Babies The Ogden plant makes Beanie Babies, small stuffed toys in a variety of animal shapes. The toys are so popular that they have become collectors' items.

  • Darius Company: Explain the October $72,000 unfavorable

    The production variances are the most involved, showing you price, usage, rate and efficiency variances for direct costs and two-way variance for overhead (not enough details to do a four-way variance).

  • Compute the absorption-costing operating income

    : $4.80 Standard Fixed costs: Manufacturing overhead: $10,800,000 Marketing: $1,200,000 The manufacturing overhead is allocated to each unit based on standard machine-hours.

  • Accounting for Decision Making Control

    Material Variances- Overhead Variances- Marketing Variances- Integrated Framework- Organization and Management Accounting- ANSWERS Please see attached file for answers.

  • Overhead and Marketing Variances..

    The expert examines overhead and marketing variances for wholesaler of wine distributors.

  • flexible budget variable cost variance

    Fixed overhead variances. Variable selling and administrative expenses variances. Direct labor variances. Variable overhead variances Answer: Variable selling and administrative expenses variances.

  • Atherton Company

    Required: Compute the four variances for variable and fixed overhead and indicate if they are favorable or unfavorable. Variable overhead spending variance.

  • ACCT week 11 CH8 SmartSound Manufacturers

    There are three new tabs for you, one for computations, one for DM and DL variances and one for overhead variances, with call out arrows to highlight the variances.

View More Related Solutions