Details:Please complete the following exercises and/or problems from the textbook:E23-16E23-19E23-20CP23-36Prepare your answers in an Excel workbook, using one worksheet per exercise or problem.Save your workbook using the filename LastnameFirstinitial.ACC350.T# where the # represents the topic number. For example, John Doe would submit assignment #5 using the following name: DoeJ.ACC350.T5.You are not required to submit this assignment to Turnitin.
Note: Exercise E23-19 should be completed before
attempting Exercise E23-20.
E23-20
Computing overhead variances
Review the
data from Great Fender given in Exercise E23-19. Consider the
following
additional information:
Static
budget variable overhead $ 5,500
Static
budget fixed overhead $ 22,000
Static
budget direct labor hours 550 hours
Static
budget number of units 22,000 units
Great Fender
allocates manufacturing overhead to production based on standard
direct labor
hours. Great Fender reported the following actual results for 2014:
actual
variable overhead, $4,950; actual fixed overhead, $23,000.
Requirements
1. Compute
the overhead variances for the year: variable overhead cost variance,
variable
overhead efficiency variance, fixed overhead cost variance, and fixed
overhead
volume variance.
E23-19 Calculating materials and labor variances
Great
Fender, which uses a standard cost accounting system, manufactured 20,000
boat
fenders during 2014, using 144,000 square feet of extruded vinyl purchased at
$1.05
per square foot. Production required 420 direct labor
hours that cost $13.50
per hour. The direct materials
standard was 7 square feet of vinyl per fender, at a
standard
cost of $1.10 per square foot. The labor standard was
0.025 direct labor
hour
per fender, at a standard cost of $12.50 per hour.
Compute the
cost and efficiency variances for direct materials and direct labor.
Does
the pattern of variances suggest Great Fender’s managers have been
making
trade-offs? Explain
