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ACC- Gerhan Company's flexible budget for the units actually

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Question;Gerhan Company's flexible budget for the units actually manufactured in May shows $15,640 of total factory overhead, this output level represents 70% of available capacity. During May the company applied overhead to production at the rate of $3.00 per direct labor hour (DLH), based on a denominator volume level of 6,120 DLHs, which represents 90% of available capacity. The company spent 5,000 DLHs and incurred $16,500 of total factory overhead cost during May, including $6,800 for fixed factory overhead.What is the total factory overhead flexible-budget variance for Gerhan Company in May?What is the factory overhead efficiency variance for Gerhan Company in May, under the assumption that the company uses a two-variance breakdown (decomposition) of the total overhead variance?What is the variable factory overhead spending variance in May, assuming Gerhan uses a four-variance breakdown (decomposition) of the total overhead variance?What is the factory overhead efficiency variance for May under the assumption that Gerhan uses a four-variance breakdown (decomposition) of the total overhead variance?What is the fixed factory overhead spending variance in December for Gerhan Company?

 

Paper#42731 | Written in 18-Jul-2015

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