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Marvelous Marshmallow Company -the following data are the actual results for Marvelous Marshmallow Company for October

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Question;the following data are the actual results for Marvelous Marshmallow Company for October.Actual output................................................................................................................................. 9,000 casesActual variable overhead................................................................................................................ $405,000Actual fixed overhead..................................................................................................................... $122,000Actual machine time...................................................................................................................... 40,500 machine hoursStandard cost and budget information for Marvelous Marshmallow Company follows:Standard variable-overhead rate.................................................................................... $9.00 per machine hourStandard quantity of machine hours............................................................................... 4 hours per case of marshmallowsBudgeted fixed overhead............................................................................................... $120,000 per monthBudgeted output........................................................................................................... 10,000 cases per monthRequired:1. Use any of the methods explained in the chapter to compute the following variances. Indicatewhether each variance is favorable or unfavorable, where appropriate.a. Variable-overhead spending variance.b. Variable-overhead efficiency variance.c. Fixed-overhead budget variance.d. Fixed-overhead volume variance.2. Build a spreadsheet: Construct an Excel spreadsheet to solve the preceding requirement. Showhow the solution will change if the following information changes: actual output was 9,100 cases,and actual variable overhead was $395,000.

 

Paper#42839 | Written in 18-Jul-2015

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