Questions from General Accounting

Q: Sedona Company set the following standard costs for one unit of its

Sedona Company set the following standard costs for one unit of its product for 2015. The $5.60 ($4.00 1 $1.60) total overhead rate per direct labor hour is based on an expected operating level equa...

Q: Refer to the information from Exercise 23-17. Compute and

Refer to the information from Exercise 23-17. Compute and interpret the following. 1. Variable overhead spending and efficiency variances. 2. Fixed overhead spending and volume variances. 3. Controlla...

Q: World Company expects to operate at 80% of its productive capacity

World Company expects to operate at 80% of its productive capacity of 50,000 units per month. At this planned level, the company expects to use 25,000 standard hours of direct labor. Overhead is allo...

Q: Tempo Company’s fixed budget (based on sales of 7,000

Tempo Company’s fixed budget (based on sales of 7,000 units) for the first quarter of calendar year 2015 reveals the following. Prepare flexible budgets following the format of Exhib...

Q: Refer to the information from Exercise 23-19. Compute the

Refer to the information from Exercise 23-19. Compute the (1) overhead volume variance and (2) overhead controllable variance. Information from Exercise 23-19: World Company expects to operate at 80%...

Q: James Corp. applies overhead on the basis of direct labor hours

James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the f...

Q: Blaze Corp. applies overhead on the basis of direct labor hours

Blaze Corp. applies overhead on the basis of direct labor hours. For the month of March, the company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the...

Q: Comp Wiz sells computers. During May 2015, it sold 350

Comp Wiz sells computers. During May 2015, it sold 350 computers at a $1,200 average price each. The May 2015 fixed budget included sales of 365 computers at an average price of $1,100 each. 1. Comput...

Q: Bay City Company’s fixed budget performance report for July follows. The

Bay City Company’s fixed budget performance report for July follows. The $647,500 budgeted total expenses include $487,500 variable expenses and $160,000 fixed expenses. Actual expen...

Q: Resset Co. provides the following results of April’s operations: F

Resset Co. provides the following results of April’s operations: F indicates favorable and U indicates unfavorable. Applying the management by exception approach, which of the varian...