Riviera Beach Pink Flamingos has the following standards and ﬂexible-budget data. Actual results for April are as follows: Required: 1.Use the variance formulas to compute the following variances.Indicate whether each vari¬ance 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.Prepare journal entries to (a) Record the incurrence of actual variable overhead and actual ﬁxed overhead. (b) Add variable and ﬁxed overhead to Work-in-Process Inventory. (c) Close underapplied or overapplied overhead into Cost of Goods Sold.

Question

Riviera Beach Pink Flamingos has the following standards and ﬂexible-budget data.  Actual results for April are as follows:  Required: 1.Use the variance formulas to compute the following variances.Indicate whether each vari¬ance 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.Prepare journal entries to (a) Record the incurrence of actual variable overhead and actual ﬁxed overhead. (b) Add variable and ﬁxed overhead to Work-in-Process Inventory. (c) Close underapplied or overapplied overhead into Cost of Goods Sold.

Quizplus · Accepted Answer

The Answer of Riviera Beach Pink Flamingos has the following standards and ﬂexible-budget data.  Actual results for April are as follows:  Required: 1.Use the variance formulas to compute the following variances.Indicate whether each vari¬ance 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.Prepare journal entries to (a) Record the incurrence of actual variable overhead and actual ﬁxed overhead. (b) Add variable and ﬁxed overhead to Work-in-Process Inventory. (c) Close underapplied or overapplied overhead into Cost of Goods Sold.

Riviera Beach Pink Flamingos Has the Following Standards and ﬂExible-Budget