Teri's Furniture uses variance analysis to evaluate manufacturing overhead in its table factory. The information for the May overhead expenditures is as follows:

Required:
a. Calculate the variable manufacturing overhead spending and efficiency variances; and, the fixed manufacturing overhead budget and volume variances.
b. Prepare all necessary journal entries to record the actual costs, allocated costs, and variances. Keep variable and fixed cost entries separate.

Question

Teri's Furniture uses variance analysis to evaluate manufacturing overhead in its table factory. The information for the May overhead expenditures is as follows:
 
 Required:
a. Calculate the variable manufacturing overhead spending and efficiency variances; and, the fixed manufacturing overhead budget and volume variances.
b. Prepare all necessary journal entries to record the actual costs, allocated costs, and variances. Keep variable and fixed cost entries separate.

Quizplus · Accepted Answer

The Answer of Teri's Furniture uses variance analysis to evaluate manufacturing overhead in its table factory. The information for the May overhead expenditures is as follows:
 
 Required:
a. Calculate the variable manufacturing overhead spending and efficiency variances; and, the fixed manufacturing overhead budget and volume variances.
b. Prepare all necessary journal entries to record the actual costs, allocated costs, and variances. Keep variable and fixed cost entries separate.

Teri's Furniture Uses Variance Analysis to Evaluate Manufacturing Overhead in Its