Below is the complete list of accounts of Cobras Incorporated and the related balance at the end of March. All accounts have the
1 answer:
The trial balances of the Cobras Incorporated as of the given date and position will tally a balance of $62,400.
<h3>What is a trial balance?</h3>A table that contains all the debit and credit balances from all the ledger books of accounts of a business organization as on a given date is known as the trial balance of such organization.
The trial balance has been attached in the image for better understanding of the concept for the learners. Please refer to the same for more insights.
Hence, the concept of trial balance has been explained above.
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Before information shows is the correct and complete question.
The Lopez Company use a standard costing in its manufacturing plant for the auto part. The standard cost of particular auto part based on a denominator level of a 4.000 output unit per year. included 6 machine-hours of variable manufacturing overhead at $8 per hour and 6 machine-hours of fixed manufacturing overhead at $15 per hour.
Actual output produced was 4.400 units.
Variable manufacturing overhead incurred was $245.000.
Fixed manufacturing overhead incurred was $373.000.
Actual machine-hours were 28.400.
Prepare the analysis of all variable manufacturing overhead and fixed manufacturing overhead variances.
Additional diagram attached to this question is displayed in the first image below.
Answer:
Explanation:
By using a columnar method, the analysis of all the variance & fixed manufacturing overhead varaince can be computed as follows:
Variable manufacturing overhead analysis:
Actual cost Incurred: ║ Actual input × Budgeted ║ Allocated: Budgeted
Actual input × Actual rate Input for actual output
rate × Budgeted rate
245000 28400×$8.00 = 227200 (4400×6hrs×$8)
= 211,200
17800 U 16800 U
Spending Variance Efficiency Variance
33800 U
Flexible Budget Variance
Hence;
The spending Variance = $17,800 U
Efficiency Variance = $16,000 U
Flexible Budget Varaince = $33800 U
where; F = Favourable & U = Unfavourable
<u>For the fixed Manufacturing Overhead:</u>
Actual cost Incurred: ║ Flexible Budget Lump ║ Allocated: Budgeted
Actual input × Actual sum regardless of the Input for actual output
rate output level × Budgeted rate
373000 4000×6hrs×15 = 360000 (4400×6hrs×$15)
= 396000
13000 U 36000 F
Spending Variance/ Production-Volume
Flexible budgeted variance Variance
23000 F
Over allocated fixed
Overhead
Hence;
The spending Variance = $13000 U
The production Volume Variance = $36,000 F
Over allocated fixed overhead = $23000 F
where; F = Favourable & U = Unfavourable
NOTE: To have a better view of the above computation in a table format, refer to the second and the third diagram in the image below.
