Marvelous Marshmellow corporation - 24126

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Price: $19.99
  • From: Business,
  • Posted on: Wed 04 Sep, 2013
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Request Description

The following data are the actual results for Marvelous Marshmallow Company for October.

 

Actual output ................................................................................................................................. 9,000 cases

 

Actual variable overhead ................................................................................................................ $405,000

 

Actual fixed overhead ..................................................................................................................... $122,000

 

Actual machine time ...................................................................................................................... 40,500 machine hours

 

Standard cost and budget information for Marvelous Marshmallow Company follows:

 

Standard variable-overhead rate .................................................................................... $9.00 per machine hour

 

Standard quantity of machine hours ............................................................................... 4 hours per case of marshmallows

 

Budgeted fixed overhead ............................................................................................... $120,000 per month

 

Budgeted output ........................................................................................................... 10,000 cases per month

 

Required:

 

1. Use any of the methods explained in the chapter to compute the following variances. Indicate

 

whether 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. Show

 

how the solution will change if the following information changes: actual output was 9,100 cases,

 

and actual variable overhead was $395,000.

Solution Description

Attachments
marvelous_marshmellow_corporation.xlsx
marvelous_marsh...