Ice Box Gourmet, Inc., produces containers of frozen food. During April, The com

Question

Ice Box Gourmet, Inc., produces containers of frozen food. During April, The company produced 800 cases of food and incurred the following actual costs.

  

  

  

  

Compute the following cost variances from the available data. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Do not round intermediate calculations. Round "Variable-overhead efficiency variance" to 2 decimal places.)

Ice Box Gourmet, Inc., produces containers of frozen food. During April, The company produced 800 cases of food and incurred the following actual costs.

Explanation / Answer

Data for Resource Variance

Data for fixed overhead variance

Statement of Variances

Standard Overheads

Budgeted Overheads - Actual

Overheads = 15000-15700

700 Unfavorable

300

Unfavorable

Standard Qty Standard Rate Amount Actual Qty Actual Rate Amount Material 25*800 2.1 42000 21000 2.3 48300 Labor 6*800 16 76800 5500 16.8 92400 Variable Overhead 6*800 1.8 8640 5500 1.30909 7200

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