Crystal glassware company has the following standards and flexible-budget data.

Chapter 1'l Flexible Budgeting and the Management ol Overhead and Support Activity Costs 485

Exercises Alt appticabte Exercises are avaitabte with McGraw-Hit l's Connect Accountingtt. 4 COffieCt I

Crystal Glassware Company has the following standards and flexible-budget data. Exercise 11-22 Strai ghtf orward Computation

Brrri0eted fixeri overhead ........ ......... S100.{)00

Aotual rosults lirr ;\pril are as lirllou s:

/..1.i ,,1 .rU{P-lJ' :J-l ... .. $:r0,0tlc atl-t r\:ri overr'eiiu . . S9'.1i00 Act.,r. .: Iacllabur ... . . ... 50 C0(j no-'s

Required: I lsc the r ariancc lix'niulas to conrpulc tlre lirllos ing r ariarrccs. Irrdicate rr hetlter each vari- ancc is Iarorable or Lrnlavorablc. ultcle appropriatc.

l. Variable

Reter to thc data in the preccrting cxcrcisc. []se diagrams siurilar t. th.sc in I'.hirri;;;,-ffi , Jfi[iill;1l conlputs thc rariablc

Ref-er 1o thc data in the Exercise ll 22 for('qstal classuarc companr. ,r.r',. *rrffiffi ,,rjXittlXl,li;3tr,,unr* inl:xhibitllT(rariablcorcrhead)andl:rhihitllg(tircdoverhead)todcpicttheorc'rhcatl rarirrlc.'s.

Exercise 1 1-25 Choosc a cit) or stale in the L-inited Statcs (or a f'anad ian city or provincc )" and usc. [hr- Irrtcrrret .to arry or State Budget; Activ ty_ crplorc the annual budget tbr thc gor ernrncntal un;t ) ou sc lccted. [-'or cranrple. r ou cou ld check out th.' Baied Flexible Bu dget; i,ost annual bLrdgct lbr i at uls.losanse les.corn. Drivers Use of lrlte,tet Required:

l. Select threc itcms in thc hudgct ancl crplairr hol thcsc itcrns riould be tloatetl il'thc butlgct ucrc conrcrled to an acti\it\-birscd Ilcriblc budgct.

2. \\'hal rould lrc appropriatc cosl drirers lbr thc budgctarr itcrns -v-ou sclcctcd:'

Exercise 1 1-26 The following data are the actual results for Marvelous Marshmallow Company for October. Straightforward Computation

Actual variable overhead ...,.......... ..,........ $405,000 {LS 5} Actual fixed overhead ...,.......... $1 22,000

Standard cost and budget information for Marvelous Marshmallow Company fbllows:

Standard variable-overhead rate $9,00 per machtne hour Standard quantity of machine hours ................... .. 4 hours per case of marshmallows Budgeted fixed overhead .............. $1 20,000 per month Budgeted output 1 0,000 cases per month

Required:

l. Use any ofthe methods explained in the chapterto compute the following variances. Indicate whether each variance is favorable or unfavorable, where appropriate.

a. Variable-overhead spending variance. b. Variable-overhead efficiency variance.