What is Blossom variable overhead spending variance

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Q1. Blossom Manufacturing produces gourmet blackberry preserves. Blossom based its current year budget on a production level of 540100 jars of preserves using ½ hour direct labor time for each jar (which includes hand-sorting and trimming the berries). Total budgeted variable overhead for the year was $1242100. During the year, Blossom used 280100 direct labor hours to produce 550100 jars of blackberry preserves. Actual variable overhead for the year was $1246100. What is Blossom's variable overhead spending variance?

a. $42360 favorable

b. $42360 unfavorable

c. $23230 favorable

d. $23230 unfavorable

Q2. Sunland Manufacturing produces gourmet blackberry preserves. Sunland based its current year budget on a production level of 541900 jars of preserves using ½ hour direct labor time for each jar (which includes hand-sorting and trimming the berries). Total budgeted variable overhead for the year was $1245800. During the year, Sunland used 281900 direct labor hours to produce 551800 jars of blackberry preserves. Actual variable overhead for the year was $1251700. What is Sunland's variable overhead efficiency variance?

a. $5900 unfavorable

b. $5900 favorable

c. $27600 favorable

d. $27600 unfavorable

Q3. Sandhill Manufacturing produces music boxes. This year's budget was based on the production of 5700 music boxes using a standard of 3 direct labor hours per music box and $4 variable overhead per direct labor hour. Sandhill incurred 10200 hours to produce 5650 music boxes. If actual variable overhead for the year is $33000, what is Sandhill's variable overhead spending variance?

a. $7600 favorable

B. $7600 unfavorable

c. $7800 favorable

d. $7800 unfavorable

Q4. Carla Vista Manufacturing produces the glass vases used by florists. Each vase requires 15 minutes of direct labor time for which glass blowers are budgeted at $30 per hour. During November, Carla Vista produced 10900 glass vases which required 3450 hours of direct labor. Carla Vista paid wages to the glass blowers of $75400 during November. What is Carla Vista's direct labor rate variance for November?

a. $21750 favorable

b. $28100 favorable

c. $28100 unfavorable

d. $21750 unfavorable

Q5. Carla Vista Company manufactures patio umbrellas. The direct labor standard for each umbrella is 1.25 direct labor hours at a standard rate of $12 per hour. During June, Carla Vista used 38400 direct labor hours to produce 32000 umbrellas. Carla Vista's direct labor payroll totaled $430400. What is Carla Vista's direct labor efficiency variance for November?

a. $19200 favorable

b. $30400 unfavorable

c. $19200 unfavorable

d. $30400 favorable

Reference no: EM132730460

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