Posted: December 31st, 2020

Advance Cost Accounting

Question description

Do not reply if you cannot meet the deadline or cannot answer correctly:I need assistance on the following.  I need a paper answering the following both Part 1 & Part 2 :Part One:One of your clients, Moore Manufacturing has asked you to assist them in evaluating their performance against their budgets. The management of Moore Manufacturing has provided the following standard cost sheet for one of its products: Direct Materials6 lb @ $2 per pound$12Direct Labor3 hrs @ $25 per hr$75Variable factor overhead2 hrs @ $4 per hour$8Fixed factory overhead2 hr @ $15 per hour$30Cost per unit$125Moore Manufacturing applies factory overhead based on direct labor hours and factory overhead is allocated based on a practical capacity of 500 units of product. The actual operating results for the year are as follows: Units manufactured400Direct materials purchased and used1,800 pounds$19,800Direct labor incurred750 hours20,250Variable factory overhead incurred5,000Fixed factory overhead incurred15,800Determine the following for the period: Flexible budget for variable overhead based on output for the periodTotal variable overhead applied to production during the periodTotal budgeted fixed factory overheadTotal fixed factory overhead applied to production during the period Calculate the following variances using four-variance analysis: Total variable overhead varianceVariable overhead spending varianceVariable overhead efficiency varianceTotal under applied or over applied variable overheadFixed overhead spending varianceProduction volume varianceTotal fixed overhead varianceTotal under applied or over applied fixed overhead Calculate the following variances using three-variance analysis: Factory overhead spending varianceFactory overhead efficiency varianceProduction volume variance Calculate the total overhead flexible budget variance and the production volume variance using a two-variance analysis. Part Two:In a 750 word document, explain to the management team at Moore Manufacturing about the variances and evaluation of their performance.

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