Mulliner Company showed the following information for the year:Standard variable overhead rate (SVOR) per direct labor hour $3.50
Standard hours (SH) allowed per unit 3
Actual production in units 20,000
Actual variable overhead costs $220,500
Actual direct labor hours 61,200
1. Calculate the standard direct labor hours for actual production.
2. Calculate the applied variable overhead. $
3. Calculate the total variable overhead variance. Enter amounts as positive numbers and select Favorable or Unfavorable.


Answer 1


1. 60,000 hours

2. $210,000

3. $10,500 Unfavorable


1. Standard Hours = 3  per unit

Actual production units = 20,000

Standard Hours for actual production = Standard Hours ×  Actual production units

= 3 × 20,000

= 60,000 hours

2. Applied variable overhead = Standard hours × Standard Rate per hour

= 60,000 × $3.50

= $210,000

3. Total Variable overhead variance = Applied variable overhead - Actual variable overhead overhead

= $210,000 - $220,500

= $10,500 Unfavorable

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How would the issuance of a mortgage note in exchange for a building be reported on the statement of cash flows? A. Noncash finenctng and Investing actvity B. Investing actvity C. Operating activity D. Financng activity
Problem 1-11 For most products, higher prices result in a decreased demand, whereas lower prices result in an increased demand. Let d = annual demand for a product in units p = price per unit Assume that a firm accepts the following price-demand relationship as being realistic: d = 800 - 10p where p must be between $20 and $70. How many units can the firm sell at the $20 per-unit price? Round your answer to the nearest whole number.

Aragon Company has just received the August 21, 2010 bank statement, which is summarized below. County National Bank Disbursements Receipts Balance

Balance, August 1 $9,369

Deposits during August $32,200 41,569

Note Collected for depositor, including $40 interest 1,040 42,609

Checks cleared during August $34,500 8,109

Bank Service Charges 20 8,089

Balance, August 31 8,089

The general ledger Cash account contained the following entries for the month of August.


Balance, August 1 10,050 Disbursements for August 35,403

Receipts during August 35,000

Deposits in transit at August 31 are $3,800, and checks outstanding at August 31 total $1,550. Cash on hand at August 31 is $310. The bookkeeper improperly entered one check in the books at $146.50 which was written for $164.50 for supplies (expense); it cleared the bank during the month of August.


a. Preare a bank reconciliation dated August 31, 2010, proceeding to a correct balance.

b. Prepare any entries necessary to make the books correct and complete.

c. What amount of chas should be reported in the August 31 balance sheet?


a. The preparation of the bank reconciliation is shown below.

b. The entries are given below.

c. The amount of cash should be $10,649.

Preparation, journal entries:

a. The preparation of the bank reconciliation is presented below.

Bank balance as per bank statement $8,089

Add: cash on hand $310

Add: deposit in transit $3.800

Less: outstanding checks $1,550

Adjusted balance $10,649

Balance as per cash book ($10,050 + $35,000 - $35,403) $9,647

Less: correction ($164.5 - $146.5) $18

Less: bank service charge $20

Add: note collected $1,040

Adjusted balance $10,649

b. The journal entries:

Cash $1,040

  Note receivable $1000

 Interest receivable $40

(Being collection od note & interest)

Bank charges $20

      cash $20

(being bank charges are recorded)

Supplies expense $18

         cash $18

(Being error in recording check)

c. The amount of cash should be $10,649.

Learn more about journal entry here:


Complete solution in tabular form is given below for better understanding and demonstration.

Many people have argued that the skills needed to be successful in today's workforce have changed. What skills do you feel an individual needs to be successful in a job today? Why do you feel these skills are most important?



the skills of:

1) Basic Technology

2) Communication

3) Problem Solving

4) Collaboration

5) Adaptability

6) Multitasking

7) Social Media


Successful employees have common and detailed career goals and plans. Those who do not, however, prefer to flow in their work lives. The person with goals has a strong internal motivation. They are not discouraged when they fail. It is difficult to separate these people from their work and distract them. A person with goals is already motivated for development. Most importantly, an employee with clear goals often has a clearly defined career and development plan, and he already knows what tools, skills and qualifications will help him in that sequence. A person without goals is like a piece of water moving in the direction of sea waves and winds. Wherever the wind blows or where the waves drive, they will go there.

We could say that five general skills that workers say are most important when it comes to getting hired and being successful in the workplace:

Ability and willingness to learn new skills

Critical thinking and problem solving  

Collaboration and team work  

Interpersonal communication

Ability to analyze and synthesize information.

More specifically, we can list the most important ones nowadays, the skills of:

1) Basic Technology

2) Communication

3) Problem Solving

4) Collaboration

5) Adaptability

6) Multitasking

7) Social Media

Crocetti Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit $ 121 Budgeted unit sales (all on credit): January 7,000 February 7,500 March 11,900 April 14,900 Credit sales are collected: 40% in the month of the sale 60% in the following month The budgeted accounts receivable balance at the end of February is closest to:



The budgeted accounts receivable balance at the end of February is closest to: $4,500.


Prepare a Accounts Receivable Budget for January and February

                                              January           February      

Balance b/d                                $0                $4,200

Credit Sales                           $7,000             $7,500            

Cash Received (40%)           ($2,800)          ($3,000)

Cash Received (60%)                $0               ($4,200)

Balance c/d                           $4,200             $4,500


Therefore, the budgeted accounts receivable balance at the end of February is closest to: $4,500

Retirement savingsA couple thinking about retirement decides to put aside $3,000 each year in a savings plan that earns 8% interest. In 5 years, they will receive a gift of $10,000 that also can be invested.

a. How much money will they have accumulated 30 years from now?

b. If the goal is to retire with $800,000 savings, how much extra do they need to save every year?



a. $408,334.39

b. $3,457.40


r = rate per period = 8% = 0.08

P = Initial Value of Gift = $10,000

t = time = 30 - 5 = 25, As received after 5 years.

A = P (1 + r)^(t)

A = $10,000 (1 + 0.08)^(25)

A = $10,000 x 1.08^(25)

A = $10,000 x 6.8485

A = $68,484.75

FV of annuity = P [((1 + r)^(n) - 1)/(r) ]

P = Periodic Payment = $3,000


n = number of periods = 30

FV of annuity = 3,000 [((1 + 0.08)^(30) - 1)/(0.08) ]

FV of annuity = 3,000 [((1.08)^(30) - 1)/(0.08) ]

FV of annuity = 3,000 [\frac{10.0627 - 1} {0.08} ]

FV of annuity = 3,000 [\frac{9.0627} {0.08} ]

FV of annuity = $3,000 x 113.2832

FV of annuity = $339,849.63

Accumulated value of money can be calculated as follows;

$68,484.75 + $339,849.63



If they wish to retire with $800,000 savings, they need to save additional amount of money every year to provide additional amount of money, as follows;

$800,000 - $68,484.75


The extra annual savings can be calculated as follows;

731,515.24 = P [((1 + 0.08)^(30) - 1 )/(0.08) ]

$731,515.24 = P x 113.28

Divide the above equation by 113.28 we get;

P = (731,515.24)/(113.28)

P = $6,457.40

They are already paying $3,000, So the extra saving they need make every year is calculated as follows;

$6,457.40 - $3,000


The u. s. treasury issued a 10-year bond on november 16, 1998, paying 6.47% interest. thus, if you bought $600,000 worth of these bonds, you would receive $38,820 per year in interest for 10 years. at investor wishes to buy the rights to receive the interest on $600,000 worth of these bonds. the amount the investor is willing to pay is the present value of the interest payments, assuming a 6% rate of return. if we assume (incorrectly, but approximately) that the interest payments are made continuously, what will the investor pay?


The investor will pay $ 21,304.88to receive an annuity of $38,820 each year for 10 years at 6% interest compounded continuously.

Given :

Interest on $600,000 worth of bonds = $38,820 per year

No. of years = 10 years

Discount rate = 6%

Compounding interval = Continuous compounding ( as given in the question)

We use the following formula to arrive at the Present Value:

PV = C /e^(rt)

PV = 38820 /2.71828^(0.06*10)

PV = 38820 /1.822118065

PV = $ 21,304.88

If the percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good, then how is the demand for the good characterized?



Price Elastic


We know that

The formula to compute the price elasticity of demand is shown below:

= (Percentage change in quantity demanded) ÷ (percentage change in price)

The classification as follows

1. Perfectly inelastic = If zero  

2. Inelastic = When elasticity is below than one

3. Unitary elastic = When elasticity is equal to one

4. Elastic = When elasticity is exceeded than one

5. Perfectly elastic = When elasticity is in infinity

Since the  percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good which reflects that the elasticity is more than one


The demand is price elastic in nature because it is greater than 1.


Price Elasticity of demand refers to the response of quantity demanded of a good to the change in price. Of course, when the price decreases, quantity demanded of a good increases and vice-versa but to how much degree is determined by the Price Elasticity of demand.

Mathematically, Price Elasticity of Demand is the ratio of % change in quantity demanded of a good and % change in the price of a good i.e.

Price Elasticity of Demand = % change in quantity demanded of a good / % change in the price of a good

In the problem, since the percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good, the above ratio will be greater than 1. Hence, the demand of the good is price elastic.