Ever-Sharp Lawnmowers Ltd

question 119

Essay

Ever-Sharp Lawnmowers Ltd.controls variable manufacturing overhead costs with assembly-line hours as the denominator.Fixed manufacturing overhead costs are applied on a unit-of-output basis.Each lawnmower is allowed 10 assembly-line hours and standard variable manufacturing overhead totals $650 per unit.Budgeted fixed manufacturing overhead totals $29,400 for 420 lawnmowers.During July 4,200 assembly-line hours were incurred and 400 lawnmowers were produced.Actual manufacturing overhead costs for July were $260,400 for variable expenses and $32,300 for fixed expenses.Required:
a.Compute a 4-variance analysis for the month of July.
b.Compute a 3-variance analysis for the month of July.
c.Compute a 2-variance analysis for the month of July.

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Definitions:

Annexed

Attached or added, especially in terms of land or documents, to expand property or information.

Easement Appurtenant

A right that runs with the land, allowing one property owner to use another's property for a specific purpose.

Easement by Prescription

A right to use another's property, acquired through continuous and open use over a period of time without the owner's explicit permission.

Tract of Land

A specific area of land, possibly defined by boundaries or usage in legal, commercial, or geographical contexts.