. If the total actual cost of variable factory overhead for the period as reported by the accounting records is $10,000, and the product of the actual quantity of application basis units used times the standard cost (or application rate) is $8,000, and the product of the standard quantity of application basis units times the standard cost (or application rate) is $7,000, then what is the Total Variable Factory Overhead Variance for the period? Group of answer choices $3,000 Unfavorable $1,000 Unfavorable $3,000 Favorable $2,000 Unfavorable $2,000 Favorable
. If the total actual cost of variable factory overhead for the period as reported by the accounting records is $10,000, and the product of the actual quantity of application basis units used times the standard cost (or application rate) is $8,000, and the product of the standard quantity of application basis units times the standard cost (or application rate) is $7,000, then what is the Total Variable Factory Overhead Variance for the period? Group of answer choices $3,000 Unfavorable $1,000 Unfavorable $3,000 Favorable $2,000 Unfavorable $2,000 Favorable
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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9. If the total actual cost of variable factory overhead for the period as reported by the accounting records is $10,000, and the product of the actual quantity of application basis units used times the standard cost (or application rate) is $8,000, and the product of the standard quantity of application basis units times the standard cost (or application rate) is $7,000, then what is the Total Variable Factory Overhead Variance for the period?
Group of answer choices
$3,000 Unfavorable
$1,000 Unfavorable
$3,000 Favorable
$2,000 Unfavorable
$2,000 Favorable
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