112 ARB Inc. had these data of variable factory overhead during February 2023. 2.8 Standard variable OH/hour P16.30 Actual variable overhead Standard DL hours /unit P127,300 7,600 2,500 Actual DL hours units produced Variable overhead spending variance for the month? C. P10,050 U D. P13,200 U A. P3,150 F B. P3,420 U
112 ARB Inc. had these data of variable factory overhead during February 2023. 2.8 Standard variable OH/hour P16.30 Actual variable overhead Standard DL hours /unit P127,300 7,600 2,500 Actual DL hours units produced Variable overhead spending variance for the month? C. P10,050 U D. P13,200 U A. P3,150 F B. P3,420 U
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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112
Transcribed Image Text:112. ARB Inc. had these data of variable factory overhead during February 2023.
Standard DL hours /unit
2.8
Actual DL hours
7,600
units produced
2,500
Standard variable OH/hour P16.30
Actual variable overhead
P127,300
Variable overhead spending variance for the month?
A. P3,150 F
C. P10,050 U
B. P3,420 U
D. P13,200 U
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